America’s entitlement spending is so out of control that even the Obama administration no longer tries to deny this fact. Instead they are trying something truly Orwellian. They are claiming – after printing trillions out of thin air – that fiscal responsibility dictates that we spend more money. This is like an alcoholic explaining that the only cure consists of raiding an entire 7-Eleven beer cooler.
This “up is down, left is right” strategy is not particularly suited for our Vice President. He already has a well-known penchant for letting his mouth blurt out things that his brain really should have censored. Sometimes it’s racist jokes. Other times he’s asking paraplegics to stand and be recognized. This time he’s giving us Obamanomics in single sentence (CNSNews):
We have to go spend money to keep from going bankrupt.
If that sounds silly to you the reason is simple: it is silly. Although at least Biden does have one thing right. We are going bankrupt. The Director’s Blog (of the nonpartisan Congressional Budget Office) states the case plainly:
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.
Keeping deficits and debt from reaching these levels would require increasing revenues significantly as a share of GDP, decreasing projected spending sharply, or some combination of the two.
It doesn’t get much simpler than this. Spend less money, or make more money. The problem with making more money is that raising taxes further will lower economic recovery, and result in less revenue after all. Which means the only solution is to spend less.
And that’s where the fairy tale of Obamanomics comes in: if we throw money into an inefficient bureaucratic quagmire somehow more money will come back out. It’s the third-way. The solution that says “We don’t have to give up anything! We can all have better health care for less money!”
And it’s a load of malarkey.
The same CBO blog linked above includes this rather subtle line:
Rising costs for health care and the aging of the population will cause federal spending to increase rapidly under any plausible scenario.
Translation? Spending money to save money on health care will not work. CQPolitics.com summarized the CBO’s report this way:
The health care overhauls released to date would increase, not reduce, the burgeoning long-term health costs facing the government.
The obvious fact that Obamacare is going to cost more money, not save money, is leading to rebelliousness among the Democratic ranks. Yesterday NASDAQ.com ran an article about Democratic Representative Mike Ross. Described as a “centrist”, Ross is somewhat of a fiscal conservative. And this is what he had to say about Obama’s spending spree on health care:
Last time I checked, it takes seven Democrats to stop a bill in the Energy and Commerce Committee. We had seven against it last Friday; we have 10 today.
This means that Ross and the other Blue Dog Democrats are increasingly willing to come out publicly against Obamacare. Ross may be a Democrat, but he’s from Arkansas not Massachusetts. What’s more, he and other Democrats are reading the polls that show how concerned Americans are with deficits and debt.
Today the Associated Press came out with an article bearing the ominous headline: Obama losing some support among nervous Dems. Two additional Democrats are quoted in opposition to the plan:
Conservative House Democrats are balking at the cost and direction of Obama’s top priority, an overhaul of the nation’s health care system. A key Senate Democrat, Max Baucus of Montana, complains that Obama’s opposition to paying for it with a tax on health benefits “is not helping us.”
Another Democrat, Rep. Dan Boren of Oklahoma, tells his local newspaper that Obama is too liberal and is “very unpopular” in his district.
The Democrats have a good reason to be nervous:
Obama continues to be comparatively popular. But now recent national surveys have shown a measurable drop in his job approval rating, even among Democrats. A CBS news survey out this week had his national approval rating at 57 percent, and his standing among Democrats down 10 percentage points since last month, from 92 percent to 82 percent.
All of this brings us back to our original quote. Everyone knows that if you don’t have enough money to pay your bills and your in credit card debt up to your eyeballs and you’ve already taken out a second mortgage it’s not a great time to buy a brand new car because you think it will save you on gas mileage. It won’t work.
And neither will printing trillions more dollars to pay for health care reform that won’t improve health care and won’t lower costs.
The CBO knows it. Republicans know it. Democrats know it. And Americans know it.
The politicians are starting to feel fear again.
That’s the way it should be.