By Arnold Kling
“I don’t want to see revenue as a percentage of GDP be much higher than 21%,” Bowles said. “At the same time we have to work to make the tough choices to bring spending down to the same level, to about 21% of GDP. … None of this is going to be easy.”
That is Erskine Bowles, co-chairman of President Obama’s deficit commission. He understands that this requires serious cutbacks in entitlements. The question is what this means for health care policy.
a) magical thinking (the current approach)
b) rationing (not an easy sell in our culture)
c) greater use of vouchers in Medicare and Medicaid, and more personal responsibility for health care spending in general
On the off chance that the commission pushes the Obama Administration in the direction of (c), I would then argue that the net effect would be to have revived neoliberalism.