Friday, August 7, 2009

Trust Us, The Government Has Been So Successful in Controlling Spending on Entitlement Programs

We are asked by the Democrat politicians to believe that ObamaCare will be paid for by cost cutting while the Congressional Budget Office, even under pressure from Obama, stands by its figure of a $1 trillion deficit over ten years. What gets less attention is the projected deficit beyond ten years and the track record of government programs that always exceed forecasts by huge amounts.
Example 1: Medicare started in 1965 and the forecast for cost for 1970 (just five years forward) was $3.1 billion. Would you be surprised that the actual cost was more than double at $6.8 billion? The forecast for 1990 was a mere $12 billion. Would you be surprised that the actual cost was more than a factor of ten higher at $110 billion? And in current 2009 fiscal year, the cost for Medicare is heading toward $460 billion. Who is willing to trust Obama, or the CBO, on ObamaCare cost forecasts? Higher taxes and health care rationing are inevitable, and even with that there will be huge deficit spending in the trillions of dollars.
Example 2: Cash for Clunkers was budgeted at $1 billion for 14 weeks. The $1 billion was spent in one week. A universal government run health care system is orders of magnitude more complicated than Cash for Clunkers.
Example 3: The 16th Amendment to the Constitution allowing an income tax was passed because it was promised that only the top 1% of income earners would be taxed. This promise quickly got out of hand and toady 60% of income earners pay income taxes.
Example 4: Social Security was to be funded by a 1% (FICA) tax each on employees and employers. Today, the tax is nearly 8% each.
Everyone could add examples to this list with details about the U.S. Postal Service, cost overruns in the Defense Department, Medicaid and more.
NO CHANCE that ObamaCare will not involve huge deficit spending and higher taxes!
And in the words of Dr. Ezekiel Emanuel, Obama's advisor on medical ethics, " health services should NOT be guaranteed to those who are irreversible prevented from becoming participating citizens". This probably applies to anyone on Medicare and many others with serious illnesses who cannot fully recover. You shouldn't need a dictionary to figure out that this is only one aspect of health care rationing.

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