I'm not sure what McMegan thinks is going on in Massachusetts, but it's hard to imagine a Massachusetts style reform stifling innovation through relentless cost-cutting because the Massachusetts' reform model doesn't actually cut costs, and certainly doesn't cut industry profits. Many would say that that's exactly the problem with the reform, but nevertheless: Massachusetts is a pure access expansion. Attacking it for cutting costs too much, or not cutting them enough, is like attacking me for being a bad fireman. I am not a fireman, am not trying to be a fireman, and should not be judged for my effectiveness at putting out fires.The broader point of her post is that cutting spending inevitably cuts innovation. This may or may not be true. Two main objections, which neither Megan nor I can answer: THE PERILS OF INNOVATION.
I'm not sure what McMegan thinks is going on in Massachusetts, but it's hard to imagine a Massachusetts style reform stifling innovation through relentless cost-cutting because the Massachusetts' reform model doesn't actually cut costs, and certainly doesn't cut industry profits. Many would say that that's exactly the problem with the reform, but nevertheless: Massachusetts is a pure access expansion. Attacking it for cutting costs too much, or not cutting them enough, is like attacking me for being a bad fireman. I am not a fireman, am not trying to be a fireman, and should not be judged for my effectiveness at putting out fires.The broader point of her post is that cutting spending inevitably cuts innovation. This may or may not be true. Two main objections, which neither Megan nor I can answer: 
