Tags: bill | spetrino | economy | cbo | budget | health | repeal

Whether to Believe CBO or Your Own Lying Eyes

By    |   Friday, 07 Jan 2011 08:20 AM

Each day, I try to sift through all the nonsense and outward lies that are peddled by a media who tries to fool you.

Now, folks, remember — I am not a typical journalist. I make my living and achieved financial independence by sifting through the lies and deceit of Wall Street.

But help me evaluate this latest statement from the CBO.

An effort by Republicans in the U.S. House of Representatives to repeal the healthcare law enacted last year would add to already huge federal budget deficits, the Congressional Budget Office warned Thursday.

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In a preliminary estimate of legislation the House is set to begin debating Friday, the CBO said repealing the law that President Barack Obama and his fellow Democrats enacted would "increase federal budget deficits over the 2012-2019 period by a total of roughly $145 billion." 

Budget Office Director Douglas Elmendorf estimated repeal would increase the deficit by $230 billion from 2012 to 2021, the 10-year estimating period for budget projections. Moreover, Elmendorf said about 32 million more people would be uninsured in 2019 as a consequence.

Without explaining Obamacare in detail, I can just say this figure was done through 10 years of fees but only six years of benefits

Of course, they are using assumptions to guess.

Let’s first look at recent history to see how reliable CBO forecasts have been.

In 1999, the CBO issued its 10-year forecast for 2000-2009. It said it looked as though the nation was heading into 10 years of prosperity that would rescue us from little worries like the trillions in unfunded liabilities of Social Security and Medicare.

The CBO even expected a budget surplus in every year from 2000 to 2009.

And not just that, but the CBO said that the surpluses would grow at an annual rate of more than 13 percent and would accumulate to $2.5 trillion during the decade.

In 2009, in fact we didn’t have a surplus but had a record deficit of more than $1 trillion.

So, this is the question I have for the people who quote the CBO. If they didn’t know what was going to happen the last 10 years, what makes you think they know what will happen now?

Now, let me get this straight. We're going to give 32 million more people health insurance as a government entitlement but doing so earns the government more money?

So maybe if we added 65 million people, we would lower the deficits by 290 billion in 2012-2019?

How foolish do they think we are?

So do we believe the CBO or our own lying eyes?

Please e-mail us at financialcustomerservice@newsmax.com with your feedback.

About the Author: Bill Spetrino
Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of the Dividend Machine. Discover more by Clicking Here Now.

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BillSpetrino
Each day, I try to sift through all the nonsense and outward lies that are peddled by a media who tries to fool you. Now, folks, remember I am not a typical journalist. I make my living and achieved financial independence by sifting through the lies and deceit of Wall...
bill,spetrino,economy,cbo,budget,health,repeal
491
2011-20-07
Friday, 07 Jan 2011 08:20 AM
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