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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. She is currently on leave.
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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.

Why Health Care Reform Is So Troubled

By Megan McArdle
Jul 21 2009, 9:16 AM ET Comment

The commenters in Mark Thoma's threads seem to think that the administration erred in trying to modify the plan in order to buy votes in Congress.  I take this as symptomatic of how the debate played out on progressive blogs, magazines, and columns; Paul Krugman is exhibit A.  People were led to expect that Obama could pass a plan through mere force of will, "cracking heads" and bulldozing Congress into something close to the left-wing technocratic version of health care reform.



This was never, ever going to happen.   The Democratic conventional wisdom, true or not, is that Bill Clinton lost because the overwhelming majority of folks who have insurance, and are basically satisfied with their health care, freaked out when they realized that their coverage was going to change.  The Clinton administration argued to no avail that it would change for the better; people are risk averse, and too many of them simply didn't trust the government with their own health care.  So the kind of massive grotting around with the innards of the health care system that progressives envisioned was DOA.  And so was the best hope for cost control.

The commenters also believe that the Blue Dog fascination with budget deficits is ridiculous, since it's a small part of the overall budget for the 10 year period.  This ignores the fact that this "small" deficit persists even after the Democrats have used their most politically popular arsenal.  A surtax that will bring the total tax increase on very high incomes to 10%, plus smaller increases below that.  And this assumes that all the cost savings planned will materialize.  Much has been made of the government's ability to batter down prices.  But in fact Congress has a history of passing health care cuts and then undoing them.  Cat care is one example.  There's also the automatic cuts in physician reimbursement, which are ritually repealed in an annual kabuki ritual, because physicians say that they will stop taking Medicare, and/or voting for politicians who support the reimbursement cuts.  What happens if cost growth exceeds projections, the way it has in Massachussetts, and AFAIK, every Federal health care program ever?  Where do we get more money?

A lot of people seem to have thought they were going to get a bill designed by wonks, instead of an ugly and self-interested political process.  Obama's tried to avoid Clinton's fate by staying out of the fray, which has only made the bill even worse.  If Democrats want national health care, they need fewer wonks, and more Lyndon B. Johnsons.

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