| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

Analysis/Comment Last Updated: Aug 23, 2010 - 8:24:15 PM

Dr. Peter Morici: Democrats are heading for a train wreck
By Professor Peter Morici
Aug 20, 2009 - 3:33:34 AM

Email this article
 Printer friendly page

Peter Morici is an economist and professor at the Robert H. Smith School of Business at the University of Maryland. He is a recognized expert on international economics, industrial policy and macroeconomics. Prior to joining the university, he served as director of the Office of Economics at the US International Trade Commission during the Clinton Administration.

Dr. Peter Morici: Intolerance has captured the Democratic Party, and arrogance will destroy its grip on power.

On marquee issues—health care, cap and trade, and the recession—Democratic leaders are unwilling to listen to the legitimate concerns of center-leaning voters and business leaders who made possible their victories in 2008.

Many Americans support universal health care but want a system like the Netherlands built on private insurers. Yet, many Democrats insist on a public entity or government-like nonprofit, and an 8 percent payroll tax on businesses that don’t provide health insurance.

Retailers, small manufacturers and other businesses paying workers less than $80,000 annually will find it cheaper to drop their plans and push folks into the public option.

Clinton Labor Secretary Robert Reich recently claimed private insurers don’t compete, because of antitrust exemptions. Anyone who chooses from an employer list of plans knows private insurers offer competing ranges of coverage and cost. Anyone who took Econ 101 knows the number of competitors, not the strong arm of government, determines the opportunity to fix prices and collude.

Cap-and-trade legislation moving through Congress would reduce U.S. C02 emissions by imposing a system of purchasable permits, but raise costs in energy-intensive industries like petrochemicals, aluminum and automaking.

China is not implementing a similar system, and cap-and trade would cause U.S. manufacturing jobs to move across the Pacific where CO2 use restrictions would not apply, increasing global pollution.

Businesses and moderate senators have petitioned the President to endorse a cost equalization tax on imports from countries that do not restrict CO2 emissions. This would better protect the global environment and be consistent with World Trade Organization Law, but the President calls such a policy protectionist.

China has a $400 billion stimulus package, and its economy is firing on all cylinders. President Obama has an $800 stimulus but prospects for the U.S. economic recovery are fragile.

Obama’s stimulus was focused on tax cuts, which went into saving, not spending, and shoring up employment in state and local government budgets, which was not needed and had little effect.

The private sector has shed nearly seven million jobs since December 2007. Through February 2009, state and local governments added 128 thousand jobs, and since the stimulus was enacted, those have shed 7 thousand jobs.

The Bush Administration was not any better. Bent on tax cuts, it did nothing to fix health care—its prescription drug plan drove up costs for most Americans—and it ignored pressing environmental issues.

When those who govern view those who disagree with them as “evil mongers,” in the words of Senate Majority Leader Harry Reid, they become blind to facts and deaf to reason.

Democrats appear to be girding to push through health care reform without the features moderate voters want. After that, perhaps cap and trade and more stimulus spending.

Moderate voters won’t be happy. Factor in unemployment around 10 percent, and the Democrats’ grip on Congress may fall sooner than pundits believe possible.

White House Blog  --  Why We Need a Reality Check

Finfacts report: Obama administration signalls rowback on "socialized medicine" - -  includes OECD data on member country health care costs.

Peter Morici,

Professor, Robert H. Smith School of Business, University of Maryland,

College Park, MD 20742-1815,

703 549 4338 Phone

703 618 4338 Cell Phone




Related Articles
Related Articles

© Copyright 2010 by Finfacts.com

Top of Page

Latest Headlines
Disastrous 44-year War on Drugs and ignoring the evidence
HSBC & Tax Evasion: France/ Belgium issued criminal charges; UK/ Ireland nothing
Analysis: Germany world's top surplus economy; UK tops deficit ranks
Facts do not always change minds - can even entrench misinformed
Finfacts changes from 2015
Facts of 2014: Guinness not Irish; 110 people own 35% of Russia's wealth
In defence of dissent and Ireland's nattering nabobs of negativism
Dreams of European Growth: France and Italy facing pre-euro economic problems
Globalization's new normal needs permanent underclass - Part 1
MH17 and Gaza: who is responsible?
Israel vs Palestine: Colonization set for major expansion
Aviva Ireland's 'fund' runs dry and life cover to die for
We wish Martin Shanahan - new IDA Ireland chief - well but...
Ireland as an Organised Hypocrisy is in lots of company
Dr Peter Morici: Friday’s US jobs report won’t alter Fed plans to raise interest rates
Own Goal: Could FIFA have picked worse World Cup hosts?
Ireland: Spin and spending will not save bewildered Coalition
Irish Government parties set for 2-year vote buying spending spree
European Parliament: Vote No. 1 for Diarmuid O'Flynn in Ireland South
Dr Peter Morici: US April jobs report may show 215,000 added in April
Dr Peter Morici: Hardly time to call Obamacare a success
Celtic Tiger RIP: Change in conservative Ireland six years after crash
Dr Peter Morici: Five things to know about the Fed’s obsession with inflation
In age of acronym/ Google, Trinity to rebrand as 'Trinity College, the University of Dublin’
Hoeness case part of ‘painful’ change for Swiss bankers
Dr Peter Morici: The Cold War was only on vacation
Dr Peter Morici: US economy drags on Obama's approval ratings; Don’t look for changes in Washington
Dr Peter Morici: Bitcoin debacle shatters the myth of virtual money
Dr Peter Morici: US Tax Reform: Eliminate the income tax and IRS altogether
Wealth threatens the simple life in Gstaad, Switzerland
Irish journalists get cash payouts over 'homophobic' defamation claim
Irish academics get lavish pension top-ups as private pensions struggle
Dr Peter Morici: Inequality is President Obama’s highest priority, but solutions are naive
The Finfacts Troika: Better times ahead and a hangover to forget?
Dr Peter Morici: Volcker Rule arrives with the hidden jewel in Dodd-Frank financial reforms
Ireland's toothless fiscal watchdog threatens to bark
Analysis: Germany's current account surplus - - Part 2
The end of western affluence?
Bono's hypocrisy on Africa, corporate tax avoidance in Ireland
France like Ireland is run for the benefit of the old