We’ve given the Times’s David Leonhardt credit before for economic writing that threads the tricky “news analysis” needle, and, in today’s piece, he once again displays that ability. But he also accomplishes what may be a more daunting task, finding a fresh angle on health reform at precisely the moment when it didn’t seem possible.
After so much shrill political back and forth over the legislation, Leonhard goes the sober economic route. And he brings a set of fresh economic insights that left me wondering why—amid the long hours and many words of the health care debate—some of these points hadn’t been brought to light sooner.
The piece begins with a real this-is-a-big-moment feel that firmly places it on the front page, below a photo of the White House bill-signing ceremony.
For all the political and economic uncertainties about health reform, at least one thing seems clear: The bill that President Obama signed on Tuesday is the federal government’s biggest attack on economic inequality since inequality began rising more than three decades ago.
Leonhardt then moves quickly to what he sees as the meat of the matter:
Over most of that period, government policy and market forces have been moving in the same direction, both increasing inequality. The pretax incomes of the wealthy have soared since the late 1970s, while their tax rates have fallen more than rates for the middle class and poor.Nearly every major aspect of the health bill pushes in the other direction. This fact helps explain why Mr. Obama was willing to spend so much political capital on the issue, even though it did not appear to be his top priority as a presidential candidate. Beyond the health reform’s effect on the medical system, it is the centerpiece of his deliberate effort to end what historians have called the age of Reagan.
Now, we’ve also given Leonhardt grief before, as we did back in November 2007 when he took an ill-advised and poorly supported leap into the counterintuitive, seeing the bright side in signs of economic catastrophe that had then begun to manifest themselves. Nobody’s perfect, and we’re happy to give credit where it’s due and to note, if it’s not too condescending, no small amount of professional growth in his columnizing over the past year or so.
A key element is the heavy dose of research that goes into each piece.
Not sure about that tax rate claim? Click through to find this hearty academic study of the declining progressivity of the U.S. federal tax system. In this era of what Big Chief Audit Dean Starkman calls the hamster-wheel-like productivity demands plaguing MSM basically all journalists these days, that’s a depth of reporting that can really only be done by someone like Leonhardt who usually writes once a week. Give a reporter time to think, good things happen. Believe it.
Leonhardt sets out some basics of the bill, “the most sweeping piece of federal legislation since Medicare was passed in 1965,” plainly stating that it would help people “to afford medical care after they lose a job or get sick. And it would do so in large measure by taxing the rich.”
As Michael Calderone pointed out, there’s been no escaping the health care debate, which filled 37 percent of the news hole across all platforms during the past week, according to the Project for Excellence in Journalism. If it seemed like health care was even more dominant, it probably was. On talk radio and cable news, it occupied 80% of airtime.
Maybe that’s why Leonhardt’s context seems so valuable. For instance, here’s a stat that is known but not fully internalized among the business press corps, we feel:
Since 1980, median real household income has risen less than 15 percent. The only period of strong middle-class income growth during this time came in the mid- and late 1990s, which by coincidence was also the one time when taxes on the affluent were rising.

So Obama-care wasn't so much about improving health care access but was a social engineering scheme in disguise? And CJR praises this revelation? How wonderful. Restores my faith in my government AND the press, it does.
#1 Posted by SamTyler, CJR on Wed 24 Mar 2010 at 05:07 PM
I think Leonhardt overstates how this bill ends "the Age of Reagan." As Robert Reich noted, "Reagan told America government is the problem, Obama's health bill reasserts that government can provide a major solution." Reich adds that this bill is a very conservative piece of legislation, not on par with the New Deal or the Great Society (http://tpmcafe.talkingpointsmemo.com/2010/03/22/the_final_health_care_vote_and_what_it_really_mean/)
That's about all it is. A few provisions take effect in 3-6 months but really, the high impact stuff, like the exchanges, doesn't come into effect until 2014. Let's hope the 24,000 people who die annually from lack of adequate health care and insurance can hold on.
#2 Posted by cab91, CJR on Wed 24 Mar 2010 at 05:38 PM
This wasn't a new analysis. Conservatives have said, for as long as there has been a healthcare debate, that the entire idea was more about wealth re-distribution than healthcare.
The saddest thing of all is that this statement by a member of the MSM of the most obvious possible point is hailed by liberal media watchers as a "fresh angle". Here's an idea, stop reading the Times, and read some conservative and libertarian sources, and you would have received this "fresh angle" years ago.
#3 Posted by FaxMeBeer, CJR on Wed 24 Mar 2010 at 05:47 PM
Sam,
I think it's more that the Law of Unintended Consequences will kick in.
#4 Posted by Jack Walsh, CJR on Thu 25 Mar 2010 at 10:45 AM