Journal Editorial Report 8/1

" Coming up next President -- continues as health care bush and his poll numbers continue to fall as the house and senate prepared. Leave for August recess without a vote. Why is public support invading for Obama care plus from axis of evil to axis of engagement. The administration tries to turn our adversaries into partners we will work. And an alarming new study about the high cost of obesity can we solve the problem can we afford not to The Journal Editorial Report charge. Welcome to The Journal Editorial Report I'm Paul Hugo President Obama continued his."

" This week for health care overhaul and his poll numbers well they continue to drop. According to the new Wall Street Journal poll just 41% approve of the job the president is doing on health care. This says blue dog Democrats reached a tentative deal with party liberals but delayed a vote in the house until September. Here to tell us where we stand there after after another week of Wheeling and dealing Wall Street Journal columnist and deputy editor Dan -- anger assistant editorial page. Editor James Freeman senior editorial page writer Joe Rego and Washington columnist Kim Strauss all right Joe. Speaker Nancy Pelosi said this week that the insurance industry was behind this feeding support because they've been opposing it is that. How -- you see it."

" Right -- she accused him of carpet bombing metadata and I mean you have to watch which you know the willing suspension of disbelief. Did the Democrats haven't had a better -- friend in the insurance industry throughout this whole."

" Raymond quiet they haven't run any -- not like 1993. In fact if you look at the whole landscape of -- for this and who's against it. As I see at the industry's been very very quiet the drug industry can quiet the insurance industry's been quiet. How can you blame them that they want a seat at the table right."

" Yeah -- and and you know the real point of us who your post is comments word to sort of win over some of her more liberal members. Who were upset with the deal with more moderate members. In in the house so I mean it's always -- good strategy to attack the industry's -- on our."

" Although why is this place public support for this fall. Well I think public support is failing to truly call because it. Obama and the Democrats have presented it moved from planned to. Take care of the uninsured -- point four million uninsured for a million uninsured to -- plan that is somehow going to cover everybody and suddenly people are sitting out the -- is going oh it's about me actually I'm pretty happy with my health insurance and Mike doctors are pretty good."

" Joe what's the figure on the percentage of of the American public who have insurance already. About eighty some percent yet about 87% and most of those people if you ask -- the polls do say they're relatively content the worried about the increase in in in in cost no question I'm worried about co pays and those things rising but generally they tend to be pretty happy so what you're saying -- that. Because people are -- all of maybe my insurance I don't have to pay for this number one or maybe even my insurance might change in negative ways that -- Behind us I think so people been through freedom high anxiety with the economy were in a recession and they're Democrats are trying something really large and big and complicated. And I think it is simply made a lot of people very nervous but Kim -- although the White House decided initially to sell this as a cost containment you can cover more people but you'd also save money because you -- and cover people in a more efficient. Way was that some liberals now hearing him say that was a mistake they should've sold this as a kind of classic middle class benefit. Do you agree that that was a mistake."

" Yeah I mean because in part because it was blown up you had the Congressional Budget Office come along and say that's just not what's gonna happen under the bills that are going through congress at the moment. Prices are going to go up for the federal government is another morning defensive mode. Because they didn't come out initially and say this for the middle class benefit now they're out they're saying look you're not gonna lose what you have. Trust that this is going to be okay but that's what they're left selling and talking about over this long summer recess."

" It's hard to sell a trillion dollar bill as a cost safer bets are good good the problem is the product not the marketing -- the attempt at saying it's a cost saver was. Was an attempt to say this is there something in this for everybody. Nash and there's not a and it and it's free and it's for. And and you and you get beyond that that's that goes proof after the democratic appointees that this CBOs it's not gonna save money it's gonna cost. And what are you get to you get to government dictating. Decisions on medical care you get to us seniors getting nervous because they're talking about cutting benefits for Medicare. You talk about it limits on innovation Americans want the best they don't want 1990 healthcare to bargain price."

" Seattle can we were it would that they also -- don't the American people also know that -- that the increasing costs and medical care. Probably is unsustainable over time in Medicare is just racing ahead at 78%. Won't we have won't get that at some point don't we have to control -- cost."

" Right there there there -- you knew -- a lot of things that have -- have come from the Republican side in terms of incentives to make people better shoppers with healthcare. But at the end of the day people want. These medical miracles they cost money and that we bring peace and closed for business this week saying that. This this idea that health court in care costs are soaring his bogus it's not -- 1850 technology that now costs a lot more its new stuff new cures and that's expensive it prolongs life."

" Joe no I I think I think there are ways that you can increase efficiencies and health care system. You know Peter Orszag has talked to lot of White House like a director from from day one and and not all of his ideas are objectionable. But you know that. They really involve big changes in the way health care is delivered. And you know you've got Democrats out there attacking those ideas. Because bill hit their constituents. Kim let me let me ask you about this a blue dog Democrat liberal condominium this week -- it was late in the week which they decided that there was going to be some kind of help me how big concession. Did this liberals make to get the blue dog support."

" It was not much of a concession all -- cut about a hundred billion dollars out of their proposed. Bill bringing it down slightly under a trillion dollars. They're going to weekend this public option idea just slightly. Not allow it to sort of impose prices. There also would allow for some co ops in they're gonna have released some. Small businesses from from paying for government run hair care this wasn't much of the deal but it was enough to let the blue dogs. Finally crumble which was always gonna happen and they've now moved ahead although even these minor concessions have completely. Sent the left into an uproar and now you know that the house leadership has got a problem on aspects of it than double the right and the left unhappy coming you don't tell you that."

" I think to liberals are -- Karen garnered a vote for this in the end there and everybody they're gonna give the blue dogs what they need. In order to get their vote because they realize this is the main chance they have first time in twenty years may not be another chance for another twenty years. And they're gonna try to do what ever it takes that the end if they have to. Tell the liberals look you better shut up and vote yes don't do it."

" But it is shown that there are -- and tensions inside the Democratic Party the liberals are so furious at these moderate Democrats even talking about running people against him in the primaries so the Arby's breaks emerging that a lot of people didn't think existed they thought they control congress they don't --"

" I don't want the other irony here is this this bill has the support for his fallen despite the fact that Republicans really hadn't even been on the playing field. Except for the last ten days or so because until the polls tell they were profiles in courage right as usual standing up they're saying and know nothing -- I don't know big marketing campaign against it its collapsing of its own -- it's going to be testing -- watch to see how this plays out over the August recess and whether or not come back labored it comes back he -- in worse shape all right thank you law when we come back from axis of evil to access engagement a closer look. At the Obama administration's talk policy. With a dictator. Goodbye axis of evil welcome axis of engagement in his first six months in office. President Obama is attempting to -- adversaries around the world -- partners and maybe even friends from a -- with Russia -- offers a direct talks with Iran. To this week's new courtship of Syrian dictator Bashir Assad. The Obama administration is betting that diplomacy will both improve America's image in the world. And pay dividends for US strategic interest secretary of state Hillary Clinton this month even held out a carrot to the generals who run Burma arguing that if they released. Nobel Peace Prize winner Suu Kyi from prison the regime could see potential benefits from the US. So how is this diplomacy working out so far and what does America getting in return were back with Dan Henning -- And also joining the panel Wall Street Journal foreign affairs columnist Bret Stephens and editorial board."

" Member max Kaminsky so what a list Venezuela Iran Syria North Korea Burma. Russia what is the big picture goal here of the administration when they attempt was a -- Obama trying to get for us I think you -- what -- call this step on bush foreign policy. That we are going to talk to the people that don't like us and that in didn't like him had a very difficult relationship in the bush years. Good turnaround and as -- saying engage them but for the sake of not being bush. I mean certainly surely there's got to be a larger strategy at work here. I mean that's -- very hard to tell so far because and I think does -- for an as -- Obama keeps repeating. To change America's image in the world that before we're seeing businesses standoffish cowboy nation. Now where the nice guys. Bruins -- these people. But in terms of getting a return on this investment in the inmate in policy. I don't see that. At least on the results so far you don't really see what they. Seem to get from from Russian niceness niceness is never delivered a lot of foreign policy what I think and I haven't I can have via the Obama administration's. Calculus. Is that America's problem foreign policy problem in the bush years was fundamentally a public relations. No problem. And to some extent that is true I mean we did have a big PR problem in Europe for example Canada. We did have a big PR problem and in indeed much of the Arab world and that would make it harder for those leaders to back kind of thing we wanted to do precisely and so the argument is. It to the extent that we can relieve this maybe we can solve a whole we can unlock whole. Other set of of issues and and and make some movement with the Arabs the Arabs and all of the Israelis and Palestinians Israeli that's -- but that's an argument for winning over the people of Paris. That's not an argument for getting anything from our adversaries in Tehran."

" Well that's precisely -- that's precisely it and it's worth you know there's a kind of amnesia here but people think that. For instance bush had this terrible relationship with Russia. But if so if you'll call bush started out going out of its way to try to have an excellent relationship with -- Vladimir Putin fact he was criticized widely mocked even. For going so far -- to say that. You know but I he'd seen looked into Putin's soul he was a good -- its latest 2007 he invited them to Kennebunkport. Two that the family compound and Shannon Shannon O'Donnell and it's not only about a mean with the Iranians very early on before even his -- Bush's reelection. Bush had made it clear that he was gonna choose the diplomatic track -- that the Europeans. Push that diplomacy forward for a number of years they did so the effort for for five or six years and what he yielded wasn't an Iran that much closer to a nuclear assets."

" You know Brett I think there's a concern here and it's analogous to what they've been doing in domestic policy we reached the point where many people including Obama's friends are saying I think he's trying to do too much. And you know in this instance they have put a lot in motion. With North Korea Iran Burma. Honduras Venezuela Cuba. This is this you know when you speak when the president speaks on foreign policy it puts a lot of what it has implications. And my theory is that by engaging and so many fronts they run the risk of one of these fronts getting out of control and a way that they won't be able to get their arms around I assume there."

" That they figured that look can we want them will both throw a lot of lines in the water they warn all pay off that may be one or two will. And that could -- broader dividends suffer for US policy what's wrong what's travel outlines. Because of what deficient the other -- these aren't back cinemanow these are sharks got sorry I brought that -- now look at your right to decide if you voted for instance. North and north Koreans know very well. That do you -- administration is eager to -- eager to -- to it'd be eager to make deals -- what have -- done and they've been -- they've set -- A nuclear bomb. And there's -- live nestled -- launched a whole series of long of of long range missiles. What they take away from the Obama administration's eagerness to talk is well let's raise the price. Of -- sitting at the table and Madonna should be sent to north Koreans have in recent days said they are willing to talk so as the US has gone to the UN. Imposed tougher sanctions while much tougher but at least reinforce the sanctions and now -- re imposing the sanctions that bush has lifted. Maybe this is -- you so look if you knew you -- you might think that if we didn't have a twenty year or longer track record with the north Koreans in which this this is played out again and again. They they do something provocative we respond to sanctions they say we're we're we're prepared to talk. And then it talks bogged down to do something provocative. Again for the Clinton -- that Syria is particularly interesting it seems to me because he's the logic here is of its US can peel Syria away from Iran which is generally in the alliance with what will. For awhile it would further isolate Iran making it more impossible for us to achieve our goals against Iran. It also helped Israel by eight limiting support to -- Hezbollah in Lebanon what's wrong with that argument. Nothing at all and I think the Israelis would be. Always encouraged us talk to the serious but the last twenty years he had tried this very policy hasn't worked the fundamental problem is that -- talking to people who we cannot trust. You tend to get the wrong results and there are cost this policy. In the case of Russia. By going so far to try and engagement. Prudent with what did the the prudent we are damaging our wish to put their allies in Europe who are now worried that we're giving up -- Poland. And Eastern Europe. Ukrainians and georgians these very. Young and and and robust democracies that region also cause to doubt are serious commitment to that and you do run the risk of legitimizing these dictatorship needs."

" Actually just precisely the point she you know in the Cold War we talked to the Soviet Union but that was a massive nuclear power trying to protect a system a huge system. These by and large are autocracy system protecting regimes -- small number of people are virtually quasi criminal enterprises it's not only say you're talking to the Syrian you're trying to Assyrian people you're talking to a small -- The individuals running this country while you're also I mean the other thing that's important particularly in the case of Iran -- allowing them to play for time."

" All right we're gonna see how that goes when we come back a new study puts a price tag on obesity and it's costing you a bundle -- Washington solve the problem. Pardon the pun but fat chance."

" The numbers are staggering three out of -- adults in America are -- that 72 million people with a condition associated with diabetes heart disease and other chronic illnesses and it's taking its financial -- a study released this week by the CDC finds the -- that obesity related diseases account for nearly 10%. Of all medical spending in the United States an estimated 847. Billion dollars a year Joe. So is the CDC may be hyping missile -- veterans is this really."

" Now if anything -- connecting their probably understating matters. You know that that's a 147 billion dollars directly related to obesity. If you look at Milken Institute studied they find -- You know that this economic drag of a fatter and sicker workforce in addition to the medical spending. Is their accounts for one point two trillion dollars lost me economy every year. And you know it did this is especially true for those for the public programs which are paying Medicare and Medicaid rate which are paying for most most of health care costs. Associated with obesity the fact is this is a relatively recent phenomenon. As recently as the 1970s we hadn't seen this kind of this kind of a problem. What accounts for. Well I mean it's it's obviously a very complex. Problem but did you know it's mainly its individual choices about diet and exercise."

" Irony and that's saying it's a simple fact that eating too much is that we didn't say yeah that's what you -- No it but I mean is that is that the issue I mean you -- you that what we all know what you go to McDonald's and -- not to blame McDonald and any place. You know in America and its supersize me it's -- here huge portions a lot bigger than when I was a kid. Is that is -- as simple -- that eating too much or eating too much of the wrong kinds of things."

" I mean it's eating too much it's it's both into eating too much in the wrong kinds of things. But we have a diet industry a diving industry that there was this -- billion dollars a year."

" Always they understood that we got to be honest here there's a big cultural even political paradox of the center of this. America is been so successful in making food -- For everybody it's very inexpensive to -- in America that's good. That's good wife -- of the discretionary exactly message but some people as a result he too much I mean in. You know there have been studies that have suggested that in Europe where they suppress that sort of thing and then through legislation make only traditional food available you don't have this level of obesity we don't want to be Europe but we."

" You have a real problem here result of our success you know what I hear -- you're saying tax food now suddenly not here now. We can't raise the price of food so why not tell attack while work 21 well. Because people because it's so cheap how Heidi -- to raise the taxes on potato chips and Coca-Cola that."

" Don't let it would be a good question asked why some of as -- says some of the wrong foods are so cheap. And I think that can be traced to some of the agriculture subsidies in this country any. Corn and Heidi Africa toast -- serve. Are in an awful lot of food products that are super cheap and so people are making choices according to price they're eating the wrong so what about these."

" It's taxes on. -- Soda -- things like that every place in the put on the ballot that loose. Yeah and terrible idea and it -- Jerry talked about individual choice and in this is reason number 100 you don't want government health care is because when it's when it's the taxpayers paying for whatever. Results from overeating. It's everyone's problem instead of an individual but I tell you change it already is everyone's problem because the government already paid for 46% healthcare -- the public programs that -- and we don't so you're already paying for -- so should we try to do something well two things one that's not a direction we wanna move -- to keep. Then going down that path but the only thing is that the let's look at some further study here because the argument against cigarette smoking for many years was. Government pays for the results we've got to get people to stop because we're all paying the bill. -- Good point here yeah to have health care costs decline as a result I don't think so."

" That you. -- do we predicted the problem with with which. Obesity is it's good to see over consumption of foods so what you would wanna do is put attacks and eating too much not eating. You know a little bit of the wrong things so that's really attacks on obese people and that will never."

" politically I don't think you could do could -- is is is try to affect behavior with the price we charge insurance policies -- insurance policy so for example if -- better driver. You get you pay less for your free."

" I don't how well we -- pretty good example in the Safeway supermarket system which does have a program in which they have insurance premiums for their workers if they hit a target of weight appropriate weight. The premium gets reduced in other words they get money back for getting healthy and -- says that they have had some pretty significant success of this program. All right Dan last word we have to take one more break when we come back our hits and misses of the week. Time now for our hits and misses of the week Stanford's Paul international slowing body band hi tech swimsuits this week after several world records were ridiculously broke general even a guy who beat Michael Phelps that there was the swimsuit. So here we go again you know baseball doping was back in the news this week. And we within titanium golf clubs and things like that when track got rid of doping. A lot of records got very hard to beat it was just man against nature so what's the solution I think people simply have to decide you wanna watch sports played by people or sports played by robots I'm still for people sued and the suit."

" So all right senator. I'm my theory that the best way to destroy criminal enterprises to have the government take them over. I wanna give -- hit to New York State for bankrupting. Off track betting. This is a public benefit corporation. There was for a minute formed in the seventies because it was supposed to be. A way to you know get more money for New York State for all of the good things in your state was gonna do now it turns out that OTB is operating with a negative cash flow of something like. 600000. Dollars a month. And that's because it's near -- is taking more money out of the corporation. Then the corporation has earnings and a joke."

" I wanna get a hit this week to president Obama's energy sectors the secretary Steven Chu. Who's trying to kill one point five billion dollar. Energy research program into hydrogen powered cars. He says it's impractical. It won't come on -- for twenty to thirty years if it ever does. And you know of course she's totally reasonable totally sensible and opposing his plan is Democrats in congress. Who like these billions of dollars flowing to their. Labs and home states so we know who's gonna win there and I appreciate you shoot all right that's it for this week's edition of The Journal Editorial Report thanks to my panel in all of you for watching I'm -- you go we'll just deal right here."