March 18, 2010

TeamObama Must Believe We Are Both Gullible and Stupid

The Wall Street Journal today reports that:
"The Congressional Budget Office has determined the latest version of the health overhaul will cost $940 billion over a decade, according to a Democratic aide. House leaders plan to unveil the final package later today.

Rep. Steny Hoyer said the health-care package will also reduce the federal deficit by more than $100 billion over its first 10 years -- and more than $1 trillion in the second decade.

House Democrats have been working on a package of changes to the health bill passed by the Senate on Dec. 24."

Frankly I don't believe these projections. It's nonsensical that +/- 30 million people can be added to the health care/insurance system in an aging population without substantially increasing the deficit in the next 10 years. Many of the people who will be added will require subsidies. Most assuredly the $ trillion spent will add to the deficit.

This Congressman says that the U.S. will spend nearly a $ trillion and reduce the deficit by a $100 billion. Against what baseline? This is totally unrealistic since the Obama budget projection for the next decade shows cumulative deficits as shown in the chart above (also from the WSJ) of ~ $10 trillion.

Even if it's correct, $100 billion is only 1% of the projected cumulative deficit, a prediction far outside the limits of accuracy for a 10-year projection of ANYTHING!

Sadly, TeamObama must believe the American public is both stupid and gullible to believe these numbers.
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