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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

I do not think that word means what you think it means

By Megan McArdle
Nov 16 2007, 7:16 AM ET Comment

Sayeth the Wall Street Journal:

MEANS-TESTING GAINS in both parties as long-term entitlement fix.

Republican Sen. Ensign of Nevada pushes plan to charge affluent beneficiaries more for Medicare prescription-drug coverage. "It makes no sense for Bill Gates's father to have his prescription drugs paid for by a schoolteacher or a firefighter or a police officer," the senator says.

Though he hasn't yet attracted majority support -- much less the 60 votes needed to overcome a Senate filibuster -- his approach mirrors a presidential campaign push by Democrats Obama and Edwards on Social Security. They would bolster solvency by taxing the wealthiest more, while exempting those with incomes of between $97,000 and $200,000.


It is very uncommon to refer to increases in the income tax--which is essentially what Obama favors--as means testing.

Personally, I think means testing is long overdue, but by itself, it won't do that much to solve the problem. A super-agressive tax increase might put Social Security on an actuarially sound basis for years to come, but if you want to concentrate them on very wealthy families, as Democrats do, you're talking increases in the ugly area of the Laffer Curve just to fix one old-age program--leaving the bigger problem, Medicare, untouched.

Similarly, means-testing Medicare is a fine idea, but the proposals generally involve bouncing only a very small cost reduction. Medicare is even less amenable to means-testing than Social Security, because the benefits aren't tied to income. You don't consume twice as many drugs just because you're rich*, so bouncing the relatively small number of rich people out of the programme produces a correspondingly small decrease in the bill.



*Well, unless you happen to live in certain parts of Florida, but even there, unnecessary surgeries and tests are more the done thing

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