Wall Street Doesn’t Believe Elizabeth Warren Is Serious About Medicare for All

Is Elizabeth Warren’s Medicare-for-All phase-in plan a shrewd, realistic tactical move to win a public health system — or a bait and switch to play to M4A’s popularity without actually fighting for it? Wall Street thinks it’s the latter.

Source: Wall Street Doesn’t Believe Elizabeth Warren Is Serious About Medicare for All

People on the Left have been debating Elizabeth Warren’s health plan since it was released a couple of weeks ago — “realistic” or a ruse? I vote ruse, but I don’t want to make that argument myself right now. Instead, I’ll allow a research note from Barclays, which found its way into my inbox, do that work.

Here’s the opening paragraph of the report, by Barclays analyst Steven Valiquette:

Compared to her previous hardline stance on M4A, the new plan represents a significant change in tone, in our view. Not only does the transition plan push out the legislative agenda for M4A (potentially to year 3), but it also tacitly acknowledges the practical and political resistance of pushing too much change too quickly. In fact, we think Warren’s plan was carefully crafted to appease both progressive and moderate Democrats, and may afford her flexibility to pivot on health care issues throughout the Democratic primaries. All said, her near-term plan seems much closer to more moderate proposals endorsed by Biden and Buttigieg; and as such the “pivot” catalyzed HC

Services stocks on Fri with MCOs [managed care organizations] leading the way (+5% vs S&P 500 up 0.8%).

Health-care stocks rallied on the release of Warren’s plan, meaning that Wall Street — which isn’t always right, but does have some skill in decoding political bullshit — sees her plan as political bullshit.

Warren’s defenders say the scheme, to start with a “moderate” Dem plan and wait three years to push for the full program, is politically realistic, given congressional and other political constraints on ambitious social programs. That argument never made sense to me. If the success of the Right over the last few decades has taught us anything, it’s that going for maximalist demands gets results. You might have to make some concessions along the way, but you get some wins and also push the political center of gravity in your direction. If you start out already compromised, you won’t get anywhere.

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