Supreme Court upholds Obama Care; Europe continues to debate how to rescue economy from bond market blackmail

The Supreme Court in a 5 to 4 decision with Chief Justice Roberts siding with the majority has upheld most of the Affordable Care Act by ruling its provisions constitutional under the federal powers of taxation. Four of the liberal judges considered it constitutional under the federal powers to regulate commerce and trade but Justice Roberts rejected that approach but accepted the act and wrote the majority decision  under the powers to tax. The only part of the act struck down was the right of the federal government to impose penalties upon states refusing to expand medicaid, the health insurance program for low income and destitute people. This might turn out to be a problem that will need correcting but for the time being the decision is a major victory for President Obama and the American people. For his part Governor Romney and the Republicans insist if they capture the Presidency they will repeal the act on day one. the entire decision is available on the wsj site and from the court. Justice Ginsburg’s dissent on the power to regulate commerce is very revealing and informative.

In Europe the Eurozone leaders continue to debate how to rescue their economy from bond market blackmail. Chancellor Merkel appears to continue to oppose a major stimulus and the use of eurobonds and continues to push for fiscal austerity. Some of the others are in favour of the ESM buying government bonds directly from governments in the primary market or perhaps a portion of the debt above a certain threshold. This would help although not do much for employment creation unless governments spent the proceeds on direct job creation. We await their decision with great interest.


About haroldchorneyeconomist

I am Professor of political economy at Concordia university in Montréal, Québec, Canada. I received my B.A.Hons (econ.&poli sci) from the University of Manitoba. I also completed my M.A. degree in economics there. Went on to spend two years at the London School of Economics as a Ph.D. student in economics and then completed my Ph.D. in political economy at the University of Toronto. Was named a John W.Dafoe fellow, a CMHC fellow and a Canada Council fellow. I also was named a Woodrow Wilson fellow in 1968 after completing my first class honours undergraduate degree. Worked as an economist in the area of education, labour economics and as the senior economist with the Manitoba Housing and Renewal Corporation for the Government of Manitoba from 1972 to 1978. I also have worked as an economic consultant for MDT socio-economic consultants and have been consulted on urban planning, health policy, linguistic duality and public sector finance questions by the governments of Manitoba, Saskatchewan,the cities of Regina and Saskatoon, Ontario and the Federal government of Canada. I have also been consulted by senior leaders of the British Labour party, MPs from the Progressive Conservative party, the Liberal party and the New Democrats on economic policy questions. Members of the Government of France under the Presidency of Francois Mitterand discussed my work on public sector deficits. I have also run for elected office at the municipal level. I first began to write about quantitative easing as a useful policy option during the early 1980s.
This entry was posted in austerity, deficit hysteria, deficits and debt, European debt crisis, European financial stability fund, European unemployment, France politics+economy, Greek sovereign debt crisis, Italian debt crisis, monetary policy, quantitative easing, Uncategorized, unemployment. Bookmark the permalink.

1 Response to Supreme Court upholds Obama Care; Europe continues to debate how to rescue economy from bond market blackmail

  1. romain cansaran says:

    Hi Professor Chorney I’m ROmain Cansaran and I had contacted you two weeks ago about a reference letter for my application to the London School of Business and Finance in International Business. I am contacting you to ask you if you had received the email I had sent you with the questionnaire that you have to fill in for the school as the deadline was the end of this month. So please if you get this before tomorrow I have sent you the full form at but tell me if you want to get it on another email address.
    Thank you Professor.


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