Tuesday, June 13, 2006

New New Deal is Old, Old Deal

E J Dionne tries his hand at economics in today's Washington Post with predictable results. Union jobs are flowing out of the economy and he thinks his political party needs to do something about job creation.

This week's UAW meeting is simply the most obvious harbinger: The old bargain is breaking down and is in urgent need of renegotiation. The most promising place to start would be in reforms of the areas where the old bargain worked best: health, retirement and schooling.
Let's see here, the problem is the lower cost of labor in foreign countries and the solution is increasing the cost of labor here in the US?

Health care is paid for by taxes or directly by the companies. Taxes come from people and companies. The end effect of "reform" will be to increase the costs of doing business in the US. If you don't believe this, just try imagining a reform where the benefits shrink. Dittos for retirement, which is killing several large, industrial companies here in the US and the horrific public education establishment.

E J, why don't you stick to what you know?

Just what is that, anyway?

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