Obama's Katrina

A mostly political Weblog.
June 30 2008 6:46 PM

Obama's Katrina

Plus: Does McCain want a convention fight?

(Continued from Page 5)

Save the Seal! "A one-time seal for a one-time event."  ... P.S.: I should add that the faux seal was a disaster not just for the reason I gave (that it suggested Obama is "stuck up"). It also carried this counterproductive connotation: that there is a separate Obama Nation, grown up in opposition to Bush's nation. Obama Nation has its own insignia and its own reality. It is somewhat alarmingly devoted to its leader. And this blue tribe is about to completely conquer the current ruling red tribe. ... Voters didn't much like this kind of  revolutionary swagger in the 1960s. They may not like it now. . 8:25 A.M. link

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Saturday, June  21, 2008

The "progressive" netrootsy left often discounts the importance of welfare reform. Worrying about welfare--that's outdated '90s neoliberal thinking! But when Democrats want to actually get elected, as opposed to blogged, what issue do they emphasize?

"That's why I passed laws moving people from welfare to work ..."-- Barack Obama, in his first post-primary TV ad.

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3:17 P.M.

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Is Obama's new faux-presidentialalternative-reality seal his "Mission Accomplished"? If you wanted to emphasize to voters that the Democrats' nominee is a bit stuck up, it would be hard to do better. I suppose he could start requiring reporters to stand when he enters the room. ... The seal probably started out as a bit of fun. But unless David Axelrod is insane, the thing will never be seen again. .. 2:15 A.M. link

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A few responses to criticisms of Wednesday's exciting Social Security item:

-- Andrew Biggs questions  whether Social Security's "work test"--you only get it if you've worked--would "keep a more progressive Social Security program from being seen as welfare." He notes that the Earned Income Tax Credit also goes only to workers, and asks "does a work test keep the EITC from being seen as welfare?" The answer is yes! The EITC helps only the poor and yet remains very popular (despite occasional criticism from the right). Even Biggs concedes "the EITC has fared much better than welfare programs without a work test."  He needs a better counterexample.

-- Ramesh Ponnuru, citing Biggs, says a "means test"--reducing or eliminating the benefits of seniors who don't need them when they become eligible--would discourage savings. He and Biggs propose instead fiddling with benefit schedules so that high earners earn lower benefits --but they'd get to keep those benefits whether they retire poor (having failed to save) or retire rich. The Pozen Plan, endorsed by President Bush, is one way to gradually adjust benefit schedules in this fashion.

The Pozen Plan is fine if all you want to do is balance the books on the current Social Security system. It falls short if you want to go further and actually shrink Social Security by a few hundred billion in order to make room in the budget for, say, universal health insurance. Then you need to do something more dramatic, like eliminating--not reducing--benefits for the richest 25% of retirees. They did it in Australia. It worked. (I'd be interested to learn if Australia's means-test had any effect on savings.)

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