President Barack Obama is trying to persuade a weary public and wavering Democrats to get behind his frantic, late-stage push on health care, while Republicans dig in and demand starting from scratch after a year’s worth of work.

“Now, despite all the progress and improvements we’ve made, Republicans in Congress insist that the only acceptable course on health care is to start over. But you know what? The insurance companies aren’t starting over,” Obama said in his weekly radio and Internet address Saturday.

“I just met with some of them on Thursday, and they couldn’t give me a straight answer as to why they keep arbitrarily and massively raising premiums — by as much as 60 percent in states like Illinois. If we do not act, they will continue to do this.”

Republicans were not swayed even though many small businesses, the main job engine of the economy, are either opting not to provide coverage for their workers, or are holding off hiring because of the high cost of providing benefits to new workers.

“It’s not too late: We can, and we must, stop this government takeover of health care,” said Rep. Parker Griffith, a retired physician and a first-term congressman from Alabama who switched parties in December and delivered the GOP message.

Obama is pleading with Democrats to overcome divisions to seize a historic moment to remake the health care system this year. One thing that many voters, and our representatives, fail to understand is that there are very few ways for the government to stimulate hiring in the economy. Government can either expand the government payroll or increase spending, either of these require increased taxes.

As the chart below shows it was an an increase in government spending starting in 1942 for the war that finally turned the economy around after the great depression.

I am no advocate of war and the deficit is rising. That’s one reason why the current administration is trying some thing new. If Democrats pass the plan, voters would find greater consumer protections and a ban on discriminating against customers with previous ailments. Small businesses would receive a tax credit this year, insurance companies would no longer be able to drop patients’ coverage if they become sick, and plans would be required to offer free preventive care to customers. All of these reforms would lower the ongoing costs associated with the hiring of new employees and would be a good, first, step toward a full recovery.

If Congress is truly serious about encouraging economic recovery and keeping taxes as low as possible, then the path before us is clear. Lower the threshold at which it makes sense for a business to hire new employees and support them in keeping those new employees busy with programs designed to increase foreign trade and stabilize domestic consumption.

Pass health insurance reform today!

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3. 2010 Forecasts Improvement In US The Job Market, For Some.
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Posted in Stephen's Blog