"America is like a healthy body and its resistance is threefold: its patriotism, its morality, and its spiritual life. If we can undermine these three areas, America will collapse from within."
--Joseph Stalin

Wednesday, February 27, 2013

GAO Reports: Obamacare Will Likely Add $6.2 Trillion To National Debt Burden

Will Malven

$6.2 Trillion . . . $6.2 Thousand Billion . . . $6.2 Million, Million . . . It doesn't seem to matter how you say it, the numbers are so high that it is difficult to comprehend them.

That is how much the Government Accountability Office has reported "Obamacare," when fully implemented, will add to our already monstrous $16.5 Trillion debt over the next 75 years.

75 years? Oh, well that's not so bad, is it?  After all, that's only $83 Billion/year in additional spending for the next 75 years.
"A billion here, a billion there, pretty soon your talking real money."
--attr. to Sen. Everett Dirksen (R-IL)
That "$83 Billion" sounds awfully close to the $85 Billion in sequester cuts (split over 2 years) the Obama Administration and Democrats are screaming about being so large that hundreds of thousands of teachers, firemen, policemen, rape-victims, orphans, circus clowns, Savile Row tailors, animal trainers, carney barkers, and untold souls will suffer unimaginable privation and absolute destitution should they occur (funny how, when it suits Democrat objectives, $80 Billion is a huge amount of money, but when it doesn't suit their purposes, $80 Billion is merely a drop in the bucket).

This is the next story that will be studiously ignored or blithely explained away by the MSM and other Obamapologists as our nation plummets towards the economic abyss that most rational economists see looming in our near future.

Anyway you slice it, this merely confirms what Republicans have been saying about "Obamacare" from day one, that it's a budget buster and will add hundreds of billions of dollars to our already burgeoning debt.  Now the GAO has confirmed our worst fears.

From The Hill
GAO: Health law will increase deficit if cost-cutting steps stop
By Elise Viebeck - 02/26/13 03:12 PM ET

". . . Assuming the law is enforced as-is, the U.S. deficit will decline 1.5 percent as a share of the economy over the next 75 years, according to the GAO. Auditors attributed 1.2 percent of this improvement to the Affordable Care Act.

Under a different set of assumptions, the law has the opposite effect over time, the GAO said -- the deficit will increase by 0.7 percent of gross domestic product (GDP) if the law's cost-containment measures are phased out.

The report attributed this potential increase in part to the law's most expensive features -- the Medicaid expansion and the provision of insurance subsidies.

The report was requested by Sen. Jeff Sessions (Ala.), the top Republican on the Senate Budget Committee. On Tuesday, he and his office jumped on the figures to say that the healthcare law will increase the deficit by $6.2 trillion over 75 years.

To arrive at this figure, Sessions's office assumed the second scenario, in which the law's cost-containment measures end, and added up 75 year's [sic] worth of deficits using GDP projections from the Centers for Medicare and Medicaid Services . . ."

The left, via MediaMatters (from whom all MSM "journalists" get their marching orders), has already dismissed this information by claiming that the GAO report only states this as a worst case scenario should all of the cost-containing measures written into the "Affordable Healthcare Act" not be enacted or retained.  Oddly, they fail to mention just what those "cost-containing measures" are--or not so oddly since they include things like "death-panels" and the $700 Billion dollars in cuts to Medicare payments to doctors and hospitals.

Does anybody (other than the Obama propagandists at MediaMatters) really believe that those "cost-containing measures" will survive in this political environment--even with Democrat politicians--once the voting public becomes fully aware of them?
NOTE:  One could easily label the Obama faithful at Media Matters gullible and naive if it weren't for the fact that they are paid disinformation peddlers working (indirectly) for and at the behest of by the Obama Administration, the Democrat Party, and their liberal directors.  As it is, they are nothing more than malevolent Democrat Party hacks writing apologetic disinformation intended to deceive the American people and lull them into a state of apathy and lethargy so that Obama and his fellow-travelers can implement their Marxist policies with the least possible opposition.  They are aided in their efforts by the lock-step march of MSM reporters in parroting their disinformation.
The reasoning is straight-line logic, the math elementary, which is why it escapes liberals completely.  You can't add 30-40 million uninsured people to the roles, broadly expand coverage to include 26-year old "children," and force coverage of "pre-existing conditions" onto an actuarially-based system of payment without something giving.  It just doesn't stand the laugh test.

Insurance rates are based on the concept of distributed risk.  In any given pool of people, you will have a certain number who will be ill, a much greater number who are healthy and at low risk to become ill at any given time.  The cost of treatment of those who are ill is distributed among all the insurance premium payers and so premiums remain as low as is reasonably possible based on the probability of any one person becoming ill according to actuarial calculations.

When the pool of people is greatly expanded to include those for whom the probability of becoming ill is much greater, as in those with pre-existing conditions or those who were previously unable to afford to pay for healthcare and who therefore are a greater health-risk (poorer diet, riskier habits and lifestyles) then the collective average risk associated with any one person in that pool rises and thus premiums must inevitably rise for all.

This is straight-line logic and forms the basis of conservative predictions and the de facto evidence now being reported by the GAO, that the Affordable Healthcare Act will cause healthcare costs to sky-rocket for every citizen (just as the previous euphemistically named "Affordable Housing Act" led to sky-rocketing costs in housing).

Liberals lack the higher-order mental discipline necessary to follow straight-line logic.  They're too easily distracted by the fairy-dust, will-o-wisps and magic bunny-trails their leaders leave for them--the siren song Media Matters and their echo-chamber MSM sing leads them into their unreal realm of illogic.

Under Democrat direction (or misdirection) since FY 2007 our national debt has soared from just under $9 Trillion (yes GWB was still president in 2007 and 2008, but Democrats controlled both houses of Congress) to $16.5 Trillion in FY 2012, an increase of 7.5 Trillion dollars, or 83% in just 6 years (60% under Obama alone).

Now with "Obamacare," Democrats have committed our federal government to an additional 6.2 trillion dollars in deficit spending and doomed every working citizen to paying more money for less (and lower quality) healthcare.

Welcome another blessing from our Fearless (Clown Prince Narcissist in Chief) Leader and his Democrat Party Fellow Travelers. 

Long Live Our American Republic!!!!

1 comment:

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