David Frum’s Waterloo

Congratulations to David Frum on his induction as a centrist.  He was sacked from his job at the American Enterprise Institute after criticizing Republicans for their role in the health care debacle.  Among other things, Mr. Frum says that Republicans erred in supporting employer-paid health care.

The Economist agrees, calling employer-paid health care a “bug” and an “accident.”  The Obama plan now enforces the bug, while doing nothing to contain costs.  According to this analysis, health care costs will rise to 20% of GDP by 2017.

Both the right and the left have long argued that putting business at the heart of the health-care system is a bug.

Now, America has the worst of both worlds.  Employers pay, with the plans taxed “selectively” for political advantage.  Jeremiah wrote, last October, that the honest solution is to end the tax deduction entirely.  This industry is not going to shape up until individual Americans are holding the checkbook.


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