The IUSB Vision Weblog

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

Democrat Leader Pelosi: If All Americans had affordable health care, we would still pass ObamaCare

Posted by iusbvision on January 4, 2011

Wow.

It is amazing to normal people how these politicians will just sit there and lie or repeat a manufactured lie/halftruth.

ObamaCare will create jobs: It sure will, tens of thousands of new government bureaucrat jobs.

The “non partisan Congressional Budget Office said that it would reduce the deficit”:

They said that because the Democrats made the CBO score it according to a set of assumptions that are not going to happen. Such as doctor reimbursements dropping and staying so low that Doctors could not afford to take Medicare patients and other such tricks to hide expenses or count money twice.

Even when the CBO is given realistic scoring instructions they still get it way off. The cost of every program is underestimated, the impact of tax cuts and tax increases is usually wrong. This is because the CBO uses near static Keynesian models to forecast.

I will slightly exaggerate the following example to make the point. McDonald’s sells one million hamburgers a year. Congress tells the CBO that we will place a $100 tax on each burger. How much money will the government take in?

CBO – 100 million dollars.

OK CBO, those nasty Republicans want to cut the tax from $100 to $1. Based on the previous model how much will the Republicans increase the deficit?

CBO – 99 million dollars.

Of course the truth is that no one is going to buy the burger with a $100 tax on each one, but lots of people will buy them if there is only a $1 tax. The reality is that the government will collect more money with the reduced tax rate, but that is not how the CBO would score it under these instructions.

Now you know why the CBO first 20 year outlay estimate for Medicare looked so affordable to Congress, they only underestimated the cost by nearly a factor of 10.

But when asked to give their own opinion when they are not being played or tied to obsolete models the CBO says things like THIS:

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.

Even Obama’s own Medicare Actuary says that ObamaCare will make healthcare costs go up on the states, on private insurance and as a percentage of GDP which makes it even less sustainable than it is now; also consider that these are from his Administration’s own rose colored scenario.

Politically the repeal effort, while unlikely to succeed until 2013, when there is a new president, is smart for Republicans, because the Democrats will have to defend the tax increases, the adverse selection spirals and all of the other problems with this bill all over again.

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