South By North Strategies, Ltd.

Fighting Global Poverty

The Economist has a cup of tea with economist Abhijit Banerjee of MIT and discusses ideas for addressing global poverty.

Around The Dial – July 25, 2011

Economic policy reports, blog postings, and media stories of interest:

• Ezra Klein points out the need to address tax expenditures.
• Paul Krugman isn’t impressed by American or European economic policymakers.
• Economix asks if there is hope for the unemployed.
• Naked Capitalism games out scenarios if the debt ceiling isn’t raised.
• Free Exchange points out the role of social ties in job searches.

Long-Term Care Still A Problem

TaxVox points out that America still lacks a functional way of financing long-term care.

This combination of cuts and repeal of CLASS [Community Living Assistance Services and Supports] threatens to put millions of families in financial and physical jeopardy. Today, more than 40 percent of all long-term care is funded by Medicaid, the joint federal/state health program that is itself under tremendous financial stress. Only about 7 million Americans own long-term care insurance, which is both costly and often unavailable to those with pre-existing medical conditions.
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While CLASS is deeply flawed and needs to be reformed, it is an opportunity to transform long-term care from the means-tested Medicaid program to an insurance-based system. Since so few consumers are interested in buying existing private coverage, this could be designed as government-run insurance, or as private insurance sold under a government rubric, much like Medigap insurance or Medicare Part D drug coverage.
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Yet repealing CLASS would destroy that opportunity, and millions of Americans will no no choice but to turn to a shrinking Medicaid benefit in frail old age or in other times of disability. Currently more than 10 million Americans require long-term care services, either at home or in a nursing facility. By mid-century, twice as many will require this assistance.

Sad, But True

America’s Finest News Source, The Onion, assesses the debate over raising the debt ceiling …

WASHINGTON—Members of the U.S. Congress reported Wednesday they were continuing to carefully debate the issue of whether or not they should allow the country to descend into a roiling economic meltdown of historically dire proportions.
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At press time, President Obama said he personally believed the country should not be economically ruined.

Around The Dial – July 22, 2011

Economic policy reports, blog postings, and media stories of interest:

• Off the Charts points out how to improve the Section8 housing program.
• Keith Hennessey explains the policy substance of ‘”the Gang of Six” proposal.
• Howard Gleckman asks what to do about long-term care.
• Robert Shiller describes “debt and delusion.”
• Simon Johnson thinks about how tax reform could help the financial system.
• Naked Capitalism wonders if BofA is at risk of  “a death spiral.”