June 2
ObamaCare one of many drivers in US ‘exploding debt’
Monday, July 25, 2011 at 8:28AM As the United States matured, borrowing became so complex it became a science unto itself. President Barack Obama wasted little time after taking office. The debt limit had to be raised again when Obama’s American Recovery and Reinvestment Act of 2009 was passed.
Once the Patient Protection and Affordable Care Act was back-doored by Democrats in the US Senate, the writing was on the wall.
The Libertarian think tank Cato pointed out the Congressional Budget Office’s analysis of federal spending showed healthcare as a main driver of costs. Cato said, “[R]apidly increasing expenditures on Medicare, Medicaid, and insurance subsidies under Obamacare are the most important factors behind the exploding debt. Serious attempts to control the debt must reduce these programs' growth rates.”
Cato also pointed out a number of other programs that should be slashed because they bring negligible benefits to the economy. Those programs include:
“federal spending on agricultural subsidies; Amtrak, high-speed rail to nowhere, and Big Dig-style boondoggles; arts, humanities, and public broadcasting; the Department of Education; the Small Business Administration; NASA; drug prohibition; foreign aid; and more.”
A Congressional Research Service report published at the Federation of American Scientists also noted something not talked about by Democrats who still point the finger at former President George W. Bush, an effort perhaps to counter Obama administration missteps as well as those of Democrats who controlled both branches of Congress from 2007 until 2010.
CRS found, “Smaller deficits in FY2006 and FY2007 led to smaller increases in publicly held debt. The total FY2007 deficit fell to 1.2% of GDP according to CBO.”
Once the financial meltdown occurred, that changed. It was necessary to borrow to protect the economy. The meltdown was years in the making. Many in Congress, especially those allegedly overseeing Fannie Mae and Freddie Mac as well as the financial sectors, knew the bubble would burst. That bubble burst at a very opportune time for Democrats whose social justice policies in lending ironically helped create the bubble to begin with. By the time Bush was saddled with finding a solution, Democrats forgot all about their own role in the meltdown.
Cutting spending is a necessary part of whatever compromise is reached between fiscal conservatives and socialist progressives. The problem isn’t the debt ceiling. The problem is spending that requires borrowing ever-larger amounts of money.
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The Debt Limit: History and Recent Increases (Congressional Research Service report at Federation of American Scientists)
(Commentary by Kay B. Day/July 25, 2011)
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Reader Comments (3)
It is fine to disagree but lies serve no purpose.
Re-read the column, please. I cited Cato's research related to the *debt.*
Those "tax revenues" you cite are certainly part of the mix, and ObamaCare (PPACA) strains an already strained revenue pool.
ObamaCare is part of the problem with projected debt. I suppose I should've mentioned many Democrats don't realize that because their Congress didn't pass a budget for more than 800 days.
Best, KBD
Link:
www.theusreport.com/the-us-report/2011/7/27/obamacare-more-than-700-million-already-committed-to-contrac.html
While it is true that all provisions of ObamaCare will not be implemented until 2014, it is also true that government always requires money for startup.
Because the reader above accused me of 'lies,' I thought it prudent to place a link to the column disproving the reader's claims.
PPACA is already costing the US taxpayer money.--The Editors