Administration Issues Eligilibility-Limiting Standards For SCHIP

The NYT's Robert Pear reports today that the agency that administers the State Children's Health Insurance Program (SCHIP) has issued new guidelines that could limit eligibility. The Bush administration, continuing its fight to stop states from expanding the popular Children's Health Insurance Program, has adopted new standards that would make it much more difficult for New York, California and others to extend coverage to children in middle-income families.

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Global Capitalism: Smash or Crush?

Barbara Ehrenreich's take on the troubled stock market. Check it out, if only for the tongue-in-cheek phrases like "smashing the global financial system."

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The Rot at the Top

Poverty and inequality are big problems. But how big are they? It's tempting to define them as only concerning aggrevied parties- the poor, the displaced, the underemployed. But the reality is that these problems have something to do with a whole lot of people. There's the aggrievee, and the aggriever. It takes two to tango. So who are the aggrievers? In other words, who's getting rich under the new inequality? Who are the new Rockefellers and Morgans? And what exactly did they do to deserve all that money?

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When Deficits Go Right

Matthew Yglesias: Preschool money for poor kids is the sort of thing that sounds good when a state is flush. When a recession comes, Medicaid costs go up, and tax revenues go down it's another matter. The state needs to balance its budget, and it's not going to want to do it by slashing services the middle class enjoys. So it comes down to tax increases and cutting services for the poor (and, of course, infrastructure maintenance as we've seen recently) and the poor tend to lose.

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Keeping What You Earn

Reading an article about housing projects in New Orleans that are slated for demolition, I saw something that got me thinking about deserving-ness and inequality. By the turn of the century, when I first walked through a New Orleans housing project for my own work (representing poor people facing the death penalty), I found it difficult to believe that the government could legally allow people to live in such squalor, with windows busted out on many units, with doors knocked in exposing interiors covered with graffiti, with children playing in trash-strewn common areas overgrown with weeds taller than them. By this point, America had given up on the notion of the deserving poor in favor of the view that identified the mostly working mothers who occupied the majority of these units as "welfare queens" having children in order to get bigger government checks. It isn't just the nation. I'd argue that much of the progressive community has all but given up on making a strong case for a deserving poor and middle class.

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Rant About Inequality, Part 17

EPI's Ross Eisenbrey wrote a great response to another economist whose love for the market has made him misrepresent the facts.

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Study Finds Millions Uninsured But Eligible for SCHIP

In the online journal Health Affairs, there's a study of the number of children who are eligible for the State Children's Health Insurance Program (SCHIP) but aren't being covered. The authors- two economists at a federal health care research agency- found that 62 percent of uninsured children are currently eligible for SCHIP. That's 5.5 million kids, the vast majority of whom live in families whose incomes are below 200 percent of the poverty line and are disproportionately headed by a single parent. And for the fiscal policy folks, there's this interesting twist on the cost of SCHIP:

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Katrina Recovery Update

The Brooking's Katrina Index released its latest report on the slow-going hurricane recovery. The report explains a few of the policy barriers to a full recovery: Despite this progress, many other obstacles to recovery remain.
  • The Road Home program will stop accepting applications after July 31, largely due to the estimated $5 billion shortfall in the program. Neither Congress nor the Louisiana legislature have committed to providing additional funding for Road Home.

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NPP: Half of Those Eligible Receive Food Stamps

A report by the National Priorities Project finds that of all people that are income-eligible to receive food stamps, only half actually receive them.
  • Half of all low-income people did not receive Food Stamp Program benefits.
  • Counties with lower poverty rates and higher median household incomes had lower percentages of low-income people that were Food Stamp recipients.
  • A significant number of counties, 13.2 percent, had below-average percentages of Food Stamps, yet had above-average poverty rates.

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Fiscal Liberals, Be Not Afraid: The Power To Defeat The Right Is Within You

National Journal's Clive Crook deftly devalues "starving the beast" as a political tactic, which asserts that tax cuts can put pressure on lawmakers to reduce the size of the government. "Starve the beast" exponents are not demanding packages of lower taxes and lower spending. They are saying that lower taxes will sooner or later wear spending down anyway. When you look at those cases -- instances where taxes have been cut independently, with no connection to new spending plans -- spending does not fall, say the Romers. In fact, it rises a bit. "Starve the beast" does not work.

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