Monday, July 20, 2009

“Pay No Attention to the Deficit Behind the Curtain” 

As the Obama Administration postpones the release of the mid year budget update. No reason to suspect that they’re hiding how much the deficit and debt have increased until after Congress votes to nationalize healthcare. Nope, no reason. None at all. Nothing to see here, folks, so move along, move along.

Even the Congressional Budget Office (CBO) is estimating the healthcare hit to the debt / deficit to be about $1 trillion over 10 years. After some Senate noodling with projections, the new score was about $611 billion over the same time frame.

Since this was supposed to “bend the cost curve” and save us money, this is a complete trainwreck.

Also, when was the last time the government launched a major new entitlement scheme that actually came it at or under the estimated cost? Social Security? Medicare? Medicaid? The long term record here isn’t very encouraging.