Roman Around

combating liberalism and other childish notions

Posts Tagged ‘Congressional Budget Office’

THE TEN YEAR DUPE, PART TWO

Posted by Andrew Roman on November 20, 2009

Harry Reid, fudging the damn numbers

I’m not sure how many people would sign on to a program that required them to work full-time for a period of four years before being paid; or one that would require four years of insurance payments on a car before being handed the keys; or one – as Senator Mitch McConnell puts it – that required four years of mortgage payments before one can move into a house, but I’m going to venture out on a limb and say not too many.

Just as the House version of the health care bill did two weeks ago, Harry Reid’s incarnation – over two-thousand pages strong – employs that old accounting chestnut: The Ten Year Dupe.

It’s pie-in-the-sky liberal voodoo at its cooked-books best.

Recall that earlier this week, Reid assured Americans that the Senate’s version of government-run health care would be a money-saver. Like the Pelosi bill, it would be cost-effective and still be able to insure billions and billions of health-care starved people without costing Americans an extra cent. In fact, there’d actually be some money leftover to pour into other meaningful things, like doorknobs at inner-city housing projects, the study of orgasms among college girls, and the continued examination of radioactive rabbit feces.

Over ten years, according to Reid, the whole kit-n-kaboodle would cost “only” $849 billion. (In today’s trillion-happy world, that’s chump change).

But we’ve all seen this movie before … and there are too many who still don’t get it.

Although tax increases would be implemented upon the bill’s passage into law, actual spending won’t begin until the fifth year of the bill’s application, 2014; and even then, it will be relatively miniscule. For instance, only $9 billion is slated to be spent that year. However, in 2016, spending reaches $147 billion. By 2019 (the last year of Reid’s ten year projection), it’ll hit $196 billion.

Thus, actual spending of any significance would only take place during the last six years of Reid’s health care debacle.

But, if one were to look at the actual numbers over a fully implemented ten year period, which would start in 2014, the cost is more than twice the $849 billion espoused by Reid – in the neighborhood of $2 trillion, according to the Congressional Budget Office (CBO).

The Ten Year Dupe.

As many as seventeen new taxes will be enacted to help fund everything. As much as $800 billion, according to the CBO, will be sucked from Medicare during the first decade of full implementation and put somewhere else. Plus, hefty penalties for those individuals, families and businesses who fail to comply with guidelines will be imposed.

Let freedom ring.

Seeing as there will be four years of revenue collection before spending really begins – which means four more years of our ongoing American health care holocaust – where is all of that money going to go until it is ready to be spent? Where do four years of taxes and fines get stashed until the government begins saving American lives? Will there be a health care reform fund established? Will there be a secret shoe box hidden at an undisclosed location? Will convicted Congressman William Jefferson of Louisiana allow the government to borrow his freezer?

Or the do words Social Security Fund mean anything to you?

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Posted in Big Government, Democrats, Economy, health care, Liberalism, politics | Tagged: , , , , , , | 2 Comments »

TEN YEARS OF OBAMA/PELOSI CARE – CRUNCHING THE REAL NUMBERS

Posted by Andrew Roman on November 6, 2009

Nancy Pelosi

House Speaker, Nancy Pelosi

From the “Who Didn’t See This One Coming?” file …

Like a big-government liberal salivating at the thought of siphoning more of my paycheck, or an Obamacrat pecking incessantly at my liberties, it’s been gnawing at the sensibilities of clear-thinking Americans for the better part of ten months. It is imperative, the American people have been told time and time again, that health care reform happen as soon as humanly possible. It’s something that needed to happen yesterday, so the story goes; and if not for the racists and money-hoarders on the other side who use talk radio as the vehicle to spread their vitriol, everyone would be already be covered with top-flight, inexpensive, world-class health-care.

According to Washington’s Holey Trinity – Barack Obama, Nancy Pelosi, and Harry Reid  – the American people cannot afford another nanosecond of having to deal with the current capitalist, greed-uber-alles health care delivery debacle that leaves millions and millions to die while fat cat insurance companies roll in the dough. Recall that the health care “crisis” was recently called a “Holocaust” by Florida Congressman Alan Grayson. Recall that those who spoke out against the government takeover of health care at town-hall meetings all across America were said to be swastika-carriers by the Speaker of the House.

(You gotta love that German National Socialist imagery).

As critical as the passing of a health care reform bill is supposed to be to the welfare of the American people, none of it (oddly enough) is to actually be implemented until either 2013 or 2014, depending on the version of bill. (So much for urgency). Three years, it seems to me, is a mighty long time, especially when a “crisis” as far-reaching as this is afoot, but I’m obviously missing something. Still, considering the “seriousness” of the situation, potentially, we’re talking about alot of dead bodies littering the streets.

Proponents of Democrat health care reform have been feeding the American people the notion that all plans to completely overhaul the system are not only going to save trillions and trillions of lives, but it will be cost-effective. In fact, according to the Holey Trinity, it won’t cost Americans an extra nickel.

Senator Harry Reid

Senator Harry Reid

Of course, being one of the unsophisticated lock-steppers awaiting his daily marching orders from my talk radio overlords, that never made an iota’s worth of sense to me – nor did it to tens of millions of Americans who spent the better part of the summer and autumn speaking out in opposition to such a blatant erosion of liberty. It ate away at common sense. Without increasing the amount of doctors in the country while (supposedly) adding thirty million Americans to the insurance rolls, the idea that costs would not increase was about as coherent as Joe Biden sober.

Making things all the more deceptive for clarity-loving, clear thinking Americans was the fact that, according to all versions of the bill, revenues for the overhaul would begin to be collected almost immediately.

In short, taxpayers would begin footing the bill now, while the health care “Holocaust” would be allowed to fester for three years under the Pelosi version of the bill (four years under Reid’s version) until the actual rescuing of suffering Americans by the federal government could begin.

Naturally, members of the exalted Trinity (and their mouthpieces) would find every opportunity to gravitate toward hot microphones demanding that those of us in the skeptic’s camp do the math and see that over the next ten years, everything, indeed, checks out cost-wise.

“We’re telling you, it all works out,” they would say.

“Here’s a calculator, do the math. It’ll cost no one a penny extra,” they would contend.

“Look at how things shape up over an entire decade! Your concerns are unfounded!” they would claim.

But here’s the reality of the situation: The only way to conduct an honest analysis of the costs of the Holey Trinity’s attempt to nationalize the American health care system is to run the numbers for a ten year period that includes both spending and revenue collection.

And when the real numbers are crunched … it is not pretty.

Benjamin E. Sasse & Jefferey H. Anderson, in comparing the House version of the bill with the Senate version of the bill, write in the New York Post:

Each bill is routinely “scored” for its 10-year costs from 2010-19. Yet this includes several years when the spending wouldn’t yet have kicked in. According to the Congressional Budget Office, fully 99.9 percent of the Pelosi bill’s costs would hit from 2013 onward. Similarly, 98.3 percent of Reid’s spending would come after 2014.

If you start the tally when the bills’ spending would actually start, then the bills’ real 10-year costs become clear — and are remarkably similar.

The CBO reports that, in their true first 10 years, the House bill would cost $1.8 trillion, and the Senate bill would cost $1.7 trillion. Pelosi would raise Americans’ taxes by $1.1 trillion over that period, while Reid would hike them by $1 trillion.

And the House bill would siphon about $800 billion from Medicare to spend it elsewhere, while the Senate bill would suck out about $900 billion.

And if we discount the bills’ claims to divert hundreds of billions of dollars from Medicare (which is already on the edge of insolvency), the CBO says the House bill would raise our national debt by about $650 billion in its real first decade, while the Senate bill would up it by $740 billion.

So, the bills would either sock older Americans by taking huge sums of money from Medicare — or hit future generations with huge tax hikes to cover the shortfall.

Whether it’s our grandparents or our grandchildren, someone is going to pay.

If there aren’t alarms blaring in your head after ingesting those nuggets, it may be time to have a work crew brought in to clear away any cranial cavity blockages.

Numbers have a funny way about them.

Is there anyone who truly believes that the elderly are not going to have their health care substantially rationed under government-run health care? Or that future generation upon gfuture eneration will not be paying for this mess long after the Holey Trinity have moved on to the next world?

Count on both.

Seniors will see their health care – to the tune of $900 billion – quite literally, given to someone else. In other words, benefits will be extracted from a segment of the electorate that is not particularly smitten with President Obama – seniors – and redistributed to that portion of the electorate that still is – the young and the poor.

The only thing as certain as the astronomical costs and sub-par medical care this bill will bring is the fact that not a single member of Congress will ever trade in his or her own health care plan for anything they bestow upon the masses.

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STIMULUS CRAP

Posted by Andrew Roman on October 29, 2009

stimulus package hatHow about that?

The economy grew by 3.5% during the third quarter. Needless to say, it was unexpected by “experts.”

Yahoo News went so far as to say that the recession was over.

Happy days must be here again.

I would advise, however, that before anyone starts wetting their inseams with glee, a little perspective is in order.

Think of a restless boy on a dose of Ritalin. As the drugged child settles down and begins his excursion into the cognitive abyss, the doctor walks by to see the “out of control” lad pacified at last. He’s quiet now – in that just-recently-lobotomized sort of way. He still needs tending to, but things are finally calm. The doctor also sees a frazzled parent slumped back in the chair, relieved to finally find a few moments peace. The “Leave It to Beaver” theme plays in the parent’s head.

As heart rates decrease and tensions abate, both doctor and parent arrive at the same conclusions: Ritalin, good. Peace, good. Rambunctious boy, bad.

And the long term effects of the dope-instead-of-parenting approach?

Who cares?

As long as it’s quiet.

This, my dear readers, in a nutshell, is a good place to start when trying to understand the Obama economy – drugged and artificial.

Here’s the bottom line … despite the orgasmic reports of an economic third quarter that has put to bed the worst recession in seventy-years (which only a few days ago, according to Joe Biden, was a full-fledged depression), the reality is, this is no recovery. This is not the beginning of a long term trend based on investment and genuine growth. Rather, it is the temporary result of an infusion of the drug known as government intervention. Take away the Cash-for-Clunkers program and the Homebuyer Tax Credit – fleeting “fixes” that spurred temporary consumer activity – and all that’s left is an absolute failure of a stimulus program that increases nothing except the tax burden for generations to come. In other words, when the Ritalin wears off, the child will be out of control again.

These moronic lefty contrivances are not genuine economic stimulators. Obama’s gargantuan deficits will not encourage private-sector investment. The President’s “there-isn’t-a-tax-I don’t-love” approach will not promote economic growth. His “to-hell-with-the-free-market” modus operandi will never stimulate a damn thing.

And exactly what proof is there that Obama’s $787 billion stimulus package – which, incidentally, has only been 20% implemented, and most of that in non-stimulating capacities – had anything to do with the so-called recovery? Because Joe Biden said so? (Remember, this was a depression not too long ago) Because the state-level recipients, who wouldn’t dare levy a negative word at the money-givers, said so?

This morning, on her nationally syndicated radio program, Laura Ingraham spoke with former Congressional Budget Office (CBO) Director, Douglas Holtz-Eakin:

Ingraham: (The Stimulus) has been, without a doubt, exposed as a farce … We have lost jobs. They predicted three million. We now see an exodus, when you add it all up, of six-and-a-half million jobs from the United States.

Holtz-Eakin: And remember, when it became obvious that this was not going to work, they invented a new term – “jobs saved” – something that has, literally, no foundation in fact, and (can) never be verified, in order to sell (the success of the Stimulus).

“Jobs saved” is just as easy to verify as “souls saved.” I mean, there is just no way to do this.

And then there’s this …

According to the Associated Press, the Obama administration’s “economic recovery plan overstates by thousands the number of jobs created or saved through the stimulus program, a mistake that White House officials promise will be corrected in future reports.”

The government’s first accounting of jobs tied to the $787 billion stimulus program claimed more than 30,000 positions paid for with recovery money. But that figure is overstated by least 5,000 jobs, according to an Associated Press review of a sample of stimulus contracts.

The AP review found some counts were more than 10 times as high as the actual number of jobs; some jobs credited to the stimulus program were counted two and sometimes more than four times; and other jobs were credited to stimulus spending when none was produced.

It is interesting to note that the CBO let out its economic soothsayers back in February, predicting that by the end of this year, we’d see some kind of economic recovery even if Obama and the Cats did absolutely nothing. They also pointed out that all the debt that will result from Obama’s astronomical spending spree could trigger a re-recession – or a double-dip recession – when the bills come due.

It’s pretty easy to grasp.

Government spending does not create economic growth. It would seem to be self-evident seeing as the government gets its money from the private sector through taxation. This is so basic that “one-plus-one-is-two” is labyrinthine in comparison.

Perhaps someone ought to slip some Ritalin into the Congressional water cooler.

Incidentally, isn’t it a delicous coincidence that the “worst recession since the Great Depression” would come to an end on the 80th anniversary of the event that is considered to have triggered the Great Dpression itself – the Stock Market crash of 1929?
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CBO SAYS OBAMA IS A RECORD-SETTER

Posted by Andrew Roman on August 10, 2009

As promised

As promised

From the “Who Would Have Guessed?” file …

It isn’t neuro-surgery – although one may be able to make a compelling case that Democrats are in desperate need of some group synapse therapy. (That’s a separate issue).

It’s really quite basic.

Government bailouts for car companies and banks actually cost money. Liberal nation-saving initiatives such as the stimulus bill and Tarp  – not to mention the looming health care overhaul – will take a tremendous financial toll. The President has decided that the current generation of Americans is incapable of dealing with tough times and can only survive by making future generations carry the load. President Obama is not only transforming the country (as he promised), he is setting records.

Ladies and gentlemen, glance up at the Big Board, if you will; the deficit, as of the end of last month, has hit $1.3 trillion.

And there’s more where that came from.

Walter Alarkon from The Hill writes:

Bailouts for financial firms and billions in tax revenue lost because of the recession drove the deficit to a record $1.3 trillion in July, according to the independent Congressional Budget Office (CBO).

Tax receipts that have fallen due to the poor economy and increased spending to save car companies, banks and mortgage firms were major contributors to the federal deficit, according to CBO, which provides official budget numbers for Congress. The federal deficit grew by another $181 billion in July.

Falling tax receipts and increased spending on bailouts for auto companies and the financial sector and for the economic stimulus package added to the deficit, according to CBO, which provides official budget numbers for Congress.

Spending through July of 2009 has increased by $530 billion, which is 21 percent over the same period in 2008. The bailout money for Freddie Mac and Fannie Mae accounted for almost half of the spending increase. Unemployment benefits have more than doubled, Medicaid spending has grown by a quarter and Medicare spending has increased by 11 percent.

Keep in mind that Nancy Pelosi – America’s official swastika spotter, and third in line for the Presidency of the United States – recently assured Colorado town hall attendees that the proposed health care bill will not increase the deficit.

How about that?

The cost of destroying the greatest health care delivery system on earth and transforming it into a government-run entreprise of rationed mediocrity (at minimum) is projected to total a trillion dollars over ten years, but it will not have any effect whatsoever on the exploding deficit.

That’s what Nancy says.

Sen. Judd Gregg (N.H.), the top Republican on the Budget Committee, said that Democrats in Congress aren’t doing anything to address the record deficit and are instead pushing ahead with “wildly expensive” healthcare legislation.

“To allow the deficit to hit these previously unthinkable levels – while still planning to implement massive new spending programs – shows an incredible lack of fiscal responsibility, especially toward the future generations who will be saddled with the consequences of today’s actions,” Gregg said.

Unthinkable levels by unthinking politicians.

Who would have guessed?

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