July 17. 2009

President Barack Obama's healthcare bills have come under intensity scrutiny over the last two days, with the Congressional Budget Director testifying in Congress that it will, "Send spending on healthcare soaring" and is "unsustainable."

Straightening out healthcare for 305,000,000 people is no small task. It is going to be difficult and costly, as America does not have a socialized medical system.

However, as I stated previously, a tax increase on the rich would alleviate a significant amount of the problem, regarding the nation's finances.

What choice do you have? How are you, Congress, going to pay for the initiatives before you. Time for some tough love.

The Long-Term Budget Outlook

Under current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run. Although great uncertainty surrounds long-term fiscal projections, rising costs for health care and the aging of the population will cause federal spending to increase rapidly under any plausible scenario for current law.

Unless revenues increase just as rapidly, the rise in spending will produce growing budget deficits. Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress economic growth in the United States. Over time, accumulating debt would cause substantial harm to the economy. The following chart shows our projection of federal debt relative to GDP under the two scenarios we modeled.

http://cboblog.cbo.gov