US Economy: Obama should spend money on healthcare to stimulate the economy - by Dean Baker
Few presidents will come into office having generated the sort of expectations Barack Obama created over the course of his campaign. The country's economic crisis poses substantial dangers but it also presents enormous opportunities. If President Obama is prepared to seize these opportunities, he will establish himself as one of the countries truly great presidents, alongside Lincoln and Roosevelt. Specifically, Obama can take advantage of the current economic crisis to announce plans to jump-start national health insurance. Extending health insurance can be an effective stimulus that will provide an immediate boost to the economy. More importantly, it will provide the same access to healthcare that people in other wealthy countries have long taken for granted.
The backdrop is straightforward. Economists from across the political spectrum are now calling for a large stimulus package to limit the economy's decline and the rise in unemployment. The consensus is in the range of 2.0-2.5% of GDP, or $300-400bn a year.
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