HEALTH CARE REFORM TOO BURDENSON FOR BUSINESS?: JUST RAISE PRICES, CLINTON SAYS

Dr. Paul Craig Roberts is a nationally respected economist and a former deputy Treasury secretary in the early days of the Reagan administration. He also writes a syndicated column distributed nationally. A principled conservative who was highly critical of the failed presidency of George Bush, Roberts is one keen observer of the arcane subject of economics. He possesses what one writer called "a vision into the causes of our disorder."

Discussing the prospect of rising inflation seen by many, Roberts wrote a couple of weeks ago, comparing President Bill Clinton with the chief executive he served, Ronald Reagan. Roberts wrote:

"... If Reagan could combine the longest peacetime expansion in our nation's history with disinflation, how come Clinton can't even get a modest expansion under way without inflation rearing its ugly head? The answer is that Reagan relied on incentives and did his best to get the federal government off business' back. In contrast, Clinton relies on government coercion of business.

"He (Clinton) tells cable companies what price they can charge customers for their companies' service. He designs a health care system that tells people what coverage is permitted and where they must go to get it. He wants to confiscate the capital of doctors by regulating their incomes. He punishes successful upper-income people with higher taxes.

"We have seen all this before. In the 1970s it produced `stagflation'. The incentives to perform were taken out of the system. Instead of working harder, businesses just raised prices. When the government responded with controls, we had gasoline lines.

"The tension in American politics has always been between success and envy. When success has the green light, the economy takes off and people's incomes and wealth soar. Then along come the demagogues and the intellectuals. They whip up envy of success. The political regime changes, and punishment becomes the order of the day. ..."

Next, economist Roberts makes explicit a comparison of President Clinton to former President Jimmy Carter and the economic catastrophe of that period:

"Gold is starting to push $400 an ounce, and newspaper ads are appearing comparing Clinton to Jimmy Carter and offering gold coins as a 'Clintonomics defense.'"

Is that unfair? Emphatically not. If you doubt it, you should be aware that confirmation for Dr. Roberts' point comes from none other that President Clinton himself.

Thursday evening of this past week, President Clinton was in Kansas City for another town meeting on health care. During the session he was confronted by Herman Cain, chief executive officer of Godfather's Pizza. Cain told the President that if the Clinton health care plan is implemented it would result in a loss of jobs (a fact that is not disputed by backers of the CLinton plan). Mr. Cain asked, "If I'm forced to do this, what will I tell those people whose jobs I'm forced to eliminate?" The President responded, "Why wouldn't you all be able to raise the price of pizza 2 percent? I'm a satisfied customer. I'd keep buying from you."

There you have it. In one extraordinary exchange, we're offered the answer of a man who has spent his entire adult life seeking and holding public office. It is this: Prescribe no, positively encourage inflation! Force job-creating entrepreneurs to either raise prices or eliminate jobs.

Roberts wrote his column on March 24. The President he was criticizing confirmed him this past week. Roberts concludes:

"Clinton should be concerned that he has revived the gold bugs. During the Reagan 1980s gold tumbled and stock and bond prices soared. The United States cannot afford Clinton's anti-capitalist policies ..."

In the Book of Proverbs, it says, "Put not your trust in princes." Good wisdom, that. Trouble is, modern liberals jettisoned that wisdom years ago. Bill and Hillary Clinton are the quintessential modern liberals. Their motto should be: "Put all your trust in us, to direct Big Government, for We Know Best." As the waiters say these days, when setting food in front of you:

"Enjoy."