NYC Letter: Obamanomics 107

Day 178 of CHOPE

Obamanomics, high-rolling creates prosperity.

And folks look, AARP knows and the people working here today know, the president knows, and I know, that the status quo is simply not acceptable. It’s totally unacceptable. And it’s completely unsustainable. Even if we wanted to keep it the way we have it. It can’t do it financially.

We’re going to go bankrupt as a nation.

Now, people when I say that look at me and say, ‘What are you talking about, Joe? You're telling me we have to go spend money to keep from going bankrupt?"

The answer is yes, I’m telling you.

Joe "I'm No Economist" Biden,
arguing how owing trillions will prevent
a bankruptcy owing billions
AARP TOWN HALL
ALEXANDRIA, Virginia July 16, 2009 (CNS)

[Pause.] No, we don't get it.

MR. BIDEN EXPLAINS OBAMANOMICS
Spend Till You Prosper

The Congressional Budget Office (CBO) doesn't get it either.

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. ... Measured relative to GDP, almost all of the projected growth in federal spending other than interest payments on the debt stems from the three largest entitlement programs—Medicare, Medicaid, and Social Security. ... In CBO’s estimates, the increase in spending for Medicare and Medicaid will account for 80 percent of spending increases for the three entitlement programs between now and 2035 and 90 percent of spending growth between now and 2080. Thus, reducing overall government spending relative to what would occur under current fiscal policy would require fundamental changes in the trajectory of federal health spending. Slowing the growth rate of outlays for Medicare and Medicaid is the central long-term challenge for fiscal policy.

Having been warned, Team Barry and Democrats rush to do the very opposite.

LAWMAKERS WARNED ABOUT HEALTH COSTS
CBO Chief Says Democrats' Proposals
Lack Necessary Controls On Spending

WASHINGTON July 17, 2009 (WaPo) - Congress's chief budget analyst delivered a devastating assessment yesterday of the health-care proposals drafted by congressional Democrats, fueling an insurrection among fiscal conservatives in the House and pushing negotiators in the Senate to redouble efforts to draw up a new plan that more effectively restrains federal spending.

Under questioning by members of the Senate Budget Committee, Douglas Elmendorf, director of the nonpartisan Congressional Budget Office, said bills crafted by House leaders and the Senate health committee do not propose "the sort of fundamental changes" necessary to rein in the skyrocketing cost of government health programs, particularly Medicare. On the contrary, Elmendorf said, the measures would pile on an expensive new program to cover the uninsured. ... His remarks suggested that rather than averting a looming fiscal crisis, the measures could make the nation's bleak budget outlook even worse.

Elmendorf's blunt language startled lawmakers racing to meet Obama's deadline for approving a bill by the August break.

CHOPE.

Spend. Spend. Spend.