One of the priorities of the new Republican majority in the House is to repeal ObamaCare — though this would in effect be a purely sympolic move since a repeal would have no chance of passing the Senate, much less surviving an Obama veto. Nonetheless, pundits are having their say over the matter, and one of the odder arguments being advanced is that repealing ObamaCare would result in increasing the budget deficit. This has allowed Democrats to accuse Republicans of not only wanting sick people to go without treatment, but of wanting to spend more money than it would cost to insure them. How exactly does this math work?
The Congressional Budget Office projects that the health care law, if implemented as promised, would save $230 billion over the next decade. There are two important words in that sentence: projects and if.
[Updates at the bottom of this post as of 5:52am CDT on AD 9-9-2009]
News is emanating from the White House that President Obama’s monumental speech will push for the infamous public option. It is well known that most Republicans will call this a deal breaker but at the same time liberal Democrats will say the opposite that no Health Care bill will get through if it doesn’t contain a public option.
Jonathan Weisman and Janet Adamy have reported in the Wall Street Journal that President Obama will be pushing for the public option. It is also being reported that there will be penalties imposed to those that are not paying for Health Care, regardless of the reasons.
White House aides acknowledged they expect little Republican support if any.
A look at the federal budget since 2000, with projections, for what little they are worth, by the White House and the Congressional Budget Office to 2019. By CBO estimates last week, the budget deficits between now and 2019 would total $9, 300, 000, 000, 000.00. The entire cost of WW2 for the US in 2008 dollars was 3.6 trillion. This year the budget deficit will total 13% of our gross domestic product. This isn’t economic policy, it is lunacy. These type of deficits are completely unsustainable, and we are running towards national bankruptcy. It is impossible to borrow these type of funds from abroad. We will simply create the funds out of thin air. The long term impact on our children and their children can be easily imagined. As the Heritage Foundation points out, this is a completely bi-partisan disaster. Politicians have acted like teen-agers with stolen credit cards for far too long. However, this will stop. It will stop either by voters throwing out of office the fiscally irresponsible, or, much more likely in my estimation, the economy will simply hit a brick wall. This will not, cannot, go on. How it is stopped is up to us.
Update I: The President of the EU slams current US economic policy as a road to hell. I never thought I would live to see the day when a President of the EU would have more economic sense than a President of the US.
“Bond prices fell after the auction of $34 billion in 5-year Treasury notes. The yield on the benchmark 10-year Treasury note, which moves opposite its price, jumped to 2.77 percent from 2.71 percent late Tuesday. The yield on the three-month T-bill rose to 0.19 percent from 0.17 percent Tuesday.
Investors gave an unexpectedly cool response to the note sale just a day after a $40 billion auction of 2-year notes suggested strong demand. The government is running up huge deficits in order to fund an array of plans to provide stimulus to the economy and support to the ailing financial system. Any suggestion that demand for U.S. government debt is weakening is a negative for stocks, simply because Wall Street has been relying so heavily on the government’s rescue plans.
The surge of worry over the debt auction wiped out the market’s early optimism in response to durable goods and home sales data.”
Has anyone ever wondered if it is possible that one can land in a financial crisis when one has a steady income, no debts, and a large reserve of money in case of emergencies? Certainly, I suppose, if something devastating comes around, like an accident that requires weeks in the ICU, surgeries, and a long rehabilitation, that could bankrupt a person. Yet such accidents, on a whole, are rare, and most people who live a financially responsible life never have to plead for a bailout.
When we look at our current financial crisis nationwide, I can’t help but wonder what people are thinking. President Obama has promised us trillion dollar deficits for years to come in an effort to restore our economy. Like most right-leaning folk, I’m under the impression that our current crisis has come from overspending, living beyond our means, and not being prepared for when we hit bumpy times in the economy (like $4/gallon gas, which drives prices up all around). Perhaps, if this view is incorrect, someone will be willing to explain to me why it is so. But my impression has been that first, people individually are consumed with buying, buying, buying, even when they don’t have the money to buy. I have friends who, though they grossed over $60,000 a year, were still living paycheck to paycheck because of their deficit spending. I’ve seen people who, upon receiving their government money, have gone and blown it on new cell phones (that are shut down after two delinquent months), on fancy steack dinners, and so on, instead of buying necessities or saving up what they can. I’ve seen people struggling with hundreds of thousands of dollars of accumulated debt that came from student loans, house loans, car loans, credit cards, and so on. This is just what I’ve seen. What I’ve heard–word of mouth, or in the news, or on blogs–is even worse.