Chelsea Green Publishing

Chelsea Green Blog

Obama’s Challenge Author Robert Kuttner on Deficit Hawks and Entitlements

With the budget deficit rising as the economic stimulus takes effect, deficit hawks—both the Republican and “Blue-Dog” Democrat varieties—are rolling out perennial target Social Security again. Robert Kuttner, co-founder of The American Prospect and author of Obama’s Challenge: America’s Economic Crisis and The Power of a Transformative Presidency, looks at the flaws in their argument against one of the most successful federal program in history in this article from the Washington Post.

What’s wrong with the story of entitlements wrecking the economy? Plenty.

For starters, the $56 trillion “unfunded liability” figure relies on creative accounting. Only about $6.36 trillion is the actual public debt, according to the U.S. Treasury. Most of the number Peterson cites is a combination of the 75-year worst-case projections for Social Security, Medicare and Medicaid.

These three programs face very different challenges and remedies. Social Security’s accounts are actually near long-term balance. The Congressional Budget Office puts the 75-year shortfall at only about one-third of 1 percent of projected gross domestic product.

Social Security is financed by taxes on wages — and since the mid-1970s, wage growth has stagnated. If median wages rose with productivity growth, as they did during the first three decades after World War II, Social Security would enjoy a big surplus. Even without a raise for working America, Social Security needs only minor adjustments.

Medicare really does face big deficits. But that’s because Medicare is part of a hugely inefficient, fragmented health insurance system. It makes no sense to “reform” Medicare in isolation.

If we just cap Medicare, needy seniors would get bare-bones care while more affluent people could supplement their insurance out of pocket. The decent cure for Medicare’s cost inflation lies in comprehensive universal health insurance so that the entire system is more efficient and less prone to inflation. You don’t hear many budget hawks supporting that brand of reform.

Read the whole article here.

Image courtesy of guardian.co.uk.


Bern Baby Bern!

Feel the Bern, now read the Bern. Chelsea Green is bringing out the first major book chronicling the issues being raised by US Senator Bernie Sanders in his campaign for president of the United States. The Essential Bernie Sanders and His Vision for America is the only book that outlines, in Sanders’ own words and […] Read More..

Economic Development is Broken. Here’s How to Fix It

Economic development today is completely broken. That’s the argument of author Michael Shuman in his new book, The Local Economy Solution. The singular focus on attracting global corporations is not just ineffective but counterproductive, Shuman argues, especially given the huge opportunity costs. Indeed, it’s not far-fetched to suggest that the best way most communities can […] Read More..

5 Shareable Strategies for Creating Climate Action

Frustrated about climate change? You’re not alone. Most people in our society find themselves somewhere on the spectrum of depressed about our climate situation to flat-out denying that it exists. In fact, the more information about global warming that piles up, the less we seem to do to combat it. What is the reason for this […] Read More..

A Mini-Festo for Earth Day – Rebuild the Foodshed

For the past month, author Philip Ackerman-Leist has been on a Twitter MiniFesto campaign – each day sending out a new tweet designed to spark conversation and pass along some lessons he learned whilst working on his last book, Rebuilding the Foodshed. You might also know Philip as the author of his memoir Up Tunket […] Read More..

Books in the News: ‘The Tao of Vegetable Gardening’ & More!

What does Taoism have to do with gardening? That question is being answered in The Washington Post this week with a lengthy profile of Chelsea Green author Carol Deppe—gardener, plant breeder, seed expert, and geneticist based in Oregon—and her new book The Tao of Vegetable Gardening. “Once I read The Tao of Vegetable Gardening, with its […] Read More..