The Unrepentant Inflation Hawks and Obamacare Foes

October 03, 2014

Bloomberg News did a thing of simple and rare beauty. It went to the 23 economists who signed a letter to Fed Chair Ben Bernanke in November of 2010 warning of inflation and other dire consequences from its policy of quantitative easing. It urged him to reverse course.

In fact, not only did Bernanke not reverse course, he doubled down with two subsequent rounds of quantitative easing. And four years later the inflation rate is still below the Fed’s 2.0 percent target. So Bloomberg decided to ask the 23 signers whether they had been mistaken. While most of the signers declined to comment, the ten who did all insisted that they had been right. Obviously these folks have no intention of letting reality influence their views about the world.

I was reminded of this issue when I read Michael Gerson’s column on the need of low-income children for attention from adults who care. Gerson notes that most low-income parents are overwhelmed with the struggles of making ends meet and it’s not reasonable to expect more from them.

While Gerson’s realism on this point should be appreciated, there has been an important change in this area that deserves attention. There has been a sharp increase in the percentage of young parents who voluntarily work part-time. The obvious explanation is the availability of insurance through Obamacare. These parents can now either get insurance through the exchanges or the expansion of Medicaid.

Now that parents don’t need to work full-time to get insurance many appear to be choosing to work part-time so they can spend more time with their kids. That would seem to be good news from almost anyone’s perspective. After all, as Gerson reminds us, it isn’t just liberals who think that it’s a good thing that parents have the time to look after their kids. 

So now that we are getting evidence that Obamacare is not just extending insurance coverage and helping to contain health care costs, but also making it easier for parents to balance the demands of work and family, will we see the opponents changing their minds?

 

Note: Typo in headline corrected, thanks L.ol.

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