Matthew Yglesias » McCain: I’ll Make Health Care As Deregulated As Banking

Sep 20th, 2008 at 4:16 am

McCain: I’ll Make Health Care As Deregulated As Banking

Great find. It seems that before John McCain became the Scourge of Wall Street (i.e., all times before September 18, 2008 or so) he was such an enthusiast about financial market deregulation that he was bragging about his plan to make the health care system as awesome as the financial system. Here’s what he write this month:

Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation.

Times change, I guess. On the merits, eliminating the “burdens” and “excesses” of regulation in the health care context means, in practice, that McCain would reduce health insurance costs by reduce the scope of health insurance coverage. And, yes, obviously a policy that covers less stuff will cost less. But that’s not a real plan to help anyone.

Comments
39

39 Responses to “McCain: I’ll Make Health Care As Deregulated As Banking”

MikeS Says:
September 20th, 2008 at 4:32 am
Check again. That’s not from September 2007. It’s September/October 2008 issue.
MikeJ Says:
September 20th, 2008 at 5:25 am
McCain’s combination of deregulation with making it harder to redress wrongs in court means that even if you could afford a doctor you might not want to see one.
Haukur Says:
September 20th, 2008 at 5:55 am
I seem to remember Matt saying quite similar things himself. Let’s see, ah, how about this:

“It ought to be quite cheap to get a basic tooth cleaning or medical checkup or secure a routine diagnosis and prescription. But it’s generally not because entrepreneurship in medical services is strongly discouraged by the current rules, the law tends to require full-fledged doctors and dentists in situations where they’re not needed”
joejoejoe Says:
September 20th, 2008 at 5:57 am
Here’s McCain’s first answer to the just released Science Debate 2008 candidate questionaire:

Q1. Innovation. Science and technology have been responsible for half of the growth of the American economy since WWII. But several recent reports question America’s continued leadership in these vital areas. What policies will you support to ensure that America remains the world leader in innovation?

A1. McCain: I have a broad and cohesive vision for the future of American innovation. My policies will provide broad pools of capital, low taxes and incentives for research in America, a commitment to a skilled and educated workforce, and a dedication to opening markets around the globe. I am committed to streamlining burdensome regulations and effectively protecting American intellectual property in the United States and around the globe.

The guy loves deregulation for everything except boxing. He’s a boxing socialist (for regulation, for unions).

OT – Is this part of McCain’s answer to the Innovation question…uh…true?

McCain: Under my guiding hand, Congress developed a wireless spectrum policy that spurred the rapid rise of mobile phones and Wi-Fi technology that enables Americans to surf the web while sitting at a coffee shop, airport lounge, or public park.

John McCain is responsible for Wi-Fi in Starbucks? Elitist!
bob h Says:
September 20th, 2008 at 7:03 am
The only explanation I can come up with for all this nuttiness is that in seeking the support of and pandering to the prejudices of the Republican base, a willfully ignorant group who do not know how to think critically, Republican candidates quickly lose the ability to think critically themselves. Facts and logic cease to matter; only prejudices matter.
Becca Says:
September 20th, 2008 at 8:49 am
It’s very doubtful that Mac would throw the centerpiece of Reaganomics under the bus in practice. It’s a religion to him.
LittleMac Says:
September 20th, 2008 at 9:11 am
I seem to remember Matt saying quite similar things himself. Let’s see, ah, how about this:

I seem to remember some troll trying to pass of a quote from Matt about unnecessary guidelines that “require full-fledged doctors and dentists in situations where they’re not needed” driving up health care costs as being somehow the same as John McCain wanting to deregulate the health insurance market, despite the fact that any idiot can see how those two things are completely unrelated.
jimbo Says:
September 20th, 2008 at 9:21 am
I wish somebody would ask McCain why ordinary Americans can’t have access to the same kind of health care he does. We wouldn’t get a good answer, but it might anger or confuse him.
J Mac Says:
September 20th, 2008 at 9:28 am
I wish somebody would ask McCain why ordinary Americans can’t have access to the same kind of health care he does.

Shut up, you little jerk!
Freedom Fry Says:
September 20th, 2008 at 9:31 am
I can totally see McCain going out there and saying he’s always been for universal healthcare. In fact, without his guiding hand, Medicare and Medicaid would never have been possible. He was a POW you know, he knows what it’s like not to have proper healthcare.
James Gary Says:
September 20th, 2008 at 9:50 am
I can totally see McCain going out there and saying he’s always been for universal healthcare.

If the price of getting universal healthcare is allowing John McCain to save face, then I say we pay it.
Thomas Says:
September 20th, 2008 at 9:53 am
Now Riegle-Neal is the cause of our financial crisis? Or is Matt again talking about things he doesn’t know anything about?

Matt, you made a decision years ago that understanding these things wasn’t worth your time–finance was for the philistines. That’s fair. But it means you haven’t a clue what you’re talking about.
Duncan Kinder Says:
September 20th, 2008 at 10:07 am
obviously a policy that covers less stuff will cost less.

When it comes to medical expenses, a policy that covers less nevertheless can still cost more.
lfv Says:
September 20th, 2008 at 10:34 am
Can I just be a little serious here and say that when John McCain was a POW, he didn’t have access to a nationwide non-group market for purchasing health insurance.
Dave Says:
September 20th, 2008 at 10:46 am
Just how easy is it for Phil Gramm to scam McCain?
JonF Says:
September 20th, 2008 at 10:54 am
Righwtingers regularly charge that a nationalized or even universalized system would choke off healthcare innovation because it would restrict the flow of money into healthcare. But rightwing “free market” reforms would have the same exact effect, assuming they worked as advertized. Any policy whatsoever that gets a handle on healthcare inflation will throttle back on healthcare R&D since there will be less money for healthcare firms to spend.
Ephus Says:
September 20th, 2008 at 11:03 am
Beyond McCain’s comments being very stupid, they also are an attack upon the GOP issue of “states’ rights”/federalism. Until now, insurance regulation has been the province of the states. McCain wants to blow that up, allowing an insurer licensed in one state to issue policies in another.

This is a truly horrible idea for the country, and would cause a race to the bottom. If California has a reasonsible insurance commissioner who demands that insurance companies be adequately capitalized, right now insurance companies must comply if they wish to compete for California policyholders. But, if McCain’s plan were to be adopted, one lax insurance commissioner (say in Idaho or Alaska) would set the floor for the entire nation. In addition, there would be a strong financial incentive for each state to make their regulations as loose as possible, in order to encourage insurance companies (and the billions of dollars in assets that they control) to locate in that state.

McCain’s prescription for healthcare is a recipe for yet another disaster.
Not as stupid as Thomas Says:
September 20th, 2008 at 11:41 am
Thomas, you total fucking idiot, you were yammering on about Iraq where you obviously knew nothing and now you are taking Matt to task for another area where you know nothing? Here, in fact, you don’t even bother to have a critique, just empty insults. I would refute your points instead of insulting you, but you didn’t bother to make any you witless jackass.

Please make your ignorance less obvious.
Thomas Says:
September 20th, 2008 at 11:50 am
Stupid, I’m guessing you’re in the same boat as Matt. Listen, it isn’t my fault that you didn’t care about these issues until the day before yesterday.

The regulatory reform that McCain references isn’t controversial–or, at least, it wasn’t until today, when a few idiots decided to make it controversial. Now, to be fair to Matt, he has other interests, and besides, he’s like 12 years old, so reforms that happened in the early 90s are way before his time. But that’s not an excuse for pontificating as Matt does here.
rfv Says:
September 20th, 2008 at 12:27 pm
The great thing about Thomas and his friends is they have no idea how hilariously entertaining they are. As with Iraq, so with the current economic implosion. They always have the same plan:

1. Be incredibly condescending toward people warning they’re creating a disaster on a gigantic scale.

2. Create disaster on a gigantic scale.

3. Be incredibly condescending toward people who warned they were creating a disaster on a gigantic scale.

There’s no amount of suffering and catastrophe that Thomas could generate for America that would make his doubt his own competence and knowledge.

So while we do have the downside of the suffering and catastrophe, we do have the upside of ridiculing Thomas. He twists and turn, unable to see where the laughter is coming from, or the “Kick Me” sign that he’s unknowingly taped to the back of his shirt.
Thomas Says:
September 20th, 2008 at 12:33 pm
rfv, I’m sorry, are you saying that the current financial crisis has its roots in an act passed in 1994? That the Democratic Congress and Bill Clinton were responsible for this? If it weren’t such a ridiculously stupid talking point, I’d agree with it for purely partisan purposes.
rfv Says:
September 20th, 2008 at 12:39 pm
Why are they LAUGHING at me, Thomas wondered. They’re all pointing and laughing!

Thomas’s lower lip quivered, as he struggled to hold in the tears. I won’t cry, he told himself. Not this time!
Thomas Says:
September 20th, 2008 at 12:46 pm
Oh, I get it all right. You’re a monkey throwing shit. Look at the monkeys throwing their shit! Put your ass in their air rfv. Good monkey.

Very intellectual place here, Matt.

Back to the shit-throwing.
rfv Says:
September 20th, 2008 at 2:27 pm
Thomas the tiny howler monkey had spent fifteen years throwing shit at whomever the alpha howler monkey told him to throw shit at. In return, the alpha howler monkey gave Thomas a little portion of food. This was a good deal for Thomas, who, truth be told, was somewhat retarded, even for a monkey.

When the alpha monkey had decided to set the forest on fire, and everyone said that was a terrible idea, Thomas’s job was to throw shit at them. When the alpha monkey had decided to poison the lake everyone drank from, and everyone said THAT was a terrible idea, Thomas’s job was throw shit at them too.

Finally, everyone figured out where the shit was coming from. They looked at this sad little howler monkey, still furiously throwing shit, even though he himself had now forgotten why. They all pointed at Thomas and started laughing.

Stop it! screeched Thomas, in his high-pitched howler monkey voice. Stop throwing shit at me! This is supposed to be an INTELLECTUAL forest!!!

Thomas burst into tears.
El Cid Says:
September 20th, 2008 at 2:45 pm
The deregulation that directly precipitated this crisis was Phil Gramm’s budget addition from December of 2000, two days after Bush V. Gore gave us the bestest unelected Preznit evar.

The deregulation which ensured that the consequences of the December 2000 deregulation could spread catastrophically was Phil Gramm’s 1999 bill to end Glass-Steagall.

From “Foreclosure Phil,” David Corn, Mother Jones

…Gramm’s most cunning coup on behalf of his friends in the financial services industry—friends who gave him millions over his 24-year congressional career—came on December 15, 2000. It was an especially tense time in Washington. Only two days earlier, the Supreme Court had issued its decision on Bush v. Gore. President Bill Clinton and the Republican-controlled Congress were locked in a budget showdown. It was the perfect moment for a wily senator to game the system. As Congress and the White House were hurriedly hammering out a $384-billion omnibus spending bill, Gramm slipped in a 262-page measure called the Commodity Futures Modernization Act. Written with the help of financial industry lobbyists and cosponsored by Senator Richard Lugar (R-Ind.), the chairman of the agriculture committee, the measure had been considered dead—even by Gramm. Few lawmakers had either the opportunity or inclination to read the version of the bill Gramm inserted. “Nobody in either chamber had any knowledge of what was going on or what was in it,” says a congressional aide familiar with the bill’s history.

It’s not exactly like Gramm hid his handiwork—far from it. The balding and bespectacled Texan strode onto the Senate floor to hail the act’s inclusion into the must-pass budget package. But only an expert, or a lobbyist, could have followed what Gramm was saying. The act, he declared, would ensure that neither the sec nor the Commodity Futures Trading Commission (cftc) got into the business of regulating newfangled financial products called swaps—and would thus “protect financial institutions from overregulation” and “position our financial services industries to be world leaders into the new century.”

It didn’t quite work out that way. For starters, the legislation contained a provision—lobbied for by Enron, a generous contributor to Gramm—that exempted energy trading from regulatory oversight, allowing Enron to run rampant, wreck the California electricity market, and cost consumers billions before it collapsed. (For Gramm, Enron was a family affair. Eight years earlier, his wife, Wendy Gramm, as cftc chairwoman, had pushed through a rule excluding Enron’s energy futures contracts from government oversight. Wendy later joined the Houston-based company’s board, and in the following years her Enron salary and stock income brought between $915,000 and $1.8 million into the Gramm household.)

But the Enron loophole was small potatoes compared to the devastation that unregulated swaps would unleash. Credit default swaps are essentially insurance policies covering the losses on securities in the event of a default. Financial institutions buy them to protect themselves if an investment they hold goes south. It’s like bookies trading bets, with banks and hedge funds gambling on whether an investment (say, a pile of subprime mortgages bundled into a security) will succeed or fail. Because of the swap-related provisions of Gramm’s bill—which were supported by Fed chairman Alan Greenspan and Treasury secretary Larry Summers—a $62 trillion market (nearly four times the size of the entire US stock market) remained utterly unregulated, meaning no one made sure the banks and hedge funds had the assets to cover the losses they guaranteed.

In essence, Wall Street’s biggest players (which, thanks to Gramm’s earlier banking deregulation efforts, now incorporated everything from your checking account to your pension fund) ran a secret casino. “Tens of trillions of dollars of transactions were done in the dark,” says University of San Diego law professor Frank Partnoy, an expert on financial markets and derivatives. “No one had a picture of where the risks were flowing.” Betting on the risk of any given transaction became more important—and more lucrative—than the transactions themselves, Partnoy notes: “So there was more betting on the riskiest subprime mortgages than there were actual mortgages.” Banks and hedge funds, notes Michael Greenberger, who directed the cftc’s division of trading and markets in the late 1990s, “were betting the subprimes would pay off and they would not need the capital to support their bets.”

These unregulated swaps have been at “the heart of the subprime meltdown,” says Greenberger. “I happen to think Gramm did not know what he was doing. I don’t think a member in Congress had read the 262-page bill or had thought of the cataclysm it would cause.” In 1998, Greenberger’s division at the cftc proposed applying regulations to the burgeoning derivatives market. But, he says, “all hell broke loose. The lobbyists for major commercial banks and investment banks and hedge funds went wild. They all wanted to be trading without the government looking over their shoulder.”
Not as stupid as Thomas Says:
September 20th, 2008 at 5:03 pm
That wasn’t nice El Cid. Posting facts will ruin Thomas the clueless fucking moron’s day. After all, if he can’t blindly attack those who are smarter than a howler monkey, he will have nothing to say.

What is is that causes Republicans to be so monumentally stupid? Is it some sort of degenerative disease that takes hold once you vote for a cretin like Bush? Is it really possible that Thomas is as stupid as his posts make him out to be?
rfv Says:
September 20th, 2008 at 5:17 pm
Is it really possible that Thomas is as stupid as his posts make him out to be?

Sure. Authoritarian political movements tend to attract the stupid. If you went to East Germany fifty years ago, you would have found that the mid-level of the communist party was filled with people like Thomas, all mindlessly sneering at anyone who doubted the Obvious Truth of Marxism.
Thomas Says:
September 20th, 2008 at 11:52 pm
rfv, some intern at the Obama camp did a nexis search and they sent out an email to the press and to Matt with a transparently stupid argument, which you all greeted with great joy and find very persuasive. You take orders from an intern, you nitwit.

el cid, at least you’re closer! But unfortunately you aren’t offering any support to Matt’s argument, which is that the Riegle-Neal Act–the act that opened up banking to nationwide, not just intrastate, competition–somehow caused our current financial crisis.
rfv Says:
September 21st, 2008 at 2:19 am
Thomas, well done — I didn’t think you could top yourself, but your idiocy is now EVEN MORE HILARIOUS than before!

I know this is probably beyond your capability, but see if you can figure out why this is.

Hint: it has to do with (1) history, and (2) words, and what they mean.
Matt Says:
September 21st, 2008 at 3:45 am
Did you see the Bunk study stating 2/3 of doctors in America want National Health Care. The doctors who did this study also conducted one in 2002 and found that the majority of doctors did not want national health care, the problem with this is that the 2 question surveys drastically differ in there 2nd question. I found this article, 60% of Physicians Surveyed Oppose Switching to a National Health Care Plan, It’s worth a read.
Thomasj Says:
September 21st, 2008 at 9:55 am
Look–more shit throwing from RFV! Good job you little monkey! Well done! Some of the best shit-throwing we’ve seen all week! Good job, you cute little monkey!
rfv Says:
September 21st, 2008 at 2:51 pm
Thomas, I understand you’re confused and angry because of all the people pointing at you and laughing. But I think you should at least try to have enough dignity to spell your name correctly.
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Matt Yglesias

McCain: I’ll Make Health Care As Deregulated As Banking

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