Monday, March 29, 2010

The Irrelevance of ObamaCare

Much has been said about the recent passage of the so-called ObamaCare. What hasn’t been said is that it is pretty much irrelevant in term of fiscal possibility. Sure, through budget gymnastics the powers-that-be were able to convey that “free healthcare” is not only affordable but also free. No, not free in the sense that partakers will not have to fork out anything when visiting a doctor, but free in the sense that it won’t add to the government deficit. Right! It will be anything but that. Since politicians can rarely do simple arithmetic, I’ll do it on their behalf. Consider the following:

1. Unfunded liabilities of Social Security, Medicaid, and Medicare are approximately $100 trillion (yes, trillions; it is not a typo). This was estimated by the Federal Reserve Bank of Dallas. [See Here]. And as my previous post reported, Social Security will pay out more this year than it will receive.

2. The federal government debt is currently $12.6 trillion. [See Here]

3. The federal government will add about an extra $9 trillion over the next decade. [See Here]

On a second thought, you do the math.

Against this backdrop, ObamaCare and all other government promises are a pipe dream. I dare say at least 80% of the population (using Pareto's Law) are in the dark about the economic standing of our nation. Only when it is too late they will understand.

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