Friday, November 8, 2019

Moody's Economist Throws Elizabeth Warren Under the Bus

Elizabeth Warren
Mark Zandi, chief economist at Moody’s Analytics, who vouched for Elizabeth Warren’s healthcare reform plan is now telling Reuters that he doubts its staggering cost can be fully covered alongside her other big spending government programs.

He also voiced skepticism that the wealth tax provision in Warren’s plan will produce forecast levels of revenue because those targeted by the tax will seek to dodge it.

“It’s not hard to believe billionaires are going to use every resource to avoid paying the tax,” Zandi said.

Of course,  whether billionaires dodge the tax is a side matter. The bigger problems are that, by making healthcare free to patients, demand will go through the roof which will result in a combination of higher prices not reflected in Warren's plan and long lines for care.

Secondly, the central planning nature of Warren's plan will suffocate innovation in the sector.

It is good to see Zandi throw Warren under the bus but he should back up and drive over her again.


1 comment:

  1. Yes exactly, Robert. I keep asking people why no one thinks the demand curve slopes back up to the left.