Wedekind on Trump’s Reform of Medicare

Accountable Care Organizations are President Obama’s attempt at stealth privatization — 10.4 million people think they are in a fee-for-service system, when in reality their doctors have economic incentives to reduce care. And it has been illegal for doctors to inform their patients of this fact. John Goodman and Laurence Wedekind explain the development and what Medicare director Seema Verma is doing about it.

Kotlikoff: Optimal Retirement Planning

Breakthrough in Retirement Planning

Why do people save for retirement? Or buy life insurance? Or home owners and other kinds of insurance? In all cases the objective is the same: to smooth out life time consumption. We don’t want our normal consumption of goods and services to be interrupted by retirement or the myriad accidents that could befall us.

In the face of cash constraints, job market uncertainty and other uncertainties planning is very difficult, however. And it isn’t helped much by conventional financial advice. New breakthroughs in computer programming by Prof. Laurence Kotlikoff help solve these problems. More.

Cato Celebrates 25 years of Patient Power

The Cato Institute hosted a celebration of a book John Goodman and Gerald Musgrave a quarter a century ago. Commenters included Sen. Bill Cassidy, MD, (R-LA); Paul B. Ginsburg, Leonard D. Schaeffer Chair in Health Policy Studies, Brookings Institution; and David A. Hyman, Coauthor, Overcharged; Professor of Law, Georgetown University; and Michael F. Cannon, Director of Health Policy Studies, Cato Institute.

Here is the video. Goodman gives a ten-minute overview beginning at about 27:45

Goodman on AOC and Paul Krugman

If AOC is the voice of the left, New York Times writer Paul Krugman is its brain. But here is the catch. Krugman rarely ever attempts to introduce readers to the economic way of thinking. Day after day, in column after column, he reinforces the view that left-wingers don’t need to read textbooks or study economic models. Their gut instincts will do just fine.

Click here to read more.

Kotlikoff: Tax Reform in Red and Blue

A new study shows that the benefits of tax reform vary widely – and the most important reason is a new $10,000 limit on itemized deductions for state and local taxes. As a result, high-tax states which tend to be Democratic had smaller gains than low tax states which tend to be Republican. For example, Among the 12 states where the average household has the smallest gain from tax reform, 10 are reliably blue states in presidential elections. Among the 10 states where the average household had the highest gains from tax reform, half are reliably red states in presidential elections. Click here to read more.