I know, given his past articles on the topic, that Krugman swallowed his pride a little to praise, even if indirectly, the Obama healthcare plan. But compared to McCain we're talking about a slight improvement compared to a completely nonsensical policy. Many Americans currently receive health care through their employer. For providing these benefits, employers are not taxed on the money they contribute. Under McCain's tax plan, they will, causing an estimated 20 million to lose their healthcare--on top of the 47 million already living without it. And is the McCain campaign "conservative" in the sense of being more cost effective and less bureaucratic? Nope. The McCain policy will increase spending by insurance providers for reasons Krugman adduces.

Money quote:

In short, the McCain plan makes no sense at all, unless you have faith that the magic of the marketplace can solve all problems. And Mr. McCain does: a much-quoted article published under his name declares that “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.”

I agree: the McCain plan would do for health care what deregulation has done for banking. And I’m terrified.