Earlier versions of this article incorrectly reported that Contingencies magazine is produced under the auspices of the American Association of Actuaries. The correct group is the American Academy of Actuaries. This version has been corrected.
McCain Health-Care Article Fuels New Clash Over Economy
Sunday, September 21, 2008
JACKSONVILLE, Fla., Sept. 20 -- An article about health care published in an obscure journal led to a new skirmish Saturday between the campaigns of Democrat Barack Obama and Republican John McCain over who should be trusted with the ailing economy.
The article, which appeared under Sen. McCain's name, included a favorable reference to banking deregulation that, in light of this week's near-meltdown in the financial industry, provided an irresistible target for Sen. Obama's campaign and once again put McCain on the defensive. McCain's campaign accused Obama of manufacturing an attack by deliberately misreading the Republican's words.
The article was published in Contingencies magazine, which is produced under the auspices of the American Academy of Actuaries. In it, McCain touted his plans for increasing competition in health care as one way to expand coverage and reduce costs.
McCain wrote, "Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation."
Obama, appearing at Bethune-Cookman University in Daytona Beach, Fla., mocked his rival for sounding out of touch at a time when Washington is moving rapidly to re-regulate the financial industry to curb the excesses that put the system into near-paralysis in the past week.
"So let me get this straight -- he wants to run health care like they've been running Wall Street," Obama told the audience. "Well, Senator, I know some folks on Main Street who aren't going to think that's such a good idea."
The Obama campaign first learned of the McCain article when New York Times columnist Paul Krugman referenced it Friday night on his blog. Since then, officials in the campaign have spread its contents as quickly as possible.
McCain's campaign, caught off guard by the uproar caused by the article, called the criticism from Obama a red herring. What McCain was referring to, one of his advisers said, was the change in regulations that allowed banks to operate across state lines, thereby opening up more competition while providing easier access to services for consumers.
"This is absurd," McCain senior economics adviser Doug Holtz-Eakin wrote in an e-mail sent to reporters. "If Barack Obama thinks that today's financial troubles were caused by policies which allowed Americans to use an ATM anywhere in this country, then it is better that he continue to be silent about solutions to the crisis on Wall Street. That crisis arose from corruption and regulators asleep at the switch. It's also possible Senator Obama is simply a dishonest politician who will say anything to get himself elected and just isn't ready to be President."
Coming only a few days after McCain had defended the economy as "fundamentally strong" as the stock markets were plunging last Monday, however, this latest episode underscored anew the extent to which the economic crisis has put McCain on the defensive.
McCain moved immediately to deal with his comment about the economy's fundamental soundness, and over the next several days he pushed an increasingly populist message that emphasized the tough times Americans are facing and called for cracking down on corruption and greed on Wall Street.
Obama unloaded on McCain during appearances Saturday. He fired back at McCain for running ads linking him to former top executives of Fannie Mae, James A. Johnson and Franklin Raines. Johnson briefly headed up Obama's vice presidential search team but stepped aside when controversy arose over his role at Fannie Mae. Raines recently settled with the government after being tagged in a huge financial scandal at the mortgage financing institution.