Can We Really Afford Universal Health Care?

The predominate argument made by the President and congressional liberals for pushing their health care agenda is that it will save the government money in the long run by containing costs. In his usual histrionic fashion Mr. Obama argues his health care plan is vital to controlling future costs and deficits.

"If we do not control these costs, we will not be able to control our deficit," Obama said. "If we do not reform health care, your premiums and out-of-pocket costs will continue to skyrocket. If we don't act, 14,000 Americans will continue to lose their health insurance every single day. These are the consequences of inaction. These are the stakes of the debate we're having right now."

In yet another foolishly candid moment, Vice President Joe Bidden, in a tryst with the AARP told attendees at a town hall meeting that without the Democrat health care plan the nation will go bankrupt and that the only way to avoid that fate is for the government to spend more money.

The Democrats want to spend their way into a healthy economy, which throughout history has never worked. The only way to pay for it is to tax an already overtaxed people or borrow the money further increasing the deficit.

Can government spending really save the economy? It has never worked; every time it has been tried it was a dismal failure. It was tried during the great Depression and it failed, Henry Morgenthau, FDR’s Secretary of the Treasury, wrote in his diary: “We have tried spending money. We are spending more than we have ever spent before and it does not work…We have never made good on our promises…I say after eight years of administration we have just as much unemployment as when we started…and an enormous debt to boot.” The result of Jimmy Carter’s price fixing and tax and spend polices to combat the 1970’s recession was stagflation. Maybe the Democrats in Washington think it will work this time—what is the definition of insanity again: Repeating the same behavior expecting a different outcome? I digress.

According to Doug Elmendorf, the director of the Congressional Budget Office, the house plan shows no fundamental changes hat would reduce the costs of federal health care spending by any significant amount. Instead, the legislation significantly increases the costs the federal government will be responsible to pay.
The CBO estimates the cost will run $1 trillion and will only cover one third of the 48 million uninsured Americans. Furthermore the CBO reports 23 million Americans currently insured will loose their private health care plans.

An editorial in The Washington Times suggests it could be even more expensive costing upwards of $4.5 trillion. The article points out mistakes the CBO made in their calculations, grossly—though not intentionally—underestimating the costs. According to the article the CBO didn’t consider small businesses that employ 10 or less workers. Such businesses account for over 12 million employs and pays out 18.5 billion in health insurance per year. This adds up to $185 billion over ten years that the CBO didn’t take into account in their analysis.

The Washington Post article also quotes estimates made by the Lewin Group a health care policy consulting firm, that estimates that 119 million Americans will switch from their private health care plans to the government plan and if this happens the cost could easily swell to $4.5 trillion over the same 10 year period.

No matter how it all plays out the real burden to Americans will be astronomical; trillions of dollars will be added to the deficit over the next 10 years, millions will loose their private insurance plans, at least 16 million Americans will still be without coverage, and competition between insurance companies and consumer choice will be eliminated by government mandates.

Mr. Obama, who wishfully promises: "we will pass reform that lowers cost, promotes choice and provides coverage that every American can count on, and we will do it this year,” is promoting a fantasy world that in reality will lead to unsustainable deficits, hyper inflation, and a total government takeover of health care.