Posts tagged ‘spending’

August 1, 2011

NEW PROJECTIONS ON OBAMACARE: “Instead of “bending the cost curve,” the new law will only increase government health spending and the number of Americans who will depend on taxpayer-subsidized, government-controlled coverage.”

HERITAGE: “Yesterday, the Centers for Medicare and Medicaid Services (CMS) released its new projections of national health spending trends through 2020. The findings, which estimate health care spending to reach more than $4 trillion by 2020, come as no surprise: Runaway spending has overtaken the United States health care system and is on the rise. More notably, the study confirms Obamacare does not “bend the cost curve” but only increases government’s share of spending in the health care system instead.

Already, the White House has tried to spin the report as a victory for its health care legislation. Writing for the White House Blog, White House Deputy Chief of Staff Nancy-Ann DeParle touted the all-time low growth rates of the past two years. Indeed, in 2010, health care spending remained an unchanged (yet still breathtakingly large) 17.6 percent of gross domestic product (GDP). In dollars, the nation was estimated to have spent $2.6 trillion, growing by a new historic low of 3.9 percent from the previous year. But as the authors explain, the reason for decelerated spending was the economic downturn and the impact high unemployment had on reducing private coverage—nothing to cheer about. Reduced payments to private plans under Medicare Advantage also contributed to a decrease in Medicare spending.

As the economy recovers and the major provisions of Obamacare kick in, national health spending is projected to grow at quite a clip—increasing, on average, 5.8 percent each year. By 2020, the nation will spend $4.54 trillion on health care, or close to 20 percent of GDP. (For the sake of comparison: In 2010, federal tax revenue totaled 14.9 percent of GDP, and all federal spending combined amounted to 23.8 percent of GDP.)

The most striking impact of Obamacare is its enormous expansion of the role of government in the health care system. The new law increases government health spending by adding as many as 25 million Americans to Medicaid….

[Read more  of “CMS Projections Confirm Runaway Health Care Spending” at heritage.org]

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August 1, 2011

DC CORRUPTOCRATS AND THE ART OF DEBT CEILING KABUKI THEATER

STEVE CHAPMAN: “Whoever wins this battle, the government’s sea of red ink will keep expanding. The publicly held debt now stands at about $11 trillion. Obama’s budget would have pushed it up to around $20 trillion by 2021. Under either the Boehner plan or the Reid plan, it would exceed $17 trillion.

All this screaming and squabbling, and for what? For a huge increase in the amount of borrowed funds that you and your descendants will have to repay.

Freshmen Republicans in the House rallied behind the “cut, cap and balance” plan, but it amounts to yet another stack of alluring promises. The cuts, $111 billion next year, are not itemized. Neither are the programs that would take a hit from the caps.

The “balance” refers to a constitutional amendment to ban deficit spending. But such an amendment—even in the very unlikely event it could be passed—wouldn’t balance the budget. It would merely commit Congress and the president to approve cuts in spending or increases in revenue that would eliminate the fiscal gap.

It’s not a solution. It’s a promise to come up with a solution, somehow, someday.”

[Read more of Steve Chapman’s “Washington’s Budget Theater” at Reason.com]

DARJEELING: What have we learned with this debt-ceiling “crisis”? NO ONE gets between Democrats/Liberals/Progressives/Socialists and their ability to spend your money. Republicans — Tea Party or not — always cower in fear at cutting meal-tickets, if it means alienating moderate voters (Republicans lost this battle for the simple reason they weren’t able to properly articulate why the world wouldn’t end if the debt-ceiling wasn’t raised). Moderate (“wishy washy”) voters always favor compromise for compromise’s sake because they don’t pay enough attention or have enough principle to know better. And the mainstream media always knows how to dumb the nuance out of any discussion about making real spending cuts and sending our country down the path of fiscal solvency.