Health Care Compromise, Growing Deficits and a Sugar Shortage
The White House signals a willingness to compromise on health care reform.
The federal budget deficit hits $1.27 trillion.
Major food companies warn that the nation may be facing a sugar shortage.
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1. HEALTH CARE
The White House signals a willingness to compromise on health care reform.
CEI Expert Available to Comment: Senior Attorney Hans Bader on one free market reform that could make a big difference:
“Germany is a lot smaller than the U.S., but it has a lot more health insurers to choose from, and cheaper health-care costs. One reason might be more competition: in the U.S., you can’t buy individual health insurance from an out-of-state insurer, since an obsolete federal law lets states block purchases across state lines, taking away interstate-shopping rights that citizens would otherwise enjoy under the Constitution’s Interstate Commerce Clause. That leaves patients with fewer choices, higher prices, and less competition among insurers, who may control as much as 80 percent of the market in a particular state.”
2. BUSINESS
The federal budget deficit hits $1.27 trillion.
CEI Expert Available to Comment: Regulatory Studies Fellow Ryan Young on one of the many side effects of high government deficits:
“Government borrowing crowds out private borrowing. The higher the deficit, the more crowding out. This point is underappreciated. There are only so many investor dollars to go around. The $1.27 trillion the government is borrowing to pay for this year’s spending is $1.27 trillion that now cannot go towards job-creating corporate bond issues or stock IPOs. Imagine the opportunity costs.”
3. FOOD
Major food companies warn that the nation may be facing a sugar shortage.
CEI Expert Available to Comment: Adjunct Fellow Fran Smith on what’s causing the problem:
“Currently, U.S. sugar users are facing steep prices and a shortage of sugar. Under the U.S. sugar program – a system of price supports and import restrictions – there are quotas on the import of tariff-free sugar. The USDA and the U.S. Trade Representative administer the import quotas for sugar, which must be consistent with the U.S. commitments to the World Trade Organization. That quota amount is allocated to 41 countries, which means that the sugar can enter the U.S. duty-free or with a low tariff. Import amounts above that face a steep tariff, unless the USDA determines that the domestic supply can’t meet the demand and increases the quota amount.”
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