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Factoid #27 - 03.09.10
FACTOID #27
And if you take a look at the CBO (Congressional Budget Office) analysis – analysis from your chief actuary – I think it’s very revealing. This bill (the current health care bill) does not control costs. This bill does not reduce deficits. Instead, this bill adds a new health-care entitlement at a time when we have no idea how to pay for the entitlements we already have.
First a little bit about CBO. Their job is to score ($$) what is placed in front of them. And what has been placed in front of them is a bill that is full of gimmicks and smoke-and-mirrors. The bill has 10 years of tax increases, about half a trillion dollars, with 10 years of Medicare cuts, about half a trillion dollars, to pay for six years of spending. Now, what’s the true 10 year cost of this bill in 10 years? That’s $2.3 trillion dollars. The Senate Budget Committee chairman (Democrat Kent Conrad) said that this is a Ponzi scheme that would make Bernie Madoff proud.
Now, when you take a look at the Medicare cuts, what this bill essentially does (is treat) Medicare like a piggy bank. It raids a half a trillion dollars out of Medicare, not to shore up Medicare’s insolvency, but to spend on this new government program.
…According to the chief actuary of Medicare … as much as 20 percent of Medicare’s providers will either go out of business or will have to stop seeing Medicare beneficiaries. Millions of senior … who have chosen Medicare Advantage will lose the coverage that they now enjoy.
And so when you take a look at all of this; when you strip out the double-counting and what I would call these gimmicks, the full 10-year cost of the bill has a $460 billion deficit. The second 10-year cost of this bill has a $1.4 trillion deficit.
We don’t think the government should be in control of all this. We want people to be in control. And that, at the end of the day, is the big difference. We all talk to our constituents. And I’ve got to tell you Mr. President, the American people are engaged. And if you think they want a government takeover of health care, I would respectfully submit you’re not listening to them
Source: Wisconsin Representative Paul Ryan, speaking at Pres. Obama’s health care summit, Feb. 25, 2010.
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Factoid #26 - 02.22.10
FACTOID #26
From January 2000 to January 2010 – first under Pres. Bush after Sept 11 (mostly Homeland Security), then under Pres. Obama – the number of non-postal employees in the federal government grew 15 percent to 2.18 million. The increase would mean less if the private sector had grown as well. But over the same period, private sector employment decreased by 3 percent.
Jobs with Uncle Sam aren’t just more numerous than they used to be, they’re better. Wages and benefits for federal civilian workers were more than double the average total compensation in the private sector: $119,982 versus $59,909. In the treacherous period between December 2007 and mid-2009, the number of federal employees earning more than $100,000 doubled. Much of this was due to locked-in raises for workers who were rising through the ranks.
Then there’s the allure of the stability of a federal job. About one in five jobs at the federal level ends in firing or resignation. By contrast that rate is one in two in the private sector.
The same pattern of increase in government jobs for the just-closed decade shows up at the state and local level. Federal data show that the number of total government employees in the U.S. rose to 22.5 million from 20.6 million.
The new relative appeal of a government job sends a message that private-sector work, especially self-employment or a job at a start-up, may not be worthwhile.
Right now there are young people deciding whether they will be employers or employees. And they’re considering the whole jobscape.
Source: 2/17/10, Bloomberg.com by Amity Shlaes a senior fellow in economic history at the Council on Foreign Relations.
Factoid #25 - 02.15.10
FACTOID #25
There has been no global warming for 15 years, a key scientist admitted yesterday in a major U-turn. Professor Phil Jones, who is at the centre of the “Climategate” affair, conceded that there has been no “statistically significant” rise in temperatures since 1995.
The admission comes as new research casts serious doubt on temperature records collected around the world and used to support the global warming theory. Researchers said yesterday that warming recorded by weather stations was often caused by local factors rather than global change.
Last month the UN’s International Panel on Climate Change (IPCC) was forced to admit its key claim that Himalayan glaciers would melt by 2035 was “speculation” lifted from a 1999 magazine article.
Yesterday it emerged that Prof. Jones, whose raw data is crucial to the theory of climate change, had admitted he has trouble “keeping track” of the information.
Prof. Jones also conceded for the first time that the world may have been warmer in medieval times than now. Skeptics have long argued the world was warmer between 800 and 1300AD.
Source: Express.co.uk, the web site of the UK Daily Express newspaper, 2/15/10.
Factoid #24 - WSJ - 02.09.10
FACTOID #24
For every dollar in debt that Americans have paid off since they started cleansing their balance sheets in mid-2008, the U. S. government has borrowed more than $7. All the hard work by consumers to replenish their piggy banks may be for naught if big government budget deficits play havoc with the economy.
Last week’s federal budget didn’t provide much solace. The Obama administration projected that the federal debt could double over the next decade, prompting Moody’s Investors Service to warn that the pristine AAA credit rating of the U.S. “could come under downward pressure.”
Investors need to account for the burgeoning federal budget deficit as they save for retirement, college tuition or homes. Uncle Sam’s borrowing binge could set off a surge in inflation and push down the dollar, both of which would erode the value of savings. It could also push interest rates higher, hammering the value of more than $1 trillion in Treasury bonds owned by households directly or through mutual funds. Income taxes, already set to rise, might have to climb further to help close the government’s budget gap.
Factoid #23 - WSJ - 01.12.10
FACTOID #23
Among the astonishing things about the ObamaCare debate – or lack thereof – is that Washington is inundated with warnings about the destructiveness of this plan, and it doesn’t matter. The agency that runs Medicare rung the latest alarm bell on Friday (1/8/10), and good luck finding any media mention.
Richard Foster, the chief actuary for the Centers for Medicare and Medicaid Services, reports that under his analysis national health spending will rise under the bills by $222 billion over the next 10 years. Even that estimate exists only on paper, as Mr. Foster has the honesty to admit. Because “most of the coverage provisions would be in effect for only six of the 10 years of the budget period, the costs estimates do not represent a full 10-year cost for the proposed legislation,” he writes. The report is punctuated by phrases like “unrealistic” and “doubtful.”He says many providers will be forced to stop accepting (Medicare and Medicaid) patients who are insured by the government, as apposed to those who have private coverage “with relatively attractive payment rates.”
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- The Democrats' "Affordable Health Care for America Act" - Oct 29, 2009
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