Categorized | Commentary/Editorial

GAO: Obamacare will add at least $6.2 trillion to the national debt





And that’s probably a best-case scenario. Let’s flash back to September 9, 2009 when Obama delivered his infamous "You Lie" speech to Congress. The speech came at the end of a summer in which people across the country, led by Governor Palin, came within an eyelash of stopping Obama’s disastrous health care takeover which is about to cut off what little economic growth we’re experiencing like a guillotine. In order to revive after that Tea Party summer, Obama and his lap dogs in the media and Congress had to lie repeatedly about the plan’s cost. Here’s an example from the aforementioned speech:

I will not sign a plan that adds one dime to our deficits — either now or in the future.  (Applause.)  I will not sign it if it adds one dime to the deficit, now or in the future, period.  And to prove that I’m serious, there will be a provision in this plan that requires us to come forward with more spending cuts if the savings we promised don’t materialize.

Even a couple weeks after Obama had rammed his unpopular plan through Congress when he has no more reason to lie, he still couldn’t help himself:

This represents the biggest deficit reduction plan since the 1990s,” Obama said. “Now there has been a lot of talk about deficits lately and rightly so. These numbers keep me up at night.

I’m sure Obama’s losing a lot of sleep at night worrying about deficits, heh. I digress. Obama wasn’t the only one peddling Obamacare as a deficit reduction plan. Right after he signed the bill, then House Speaker Nancy Pelosi called it "the single largest deficit reduction effort in nearly two decades". More recently, Pelosi claimed that "the main reason to pass [Obamacare] was to decrease the deficit." There’s plenty more of this BS but you get the picture. Of course nobody familiar with the basic laws of mathematics believed any of this, but, as I explained at the time, Obama was able to game the system with plenty of help from a pliant media so that a (barely) sufficient number of lawmakers went along with the subterfuge:

Garbage in, garbage out. The CBO was asked to score a ten-year plan which spends basically nothing in the first four years. This enables the Democrats to make the claim that it only costs $940 billion "over 10 years". They say a picture is worth a thousand words and the following graph, produced by Phillip Klein at the American Spectator, proves this to be true:


Hmmmmm. I can’t put my finger on it but something doesn’t look quite right.

Today the General Accounting Office (GAO) threw some cold water in the faces of anyone who still believes that Obamacare is fiscally sane and will somehow reduce the national debt. Via Andrew Stiles at the National Review:

The GAO report is essentially the first attempt to isolate and calculate Obamacare’s impact on the deficit beyond the traditional ten-year budget window. GAO ran two simulations “based on broad sets of assumptions about health care spending and other components of federal spending and revenue” over a 75-year period. First, a baseline-extended simulation, which “illustrates the long-term outlook assuming federal laws (applicable at the time the simulation was run) remain unchanged,” and second, an alternative simulation, which “illustrates the long-term fiscal outlook assuming historical trends and policy preferences continue.”

The baseline scenario is far more optimistic, largely because it does not take into account the concerns — expressed by the Congressional Budget Office (CBO), the Centers for Medicare & Medicaid Services (CMS) Trustees, and Medicare’s chief actuary — about “whether certain cost-containment mechanisms included in PPACA can be sustained over the long term.”

However, the GAO report concluded that even under these “more optimistic assumptions,” Obamacare’s cost-control provisions “were not sufficient to prevent an unsustainable increase in debt held by the public.”

The alternative scenario, which incorporates the more realistic “alternative projections” suggested by CBO, the CMS trustees, and the chief Medicare actuary, is even more dire. Under this scenario, the “primary deficit” increases by 0.7 percent of GDP over the 75-year period. The GAO does not put a dollar value on that figure, but Senate Budget Committee staff has calculated, and GAO has confirmed, that it would amount to a $6.2 trillion increase in the federal deficit.

In his piece, Stiles also links to a video in which Senator Sessions discusses the GAO report:

Again, none of this is a surprise. It does get me to thinking, though. In my first quote above where Obama claims Obamacare won’t add "one dime" to our deficits, he also said there would be a provision in Obamacare that "requires us to come forward with more spending cuts if the savings we promised don’t materialize." Notice he said "spending cuts" and not "tax increases". So … when can we look forward to Obama’s proposal for $6.2 trillion in spending cuts? Just asking.

 



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  • joseph agibinik

    "We don’t have a spending problem."

    • joseph agibinik

      Sarc

  • nationscome

    Politicians are being paid large sums to keep us cornered. They do not represent the working class. We must march on Washington DC and fire them all. Democrats and Republicans. The people must take our country back.

  • nationscome

    Are you ready to march on Washington DC for our freedom from corrupt officials. Let’s clean the White House from the stains of corruption. Talk is getting us nowhere! Put up or shut up!

  • nationscome

    Sarah Palin qualifies, knows and
    understands the dynamics of why she was ousted and ultimately shunned by Fox
    News better than any of us can ever guess or even imagine–trust
    me! I applaud her present efforts because, as a former member of the
    inner circle she will be the most recognized, prominent, respected, influential
    and potent voice that drives a very large, sharp and long spike deep into the
    heart and coffin of the invasion of the super PAC mob (the very group whose
    money groomed her for the stage) and its attempts to reign over the working
    class citizens as she works tirelessly to avenge their handling of her, and to
    dismantle their stranglehold on our officials, our political system and our way
    of life. Her February 12, 2013, Live Tweets in response to President
    Obama’s State of The Union Address is right on the mark. And they apply to both Democrats and
    Republicans alike as the way they see and manipulate all working class
    Americans. With voices like Sarah
    Palin’s leading us and other like minded people in high places, who have been similarly
    duped and disillusioned, we will let everyone know loud and clear, once and for
    all that: WE THE AMERICAN PEOPLE ARE
    NOT FOR SALE EVER AGAIN and WE THE AMERICAN PEOPLE WILL NOT BE ENSLAVED EVER
    AGAIN by anybody or by any
    group or by any ideology of dominance.

  • nationscome

    Sarah you’ve transcended any party, and you’re now poised to take your well earned place as a true leader of the American working class. Your slogan should read: THE PEOPLE4PALIN. We all need you now! We don’t need another lying corrupt politician financed by big business and the super PACs. You’ve been there. Forget about this side or that side. All of us are suffering under the crush of lies and corruption. We need you to lead us on a march to the heart of Washington DC to put an end to the people’s suffering.

  • nationscome

    Sarah, LET’S MARCH ON WASHINGTON DC! You have all that it takes to organize and lead us! Are you with us? Let’s do it!!

  • nationscome

    The exchange of words is getting us nowhere. The very groups that we seek to unseat are professionals of empty and meaningless dialogue. The people are strong only when we march together as one. Our country is strong because we march as one voice. We make change happen because we march as one. We make a difference because we march as a unified front. Get off your butts. Let’s take our demands and concerns directly to the heart of our problem–the lies and corruption in Washington DC. Remove them all, Democrats and Republicans alike. We must represent and govern ourselves. LET’S ALL MARCH ON WASHINGTON DC. Sarah, are you with us!!? We sure could use a hand!

  • nationscome

    Stop being apathetic. Get off your butts. As a group of concerned working class Americans, we have the power and the right to remove corruption and reestablish our government to the way it’s supposed to work for the benefit of the working class and our families.

    Sarah Palin is outspoken, truthful and qualified to organize and lead a march on Washington DC to the very steps of the White House and the Capitol. All in favor of the march on Washington DC weigh in on this very important issue. It’s clear: Big business and puppet politicians of both parties no longer represent us. We must represent and govern ourselves. They all must go now!! History repeats itself! Let’s all MARCH ON WASHINGTON DC. I say THEPEOPLE4PALIN is the way to go. Write to Sarah…….

  • GatorNavy

    Not one thin dime, huh? How about 62 trillion dimes.

    Barry, why don’t you take your transformation and shove it up your fundamental?

    • Freempg

      Reggie Love has hung an Occupied sign there.

  • Christopher H Fromme

    There is another way it is called the 10th amendment and nullification. There is an effort under way in GA right now, The first 2 steps are no Exchange & no bait & switch of more medicaid, States with no Obamascare would be places people& businesses would want to live. http://tenthamendmentcenter.com/legislation/federal-health-care-nullification-act/

  • http://www.tavernkeepers.com/ John Daniels

    what has the world come to when I look at $6.2 trillion and think that the actual bill will probably be quite a bit higher…

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