Subject: Rising health care premiums, Ukraines troubled economy (AEI Economics Ledger) If you have trouble reading

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VIDEO Health care premiums are skyrocketing, not dropping as promised Could Obamacare win lie of the year two times in a row? Stan Veuger: In December, President Obamas claim that if you like your health care plan, you can keep it was named the 2013 Lie of the Year by Politifact. . . . Now fast forward a few months to the glorious new year of 2014, and lets see what has become of the presidents other central claim in the debate over health care reform: that it would bring down premiums by $2,500 for the typical family.

War on the poor

Restoring opportunity for the poor. Arthur Brooks: Most progressive policies raising the minimum wage, expanding entitlements, increasing taxes on the wealthy as outlined in President Obama's budget proposal this week are framed as steps towards greater fairness and compassion. But as the past five years have shown, intentions do not equal results. FROM THE ARCHIVES (2006) How tax policies impact low-income workers. Kevin Hassett: Nonincome taxes as a percentage of total taxes for low-income families has increased sharply over time. One possible explanation for this pattern may be that issues of fairness appear to have put significant downward political pressure on tax liabilities for low-income families for taxes whose incidence is readily observable, but not for taxes, such as sales taxes, with less obvious distributional effects.

International economics
Congratulations to Ioana Petrescu, adjunct scholar at AEI, for being nominated to head Romanias finance ministry! Ukraines troubled economy. Desmond Lachman: Ukraine suffers from a twin deficit problem of the order of 9 percent of gross domestic product. In addition, the countrys banking system is grossly undercapitalized and the banks mismatched loan book will be further impaired by the collapse of the currency. NEW RESEARCH Asian crisis equals American opportunity. John Makin: Americas economic and geopolitical interests are far better aligned with Japans goals than with Chinas. Japan is at an important crossroads, one highly relevant to American geopolitical and economic interests. The presidents derailed trade agenda. Claude Barfield: The failure of the US to continue to lead in a successful conclusion of the TPP would likely destroy the possibility of a broader US-led and anchored Trans-Pacific regional economic structure. In its place, the Chinese are already assiduously pushing for a narrower East Asian architecture that does not include the US. Biden isnt letting go just yet. Claude Barfield: Vice President Joe Biden published a strong opinion piece aimed directly at Democrats in his own party who are skeptical of the presidents trade agenda. The choice of Biden to pen the piece is significant, given his long-standing close relations with the labor

unions, who have remained steadfastly opposed to the new trade agreementsand the fact that he is still contemplating a run for the presidency.

Financial economics
NEW RESEARCH When governments direct bank credit, the economy suffers. Paul Kupiec: The financial reforms enacted in the Dodd-Frank Act have given government regulators many new powers, including the ability to use the banking system to implement politically driven lending policies. Against this backdrop, some types of consumer credit are now treated as a virtual entitlement as a backdoor means to redistribute income. Fannie and Freddie pay back Uncle Sam, and then some. Alex Pollock: Fannie Mae and Freddie Mac, operating entirely as an arm of the government, entirely dependent on the credit of the government, and getting huge subsidies and favors from the government, have begun making large profits, all of which they are paying to the US Treasury. Hedge funds bet on GSEs. Peter Wallison: Hedge funds probably realized not only that Fannie and Freddie would eventually become profitable but also that they could probably push Congress to do what Entine recommends: allow these profitable companies to exit the conservatorship and resume their role as profit-making enterprises. That would have made a fortune for the hedge funds. A book review of The Bankers New Clothes. Alex Pollock: The book conveys a nave faith in financial regulation, and suggests that everyone should share such faith, as the authors obviously do. This is the most disappointing element of their discussion, put forward as a credo.

Dont miss
The secret (and massive) tax hike in Obamas budget. Jim Pethokoukis: President Obama proposes $56 billion in new spending, including money for manufacturing hubs, incentives for states to promote energy efficiency, job training, and expanded preschool. But this new spending would not be deficit financed. It would be paid for through some unspecified mechanism though almost certainly by higher taxes rather than spending cut offsets.

Mark your calendar

3.13 AEI Event: From poverty to prosperity: A conversation with Bill Gates 3.13 Jobless claims released 3.20 AEI Event: The Fed: Philosopher king or servant of the Treasury?

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Get up-to-the-minute updates on Twitter @AEIecon. Read more from the American Enterprise Institute economic policy team at www.aei.org/economics. Contact Abby at abby.mccloskey@aei.org if you have questions for the economics team. Sign up for a weekly copy of the LEDGER here. If you were forwarded this message, click here to subscribe to AEI newsletters. Click here to unsubscribe or manage your subscriptions. American Enterprise Institute for Public Policy Research | 1150 Seventeenth Street, NW, Washington, DC 20036 | 202.862.5800 | www.aei.org