That using the current trends of the Obama Administration, the U.S. debt and annual deficit are on an unsustainable path to ruin. This came only hours after the CBO announced that the Democratic Health care plan would increase health care costs instead of reducing them…not a good day for the White House.
From the Director’s own testimony:
Under current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run. Although great uncertainty surrounds long-term fiscal projections, rising costs for health care and the aging of the population will cause federal spending to increase rapidly under any plausible scenario for current law.
Keeping deficits and debt from reaching these levels would require increasing revenues significantly as a share of GDP, decreasing projected spending sharply, or some combination of the two.
Brilliant. We already knew that, even if Barack Obama and Democrats appear to be lost on the issue. But here is the money statement:
The current recession and policy responses have little effect on long-term projections of noninterest spending and revenues. But CBO estimates that in fiscal years 2009 and 2010, the federal government will record its largest budget deficits as a share of GDP since shortly after World War II. As a result of those deficits, federal debt held by the public will soar from 41 percent of GDP at the end of fiscal year 2008 to 60 percent at the end of fiscal year 2010. This higher debt results in permanently higher spending to pay interest on that debt. Federal interest payments already amount to more than 1 percent of GDP; unless current law changes, that share would rise to 2.5 percent by 2020.
I just have one question: What is Barack Obama thinking?
There are only two answers. One is that he is so ignorant that he doesn’t realize the cliff he is driving off of. I don’t believe that.
The second alternative, however, is scarier…that Obama is doing this knowingly. That he doesn’t care if there is a cost explosion, and that ultimately this is a power grab unlike any we have known…the U.S. government virtually taking over one-sixth of the U.S. economy, with no checks and balances involved. For example…Obama continually says that health care costs are rising because of insurance companies. The CBO actaully disputes that. It argues that the main increase in health care costs comes from the quickly aging population…which, if you remember, is not covered by private insurance but is covered by Medicare, the largest socialized health care system in America.
I refer to my earlier post: we as Americans cannot compromise on this. And Americans are coming to reality on health care: Rasmussen now shows that 50% oppose the current health care plan, while 35% support it. The CBO now states that the House bill will add $240 billion to the deficit over the next 10 years…not a huge number. Of course, once you see how many of the costs are hidden, that number will skyrocket. Obama has promised not to sign anything that will add to the budget deficit. I have my doubts.
Send the health care bill back to the drawing board, because it is fatally flawed. Mr. Obama is not telling the truth on this bill. It will (by nonpartisan analysis, mind you), increase cost, move more people to a single payer system, decrease choice, and eventually bring about rationing. That is the first step in attempting to reign in the budget mess. If we allow the health care bill, which CBO has clearly said will cost more than the current baseline, to go forward, then we basically have accepted budget deficits as far as the eye can see. And as for the rest of the budget…the other shoe has yet to drop. The budget numbers for this quarter are so bad, the White House is hiding them from Congress until after the August recess.
America, is that what we really want?