The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

CBO: The federal budget is on an unsustainable path. Obamacare Bill won’t lower costs.

Posted by iusbvision on July 18, 2009

CBO:

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. Unless revenues increase just as rapidly, the rise in spending will produce growing budget deficits. Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress economic growth in the United States. Over time, accumulating debt would cause substantial harm to the economy.

CBO says the health care bill will just continue to escalate costs:

Congress’ budget watchdog warned Thursday that Democrats’ health care bills would not lower skyrocketing costs and would drive up government spending, undermining one of President Obama’s chief arguments for the overhaul.

Congressional Budget Office (CBO) Director Douglas Elmendorf said the plans already released by the House and Senate would keep costs rising at an unsustainable pace, fueling criticism from Republicans and some conservative Democrats that the overhaul will bankrupt the country.

The New York Times thought that this wasn’t news. See for yourself HERE.

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