In June 2008, I used this space to call on then-Sen. Barack Obama to add economist James K. Galbraith's book, "The Predator State," to his reading list. As an account of the capture of government by private interests, I thought it would make a far more useful guide to contemporary political economy than the market-glorifying texts that were still in fashion in those days. Full Story »
Posted by Kristin Gorski
Writer Thomas Frank, quoting economist James K. Galbraith (and even corresponding with him via email to get clarification), makes some key distinctions about conservative arguments against government-run health care options. Original and insightful.
I emailed Mr. Galbraith to get his thoughts on Mr. Grassley’s novel use of his idea. “[T]he concept of the ‘Predator State’ is not quite as Senator Grassley describes,” the economist replied. “Social Security isn’t predatory. . . . Back before they were privatized, Fannie Mae and Freddie Mac weren’t predatory. Ginnie Mae still isn’t. And a public option for health insurance isn’t predatory either.” “The ‘predator state’ describes what happens when chicken coops are given over to foxes,” Mr. Galbraith continued. “When consumer protection, worker protection, environmental protection, and policing against fraud are handed over to lobbyists. And when health care is run for the benefit of private insurance companies, whose business model . . . is to target coverage on the healthy and delay payments to the sick.”
Solid, clear explanation. Excellent use of primary sources.