. . . and asks "what happened in 1980?" If I had to guess, I'd say "some sort of data discontinuity", but other than that, I don't know.
I do, however, have a plausible candidate for what happened in 1986, when the thing starts rising briskly over a period of years: the Reagan tax simplification. It got rid of a lot of the ability to expense lifestyle enhancements for workers, but left an important one intact: the deduction for health care.
You can argue that the employee health care deduction basically explains the entire cost differential between American systems and the others. Take a look at this graph (you'll have seen some variant of it many times during the health care debate, but I got this particular one from a presentation by Scott Atlas at Hoover last month):
The blue lines show per capita spending; the purple, spending as a percentage of GDP. Now look at that same image, hamfistedly altered by yours truly to show what the graph would look like if the approximately 35% tax subsidy we give to employer health care benefits were withdrawn:
Suddenly, the US isn't really an outlier. We'd still be spending more--but we're richer, and in general, rich countries spend more of their GDP on health care.
Is this dispositive? Hardly. But it's suggestive. And there's some literature to back up effects that are huge, if not quite 35%, like Jonathan Gruber's recent paper.
Naturally, this puts me in mind of Ezra Klein's recent post:
The problem is that Medicare can't control costs too much better than private insurers or, as you see from the article above, doctors will simply abandon Medicare. In a world where there's only Medicare and Medicare decides to control costs, doctors can either take the pay cut or stop being doctors. And as we see from other countries, lots of people want to be doctors, even if being a doctor doesn't make you particularly wealthy. But in a world where Medicare is just one of many payers and Medicare decides to control costs, doctors can simply stop taking Medicare patients and a lot of legislators will lose their jobs.
Given how hard it's proven to tackle the tax subsidy for employer-sponsored insurance, I'm not seeing much of a change any time soon. In fact, a recent post by Austin Frakt suggests that we're expanding it:
Are you getting this? Let me make it clear. The PPACA may make it possible for workers to get the same tax break for purchasing health insurance on the individual market (via an exchange or otherwise) as they would if they bought their employer-sponsored plan (if they're offered one). If this is the case, it removes one huge incentive for maintaining employer-sponsored coverage. With respect to taxation, it levels the playing field between the group and non-group (individual) markets.
There are some economic efficiency arguments for doing this, but it's not going to help us control costs. Perhaps quite the opposite.
It isn’t the only democratic institution that finds itself in danger.
Four years ago, as a speechwriter for President Obama, I commissioned a binder full of women.
A little context. It was the morning of the Al Smith Dinner, the election-year tradition in which both parties’ nominees don white-tie attire and deliver comedy monologues to New York City’s elite. Our opponent, Governor Mitt Romney had recently used the words “binders full of women” while discussing gender parity in government. Eager to mock the clumsy phrase, I asked a staffer on the advance team to put together a prop.
But our binder never saw the light of day. Obama nixed the idea. I remember being disappointed by the president’s decision, and wondering if POTUS was phoning it in. Of the jokes that did make it into the final draft, one in particular stood out for its authenticity.
The easiest way to take down the web is to attack people’s access to it.
For more than two hours on Friday morning, much of the web seemed to grind to a halt—or at least slow to dial-up speed—for many users in the United States.
More than a dozen major websites experienced outages and other technical problems, according to user reports and the web-tracking site downdetector.com. They included The New York Times, Twitter, Pinterest, Reddit, GitHub, Etsy, Tumblr, Spotify, PayPal, Verizon, Comcast, EA, the Playstation network, and others.
How was it possible to take down all those sites at once?
Someone attacked the architecture that held them together—the domain-name system, or DNS, the technical network that redirects users from easy-to-remember addresses like theatlantic.com to a company’s actual web servers. The assault took the form of a distributed denial-of-service attack (DDoS) on one of the major companies that provides other companies access to DNS. A DDoS attack is one in which an attacker floods sites “with so much junk traffic that it can no longer serve legitimate visitors,” as the security researcher Brian Krebs put it in a blog post Friday morning.
The candidates are back on the campaign trail, following the third, and final, debate on Wednesday night.
It’s Friday, October 21—the election is now less than three weeks away. Donald Trump and Hillary Clinton are back on the campaign trail to deliver their final pitch to voters, ahead of Election Day. We’ll bring you the latest updates from the trail, as events unfold. Also see our continuing coverage:
AT&T is reportedly in advanced talks to buy Time Warner, South Africa says it will leave the ICC, ISIS attacks Kirkuk, and more from across the United States and around the world.
—The Wall Street Journal is reporting that a deal for AT&T to buy Time Warner could come as early as this weekend. More here
—South Africa has notified the UN that it is withdrawing from The Hague-based International Criminal Court. A government minister said South Africa didn’t want to carry out ICC arrest warrants against other African leaders—warrants, he said, that would lead to “regime change.” More here
—ISIS, under sustained attack in its last major Iraqi stronghold, Mosul, attacked the city of Kirkuk. At least 19 people are dead in the attacks. More here
Science says lasting relationships come down to—you guessed it—kindness and generosity.
Every day in June, the most popular wedding month of the year, about 13,000 American couples will say “I do,” committing to a lifelong relationship that will be full of friendship, joy, and love that will carry them forward to their final days on this earth.
Except, of course, it doesn’t work out that way for most people. The majority of marriages fail, either ending in divorce and separation or devolving into bitterness and dysfunction. Of all the people who get married, only three in ten remain in healthy, happy marriages, as psychologist Ty Tashiro points out in his book The Science of Happily Ever After, which was published earlier this year.
Social scientists first started studying marriages by observing them in action in the 1970s in response to a crisis: Married couples were divorcing at unprecedented rates. Worried about the impact these divorces would have on the children of the broken marriages, psychologists decided to cast their scientific net on couples, bringing them into the lab to observe them and determine what the ingredients of a healthy, lasting relationship were. Was each unhappy family unhappy in its own way, as Tolstoy claimed, or did the miserable marriages all share something toxic in common?
Theories on what’s behind one of the biggest puzzles facing America today
U.S. economic growth is anemic, and the country needs to do something about it, quickly. This was one of the central themes of the third presidential debate. “China is growing at 7 percent. And that for them is a catastrophically low number. We are growing—our last report came out, and it is right around the 1 percent level,” Trump said Wednesday night. “Look, our country is stagnant.”
Trump is right that U.S. growth has not been very impressive of late, especially when compared to rates of the past. Though the United States gross domestic product (GDP) grew at a rate of more than 3 percent for much of the 1980s and 1990s, the rate has slowed significantly since the recession, according to the Bureau of Economic Analysis. In the second quarter of this year, for instance, GDP increased at a rate of just 1.4 percent. After a recession, an economy should come roaring back, but this time around, it hasn’t, and that’s left many concerned about the state of the economy. GDP growth, economists say, helps raise wages and living standards, and increases the size of the entire economic pie—making it possible for more people to have a bigger share.
How the national mythos and U.S. labor laws influence geographic mobility.
Kevin Bacon moves from a big city to a small town in Middle America where dancing is outlawed. Ralph Macchio moves from New Jersey to California, where he learns the art of life and combat. Dianne Wiest moves with her two sons to a California town stocked with vampires.
The trope of American families settling in faraway places isn’t just a plotline for terrible 1980s movies, but a national phenomenon. Decades of data, including a more recent Gallup study, characterizes the United States as one of the most geographically mobile countries in the world. “About one in four U.S. adults (24 percent) reported moving within the country in the past five years,” the report noted. With the comparable exceptions of Finland (23 percent) and Norway (22 percent), Americans also move considerably more than their European peers.
Among the major sites that had trouble staying online or functioning properly: The New York Times, Twitter, Pinterest, Reddit, GitHub, Etsy, Tumblr, Spotify, PayPal, Verizon, Comcast, EA, and the Playstation network. Aside from the inconvenience to those attempting to visit those sites, there’s the question of how an attack like this affects the companies who run those sites. System outages—even seemingly brief ones—can have huge repercussions on the bottom line.
Why her vow not to “add a penny to the debt” is an impossible pledge to keep
Hillary Clinton said nothing on Wednesday night that should derail her considerable chances of winning the presidency on November 8. But if she wins, one simple promise she repeated over and over again could come back to haunt her reelection bid in 2020.
“I also will not add a penny to the debt,” Clinton said toward the beginning of her final presidential-debate performance. She made a similar pledge two more times that night, and it’s a line she has used before on the campaign trail. It’s a short-hand reference to the fact that although she has proposed hundreds of billions in new federal spending for infrastructure, paid family leave, education, and other items, she would pay for those investments by raising an equal or greater amount in revenue through higher taxes on the wealthy and corporations.
An interview with Bill O’Reilly Monday night distilled many of the struggles the Late Show host has had in his first year on the job.
Almost 10 years ago, Stephen Colbert appeared on Fox News’ The O’Reilly Factor in character as the Colbert Report host—a pugnacious, egotistical super-pundit who tolerates no criticism. Colbert has frequently acknowledged that O’Reilly was the chief inspiration for his on-screen persona, and it was hilarious to see the imitation go up against the real thing. “What I do, Bill, is I catch the world in the headlights of my justice,” Colbert bragged to a smirking O’Reilly. “I’m not afraid of anything. Well, I might be afraid of you.” The same day, O’Reilly went on Colbert’s show; the combative tension between the two remains genuinely thrilling to watch.
On Monday night O’Reilly went on The Late Show With Stephen Colbert to talk about the state of the Republican Party and Fox News. The conversation was civil, at times energetic, but mostly bland. O’Reilly, clearly far more at ease, pontificated on the state of the Trump campaign while dodging any discussion of some of its biggest controversies. Ultimately, it was a notable reminder of just how much things have changed for Colbert since he cast off his late-night character and joined CBS. To stand out in a crowded landscape, Colbert has pursued even-handedness and empathy, a drastic swerve away from his former public persona. It’s an approach both noble and misguided, but a year into his Late Show run, it’s kept him firmly out of the zeitgeist.