Six Wasted Syllables (for Paul Price)

On the Atlantic's Business Channel, Chris Good posts about the return of Bobby Jindal, noting that, given his expertise in health care policy, Jindal has taken advantage of the current debate over President Obama's proposed health care reform to tiptoe back into the national spotlight, now that memories of his awful response to the President's speech have faded. Good also links to Jindal's op/ed about health care policy in today's Wall Street Journal, "How to Make Health-Care Reform Bipartisan". One paragraph from Jindal's op/ed prompted the title of this post:

•Refundable tax credits. Low-income working Americans without health insurance should get help in buying private coverage through a refundable tax credit. This is preferable to building a separate, government-run health-care plan.

What would William Strunk, Jr. have called "refundable tax credits", if such a thing existed in his time? I'm guessing he'd call them what they are: "grants". I'm not sure why Jindal and other conservatives persist in wasting an additional six syllables on the longer euphemism. Perhaps it's so they can characterize government spending on such grants as tax relief instead of government spending, but, if so, this bit of obfuscation just plays into liberals' rhetoric on progressive tax policy. Most liberals are happy to characterize transfer payments to low-income Americans as tax relief, and to characterize tax cuts for the wealthy as a form of government spending. There doesn't seem to be much benefit to conservatives in conceding the rhetorical and policy ground on this, particularly since, as some smart centrists (e.g., Clive Crook) and even at least one smart liberal (Matt Yglesias) acknowledge, we are approaching the point of diminishing returns when it comes to increasing the progressivity of our tax system.

As both men have noted, if American liberals want to expand the welfare state raising taxes on the rich, by itself, won't be enough to pay for it; they'll have to raise taxes (by at least a modest amount) on everyone else. Yglesias has noted that countries such as Sweden, which have social safety nets envied by American liberals, also have much more regressive taxes than we do.

Where Left-Leaning Pundits and Bloggers Compare Notes

Interesting piece by Michael Calderone on The Politico yesterday, on how liberal commentators compare notes and hone their message, "JournoList: Inside the Echo Chamber". A few brief excerpts follow.

For the past two years, several hundred left-leaning bloggers, political reporters, magazine writers, policy wonks and academics have talked stories and compared notes in an off-the-record online meeting space called JournoList.

Proof of a vast liberal media conspiracy?

Not at all, says Ezra Klein, the 24-year-old American Prospect blogging wunderkind who formed JournoList in February 2007. “Basically,” he says, “it’s just a list where journalists and policy wonks can discuss issues freely.”

[...]

Last April, criticism of ABC’s handling of a Democratic presidential debate took shape on JList before morphing into an open letter to the network, signed by more than 40 journalists and academics — many of whom are JList members.

POLITICO contacted nearly three dozen current JList members for this story. The majority either declined to comment or didn’t respond to interview requests — and then returned to JList to post items on why they wouldn’t be talking to POLITICO about what goes on there.

In an e-mail, Klein said he understands that the JList’s off-the-record rule “makes it seems secretive.” But he insisted that JList discussions have to be off the record in order to “ensure that folks feel safe giving off-the-cuff analysis and instant reactions.”

One byproduct of that secrecy: For all its high-profile membership — which includes Nobel Prize-winning columnist Paul Krugman; staffers from Newsweek, POLITICO, Huffington Post, The New Republic, The Nation and The New Yorker; policy wonks, academics and bloggers such as Klein and Matthew Yglesias — JList itself has received almost no attention from the media.

A LexisNexis search for JournoList reveals exactly nothing. Slate’s Mickey Kaus, a nonmember, may be the only professional writer to have referred to it “in print” more than once — albeit dismissively, as the “Klein Klub.”

[...]

“You don’t want to create a whole separate, like, private blog that only the elite bloggers can go into, and then what you present to the public is sort of the propaganda you’ve decided to go public with,” Kaus argued.

The illustration above, by Matt Wuerker, accompanied Calderone's piece on The Politico.

The Pain in Spain

The Times of London reports that, as the unemployment rate has reached 14.4% in Spain in the wake of the real estate bust there, more housewives are turning toward prostitution to make ends meet ("Few jobs and little hope as Spain faces growing crisis" -- Hat tip, Matthew Yglesias). In his post on this on his Think Progress blog, Yglesias notes that, in pre-Euro recessions, Spain had the option of devaluing its currency, which would stimulate its economy by making Spanish exports more attractive. An article by Edward Chancellor in today's Financial Times elaborates on the role the Euro is playing in the current crisis ("EMU on the rocks and all exits closed"). Below are a few excerpts from it.

The euro was created to bring economic stability to Europe. However, the politicians who promoted European Monetary Union ignored inherent flaws in the project. The credit crisis has exposed these flaws. As a result, a number of the weaker eurozone members are facing severe deflation and a quite desperate economic outlook.

The leading European politicians behind the euro project, such as former French president Francois Mitterrand, weren’t much interested in economics. In a new book, The Euro: The Politics of the New Global Currency (Yale) David Marsh shows how these politicians brushed aside the concerns of their advisers as they rushed eagerly towards monetary union. Mr Mitterrand’s vision for the single currency, says Mr Marsh, was “based on emotion, psychology and wishful thinking” rather than rational economics.

It was hoped that the euro would bring faster and more stable economic growth, while exporting Germany’s record of price stability to other members of the single currency. But many potential economic problems with European Monetary Union were identified decades ago. In 1973 Derek Mitchell, a British Treasury official, observed that the loss of exchange rate flexibility would remove a simple method for rectifying imbalances between Europe’s economies. Without the option of exchange rate depreciation, once imbalances appeared “equilibrium could only then be restored”, declared Mr Mitchell, “by inflation in the ‘high performance’ countries and unemployment and stagnation in the ‘low performance’ countries, unless central provision is made for the imbalances to be offset by massive and speedy resource transfers”.

It's worth reading the rest of Chancellor's article. He goes on to argue that the euro is playing a similarly deflationary role today as the gold standard did in the 1930s, but that it would be more difficult for euro-zone countries to extricate themselves from the euro than it was to drop the gold standard.

The photo above, of the Spanish royal family in better times, comes from King Juan Carlos's website.