PROMISES, PROMISES
Thursday, July 8th, 2010Making promises is easy for Presidents. Delivering on them is another matter. Presidents Kennedy and Johnson, for example, pledged to end poverty by declaring war on it. The selling point of the “War on Poverty” was that massive up-front investments would end dependency and poverty. Kennedy said, “We must find ways of returning far more dependent people to independence.” Johnson wanted to “break the cycle of poverty” and “make taxpayers out of tax-eaters.” A New York Times editorial of the day said, “The initial cost will actually be greater than the mere continuation of handouts. The dividends will come in the restoration of individual dignity and in the long-run reduction of the need for government help.” Since the passage of Johnson’s Great Society programs, we’ve spent $5.1 trillion in the war on poverty. That’s right, five trillion dollars. Many of the programs which were supposed to be temporary are now permanent and ever-growing fixtures in the Federal budget. And poverty rates have not changed at all.
Now, on to the promises that President Obama and Congressional Democrats made to get sweeping health care reform passed. First, Obama said we could keep our health insurance: “If you like your plan, you can keep it.” In a recent Friday night document dump, an internal administration paper revealed that 87 million Americans will lose their current plans. The number could be as high as 117 million. The document is a collaboration of Health and Human Services (HHS,) Internal Revenue and the Department of Labor. How is this possible? HHS has the authority to revoke the “grandfathered” status of existing health plans, if the employer makes a change in the plan. According to regulations already in place, 51% of existing employer-based plans will lose “grandfathered” status by 2013.
Obama and the Democrats also promised that health care “reform” would reduce the deficit. To sell the program to us, they had to get the total cost under one trillion dollars. The Congressional Budget Office (CBO) is the agency that gives the final word on program costs, although their estimate is only as accurate as the numbers given to them. The original CBO estimate was a $940 billion cost from 2010 to 2019, reducing the budget deficit by $138 billion. Sounds good, right? But it’s not true. Here’s how they made it look like less than a trillion: collect taxes up front starting in 2011, build up a surplus of these taxes, and don’t begin paying benefits until 2014. Presto, you have “deficit reduction.” But wait – there’s more. They counted Medicare cuts twice, omitted payment rate increases (known as the “doc fix,”) and indexed benefits to the general inflation rates rather than medical inflation. The real estimate of what the health care bill will cost: as much as $2.5 trillion.
Speaker of the House Nancy Pelosi said, “We have to pass the bill to find out what is in it.” We are finding out every day, and it isn’t what was promised. As many as 33 states are mounting legal or legislative challenges to the bill. With polls showing that many Americans want the bill repealed, Rep. Louise Slaughter, Democrat of New York, said “It’s just like trying to explain the Encyclopedia Britannica…” translation: the public is too dumb to understand the bill. We do understand it, and we understand that we have been lied to.
Michael A. Morrongiello