This morning Moe writes about the free-fall in tax receipts that the Democrats have brought us.
We’ve seen any number of diaries over the last week talking about the heat Congresscritters are taking for trying to nationalize health care. Actually, the US Congress nationalized health care in 1968 under a previous Socialist, Lyndon Johnson. President Johnson was highly successful in laying the groundwork for our current administration in many areas, but perhaps none more than health care.
In 1968 Congress passed, and Johnson signed into law, Medicare.
I could look at lots of things related to Medicare, but I want to focus on only one. Projected cost. I want to look at that because of all the elements that Congresscritters are forced to admit that they are clueless about with the JoinTeddyKennedyHealthPlan™, cost – both current and project is the fuzziest.
From and IBD Editorial by Tim Penney and Rudy Boschwitz…
Beware of government estimates about the future cost of ObamaCare. When Medicare was being considered in the mid-1960s, the government projected that the outlays for the program 25 years down the road would be $10 billion. Instead, in 1990, 25 years later, the outlays were $107 billion. Government estimates were off by a factor of more than 10!
Medicaid, the other large medical program currently in effect, outdid Medicare. Medicaid outlays in 1968 were $1.8 billion. In 2007 they had risen to $190.6 billion, an increase in dollar terms of 105.9 times.
And that is only the Federal outlay number. There is a roughly equal Medicaid amount spent by the states due to federal mandates.
Without those mandates we would not be reading about the large deficits that most states endure.
I know most of you aren’t surprised, I know I wasn’t, but the numbers are stark. We need to be asking our Congresscritters where the money is going to come from and, given the performance of Medicare and Medicaid, just how do they plan on containing the cost of those programs on an outgoing basis.
I can’t wait to hear the answers.