People are confusing an increase in costs that was largely (not completely) anticipated — after all, the plan is supposed to cover more people, and subsidize their coverage — with a cost overrun.
So a not completely anticipated increase in costs is not a cost overrun.
This news brought to you by a winner of the John Bates Clark Gold Medal, awarded once every two years to the best American economist under 40 years of age.
2 responses so far ↓
1 dearieme // Feb 3, 2008 at 6:11 pm
Do you suppose that he really means “anticipated” or is he using the word in the usual semi-literate’s sense of “expected”?
2 ZH // Feb 4, 2008 at 7:56 pm
In all fairness, Krugman’s 54 now, and won the John Bates Clark medal when he was 37 0r 38. His academic writings until that point were of a high caliber, for the most part, whether you or I agree with it or not. It is Krugman the journalist who has spouted this type garbage for the past 10 or so years. There is good reason why a number of my left-wing economics professors think Krugman nol onger has any shot at a Nobel, whereas 15 years ago he was considered a lock to eventually receive one.
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