We’ve heard it for generations. Let government get more involved – and private sector prices will fall. We’ve heard it in defense of new programs – and (ever) more regulations.
We have centuries of evidence to the contrary.
Government promises already made are unfathomably short of coin.
In part because the government is either woefully unskilled at guesstimating its costs – or it simply lies to get their new power grabs imposed.
A rule of thumb in government is that new programs almost always cost more than politicians predict. So it should come as no surprise that the new Medicare prescription-drug benefit will cost taxpayers more than originally advertised.
When the plan to help seniors cope with skyrocketing drug costs passed Congress in 2003, the advertised price was $400 billion over 10 years. Two months later, the Bush administration “revised” the estimate to $534 billion. Now, Medicare officials project the cost to be $724 billion from 2006 to 2015, its first full decade.
As eye-popping as those numbers are, the real cost will likely be higher. Long-range projections are notoriously inaccurate. When Medicare, the government’s health care system for the elderly and disabled, was first enacted in 1965, lawmakers predicted it would cost $9 billion by 1990. In fact, it cost $67 billion that year.
Get that? Government in 1965 was off on 1990 Medicare – by a factor of seven-plus.
So this unbelievable wrong-ness shouldn’t shock us.
Especially when promised by this President.
Neither the increased costs or jacked taxes should be news to us.
If the government increases its regulatory reach – things get more expensive. It’s inherent. Federal government regulations alone cost the economy more than $2 trillion per year.
To assert that THIS time a dramatic regulatory increase will run counter to every iota of evidence ever and miraculously lower costs is either naive or disingenuous on stilts.
Obama Contemplates Internet Tax – August 28, 2012
The Feds under their newly grabbed Internet powers are going to have the ability to impose on the Web – amongst other phone tariffs – the Universal Service Fund (USF) tax.
Which is currently 17.4% – and goes up automatically every calendar quarter. And goes up each and every time three unelected Federal Communications Commission (FCC) bureaucrats decide they want more of our coin. Which they just did – with a 17.1% rate increase in December.
Likely so the new additionally-inflated tax – would be in place for the soon-to-be-minted Internet power grab.
Higher costs and new taxes – again, not a surprise to anyone paying any attention to anything government does.