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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.

Health Care Reform Starts Looking Like an Established Fact

By Megan McArdle
Sep 18 2009, 1:57 PM ET Comment

I now put the chances of a substantial health care bill passing at 75%, and the chances of the Democrats losing the house in 2010 at about 66%.

Replacing Ted Kennedy is major, of course, but the real game changer is that the CBO is willing to score health care savings on the grounds that the bill contains automatic spending cuts. 

Conservatives are filled with rage and anguish.  The spending cuts, they argue, mostly will not be done, which means that this bill is going to cost hundreds of billions more than its proponents claim.  They are absolutely right:  the savings cuts will not be made, and I doubt that many in the Democratic party leadership, or the liberal wonkosphere believe that they will.

But I'm not sure what good it does to protest this.  That's the way the system works.  The fact that the CBO has minimal discretion and uses roughly the same standards for every analysis is, despite its problems, a feature rather than a bug.  We may not like the fact that the CBO scores what's in the law, rather than what is most likely to happen.  But the alternative is what?  An agency that can give the thumbs up or thumbs down according to how it feels about the legislators?

I assume that the CBO is going to score all these largely imaginary savings, and that this will make it very hard to keep the bill from passing, because legislators are, natch, more concerned about the appearance of fiscal rectitude than actual conservative budgeting.  Conservatives can, and should, raise the reasons to believe that htis bill will cost more than its CBO score allows.  But frankly, the public is probably going to accept the CBO numbers.

I think that ramming through the bill on a party line vote makes it very likely that the Democrats will lose the house in 2010; the American public doesn't like uniparty votes, especially on something this controversial.  A lot of liberals have gotten angry at me for saying this, but it's not a normative statement; it's an observation.  IF the Republicans had been willing to push forward on a controversial bill with no Democratic cover, we'd have private social security accounts right now.  But they weren't, for a reason. 

But if I were a Democrat, I'd take that bet.  What's the point of electing Democrats if you can't get national health care passed?  If Republicans were smart, they'd find a couple of Democratic senators from swing states and pound the Teddy Kennedy rule change until they forced one of them to sit out the cloture vote.  But I'm not exactly holding my breath on a resurgence of Republican strategic brilliance.

No, I think that for those of us who were opposed to this bill, it's game--almost--over.  This isn't exactly surprising; Democrats have a commanding lead in the house and the Senate, and now they have the presidency too.  If public opinion on this thing craters again, I'll reassess.  But for now it looks like it's time to start preparing for an ambitious health care reform, and all the dislocations, and the budget crisis that we now have even less ability to aver.


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