Posts Tagged ‘$894 billion’

China Fears ObamaCare Causes Economic Cancer

November 17, 2009

The Chinese have a little different medical philosophy than Western doctors.  But when it comes to dollars and cents, Chinese math and Western math are very much alike.

The Chinese are looking at the numbers of dollars (trillions of dollars, mind you) of ObamaCare.  And they do not like the rapidly growing economic cancer that they see.

From Reuters:

James Pethokoukis
November 16th, 2009
China questions costs of U.S. healthcare reform

Guess what? It turns out the Chinese are kind of curious about how President Barack Obama’s healthcare reform plans would impact America’s huge fiscal deficit. Government officials are using his Asian trip as an opportunity to ask the White House questions. Detailed questions.

Boilerplate assurances that America won’t default on its debt or inflate the shortfall away are apparently not cutting it. Nor should they, when one owns nearly $2 trillion in assets denominated in the currency of a country about to double its national debt over the next decade.

Nothing happening in Washington today should give Beijing any comfort or confidence about what may happen tomorrow.  Healthcare reform was originally promoted as a way to “bend the curve” on escalating entitlement costs, the major part of which is financing Medicare and Medicaid. That is looking more and more like an overpromised deliverable.

For instance, a new study from the U.S. government’s Centers for Medicare and Medicaid Services finds that the healthcare reform bill recently passed in the House of Representatives would increase healthcare spending to 21.3 percent of GDP by 2019 compared with 20.8 percent under current law. That’s bending the curve the wrong way. The study also questions the “long-term viability” of the $500 billion in Medicare cuts meant to help pay for expanded insurance coverage.

In addition, the CMS study gives a clearer cost estimate than the one provided by the Congressional Budget Office. According to the CBO, the 10-year cost of PelosiCare is $894 billion. But that analysis includes early years with little government spending, According to the CMS, the House approach would cost $1 trillion from 2013-2019, or some $140 billion a year when fully put into effect.

Few realists in Washington think any of the current reform plans make a significant dent in the long-term healthcare cost to government. Indeed, the Senate Budget Committee recently held hearing about creating a bipartisan commission to find solutions to America’s entitlements problems.

If healthcare reform really bent the curve, there would be a no need for such a commission to do Healthcare Reform 2.0.

The Chinese might want to keep up the questioning
.

Think about the $894 billion estimate, versus the new $1.4 trillion estimate ($140 billion times 10 years) which has based on more accurate information (The CBO estimate was based on the Democrats’ warped claims and figures).  The difference is $506 billion – stacked right on top of that $894 billion.  We’re talking about an increase of 56.6%.  That’s a rather huge difference.

I’m glad that the Chinese are smart enough to realize that playing games with numbers isn’t going to get the job done.  I wish the American people would be that smart.

It is frankly amazing that Obama is literally to the left – and WELL to the left at that – of a communist country when it comes to attempting to forge a big government monopoly over yet another 1/6th of the economy of a once-great capitalist nation.

China is worried about the United States imploding under the weight of its own indebtedness, and therefore being unable to pay them back or buy their products in the future.  If we have any wisdom left, we would be worried about the same thing.

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Even New York Times Pointing Out Democrats Lying Over Cost Of Obamacare

October 31, 2009

When the Gray Lady says that Democrats are lying, you can rest assured that they are not only lying, but lying their weaselly little heads off.

From the New York Times:

In a news release shortly before House Democrats held a rally to unveil the bill, Ms. Pelosi’s office wrote: “The legislation’s coverage cost will be $894 billion over 10 years, fully paid for.” And in her speech at the event, Ms. Pelosi said: “It reduces the deficits, meets President Obama’s call to keep the cost under $900 billion over 10 years, and it insures 36 million more Americans.”

But…

… a closer look at the budget office report suggests that the number everyone should have reported was $1.055 trillion, which is the gross cost of the insurance coverage provisions in the bill before taking account of certain new revenues, including penalties by individuals and employers who fail to meet new insurance requirements in the bill.

According to the budget office, the overall cost of the bill is more than offset by revenues from new taxes or cuts in spending by the government, resulting in a reduction in future budget deficits of $104 billion.

All of these figures cover a 10-year period from 2010 to 2019.

And how do Nancy Pelosi’s aid justify themselves?  By pointing out that, since Democrats in the Senate lied, House Democrats have a right to lie, too:

Aides to Ms. Pelosi defended their decision to focus on the $894 billion net figure. They also pointed out that in an “apples to apples” comparison — $1.055 trillion for the House bill vs. $829 billion for the Senate Finance measure — the House bill is projected to insure 7 million more people.

The cost of the health care legislation is incredibly significant these days.  It turns out that even Democrats are beginning to understand that -gasp – soaring deficits actually matter.

The fact of the matter is, the CBO – even when they’re trying to be honest – aren’t very good at counting the costs (which Jesus said was kind of important as a fundamental undertaking before starting something major).  The fact of the matter is that the government has historically underestimated the costs of their projects by an average factor of seven.  And some of their worst miscalculations of all have been in the category of health care.

The Wall Street Journal provided this handy-dandy little illustration of that sad history:

It’s certainly not the CBO’s fault, mind you.  Not when Democrats have been routinely and blatantly playing numbers shenanigans to hide the real costs of their massive government takeover from the American people.

Harry Reid actually made a staggering admission while trying to prevent the Democrat-special-interest-anathema tort reform.  He said:

HARRY REID: “He talked about CBO saying that there would be $54 billion saved each year if we put caps on medical malpractice and put some restrictions — tort reform — $54 billion. Sounds like a lot of money, doesn’t it, Mr. President? The answer is yes. But remember, were talking about $2 trillion, $54 billion compared to $2 trillion. You can do the math. We can all do the math. Its a very small percent.”

[Youtube]

And I would love to bet any Democrat that the ultimate cost of this monstrosity will be far greater than $2 trillion.

The cost of the Democrats’ health care “change” will become yet another giant anchor stopping the forward momentum of our economy.  And as it leads to economic collapse, it will increasingly lead to medical rationing and the deaths of senior citizens by government-mandated medical neglect.

Update, November 2: Oops.  Did I say $1.055 trillion?  I’m sorry.  It’s now $1.2 trillion.

The health care bill headed for a vote in the House this week costs $1.2 trillion or more over a decade, according to numerous Democratic officials and figures contained in an analysis by congressional budget experts, far higher than the $900 billion cited by President Barack Obama as a price tag for his reform plan

The actual deficit figure is dramatically higher.  For instance, we’re STILL waiting for the cuts in Medicare that Bill Clinton and the Democrats promised in 1993.  In fact, we’re STILL waiting for ANY cuts in Medicare.  So you can safely add a minimum of $500 billion to the actual deficit that Obamacare will create; because there is no way that Democrats will do what they are claiming they will do and slash the Medicare budget.