Mr. Obama has already created a river of red ink. His health-care plans will only force that river over its banks. We are at the cusp of a crucial political debate, and Mr. Obama's words on fiscal matters are untrustworthy. His promised savings are a mirage. His proposals to reshape the economy are alarming. And his unwillingness to be forthright with his numbers reveals that he knows his plans would terrify many Americans.
He also said the stimulus would "save or create up to four million jobs." Vice President Joe Biden said the massive federal spending plan would "drop-kick" the economy out of the recession.And on his claims of great benefit if we socialize medicine:But the unemployment rate today is 9.5% -- nearly 20% higher than the Obama White House said it would be with the stimulus in place. Keith Hennessey, who worked at the Bush White House on economic policy, has noted that unemployment is now higher than the administration said it would be if nothing was done to revive the economy. There are 2.6 million fewer Americans working than Mr. Obama promised.
For example, the administration strong-armed health-care providers into promising $2 trillion in health savings. It got pharmaceutical companies to promise to lower drug prices for seniors by $80 billion over 10 years. The administration also trotted out hospital executives to say that they would voluntarily save the government $150 billion over 10 years.
None of this comes near to being true. On the promised $2 trillion, everyone admits that the number isn't built on anything specific -- it's an aspirational goal. On drug prices, a White House spokesman admitted that "These savings have not been identified at the moment." It is speculative that these cuts will actually be made, when they would begin, or whether they would reduce government health-care spending.
None of this will stop the administration from arguing that its "savings" will pay for Mr. Obama's $1.5 trillion health-care plans.
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