Universal health care should be the first priority.

THE NY TIMES reported today that AIG will need another $40B on top of the 121B already spent. Without addressing the underlying landuse issues, of failure on the outskirts of the driving economy, we are leaving this problem to fester and worsen.

Hurricane Katrina and the fires in California have created other problems with insurance companies. Florida, Louisiana were looking to join CA in providing state insurance for disasters because insurers were bailing out. The load on employers have also taxed the ability of insurance companies to provide health insurance and states are trying to grapple with this problem too.

HR 676 cost of a $60bn-$110bn plan to provide universal health insurance for Americans is insignificant relative to the broken system we have today. We should replace it and reduce out costs quickly and help employers reduce their burden. This will allow employers to use critical funds elsewhere in rescuing their business. Then the government can tackle the investment in the urban environment to reduce the need to drive with the balance of the bailout bill.

Bailing out GM and other losers of the past system without using a gas tax is just bad policy.