Where Does the Money Come From?

A caller complained about low wages. Krugman said the best way to address this is through adoption of Universal Healthcare. You see, if workers had free healthcare, this would help with the household budget burden. This is a true statement as long as those same workers are not hit with an equal or greater tax burden to pay for Universal Healthcare.

Krugman continued to argue that corporations will also benefit from Universal Healthcare because the won't have to provide healthcare as part of the benefits package and can instead pay a higher wage. This will raise people up from the lower to middle class and save the companies money (he used the Big Three as an example).

Kathryn Muratore wonders who will pay for "free" healthcare. Corporations are already going broke paying for it so they want to be let off the hook too. That leaves the "wealthy" to pick up the tab. Krugman - recently awarded a Nobel trinket for his economic astuteness - apparently believes we can continue to plunder the nation's wealth with no detriment to our finances.