The sweeping government plan to buy up nearly a trillion dollars in toxic mortgage securities may scuttle any hopes of achieving universal health care in the short term, but it may actually improve prospects in the long term. Here’s why:
When a President McCain or Obama is sworn in next January, the country is still going to be in the grips of sticker shock. $700 billion is equivalent to what we’ve already allocated to military operations in Iraq. And consider the worrisome economic climate that is likely to greet the new president when he assumes office. Home foreclosures will continue in significant numbers well into 2009 and it’s going to take even longer for the economy as a whole to recover. Elected officials will have little appetite for any new investments, especially if they sense any lingering voter resentment over the size and scope of the bailout. Make no mistake–the next administration will spend much of its first term trying to keep things afloat and it will be lucky to realize even a handful of domestic achievements. Health care reform isn’t going to be one of them.
But let’s assume that this Congress manages to implement a bailout that ultimately puts the country on more solid economic footing and perhaps even succeeds in bringing some tangible benefits. It might be enough to silence the most vocal opponents of government intervention in the marketplace while restoring confidence in government’s ability to assure the welfare of its people. A competently executed bailout could reframe the discussion surrounding government’s role in a complex world.
It may not seem like it right now, but this crisis may eventually set the stage for a grown-up solution to providing affordable health care to everyone.
