The $1 Trillion Health Care Debacle

by Sal on July 15, 2009

in Economy,Politics

The Democrats in the House of Representatives released their version of health care reform yesterday, and the CBO clocked it in at a cool $1 trillion over 10 years.  As Michelle points out, it’s even worse than that.  To keep the numbers down, most of the plan doesn’t go into effect until 2015, back loading the bulk of the $1 trillion cost in the latter half of the next decade.  This means that the overall cost will likely be much higher (in the range of $2 trillion over 10 years, from 2015 to 2025.  Because the CBO only scores 10-year intervals from time of passage, the Democrats are hiding the true cost) and hitting just when Medicare and Social Security will be, by conservative estimates, going belly-up. Additionally, the preliminary scoring of the bill does not take into account many factors, such as government administrative cost.  Finally, the bill doesn’t even cover all uninsured, it only ends up covering 96% of the population.

Obama’s health care must be in trouble, as he will be appearing on all three networks of the state-run media today to push his plan.  With a CBO scoring like that, it’s no wonder.  Expect lots of obfuscation, half-truths, and strong man arguments from the President as he tries to lie his way to passing this radical takeover of our economy ever attempted.  If Obama gets his way, we will soon be subject to rationed health care and high costs, and an industry that will no longer have any incentive to innovate and come up with new cures.  Unless of course, you belong to a union, because for some reason they are exempt from all of this.  Welcome to our new Socialist paradise.  It’s not too late to stop it, but it isn’t going to be easy.

{ 2 comments… read them below or add one }

Ryan July 15, 2009 at 10:27 am

If this passes, the only way to keep the National Health Service in tact will be to raid the Social Security trust fund — but that’s after the rich-tax spreads to the not-so-rich, a VAT on goods and services, and the transfer our employers make from their current system to the cheaper, government-run one. It’s like watching a train-wreck in slow motion.

Part of me (a small part) isn’t too too worried about this, even if something passes. It is completely unsustainable economically and eventually politically. Some polls are beginning to reflect that. Like Margaret Thatcher said: the problem with socialism is that eventually you run out of other people’s money. The part that worries me, however, is how we’re going to get out of this mess, should something pass. Rolling back the government will happen in due time when the pendulum swings back (maybe by 2011 — fingers crossed), but that transition will be a dozen times uglier than what we’re experiencing now — we as a nation haven’t started paying back the new bills yet.

The previously “worst recession since the Great Depression” was when Reagan and the supply-siders tried to exorcize the inflationary demons of Keynesian Carterism on the US economy. We got out of it and into prosperity, but with lots of pain at first. Obama wants this now because we haven’t felt what it’s going to be like to pay back the bill on his spending yet. He knows it will hurt us terribly economically, yet he’s trying to do it anyway.


Moogie P July 15, 2009 at 3:33 pm

How best shall we go about demanding that Congress cancel its own current health care plan and enroll in GuvCare? That might scare them out of enacting it.


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