Last week, while the two major parties were fighting over the last morsels of capitalism left in the rush to full-throated socialism, the CBO released its annual long-term budget outlook, which demonstrates the effects of the socialist policies emanating from both parties. There is nothing but eye-popping debt, dependency, lower income, and permanently depressed economic growth. And nothing being promulgated by the two major parties addresses any of this; instead, their proposals exacerbate all the economic and fiscal problems.
Yes, I know the CBO often gets it wrong. But in which direction? It tends to underestimate spending and overestimate revenues. Thus, the destruction projected by the CBO is the floor, not the ceiling, of the calamity we are facing.
We have not experienced a year of 5 percent growth since Reagan.
You think $19.8 trillion in debt is bad? Although we are already near to World War II levels of debt relative to the size of the economy, we’ve seen nothing yet.
To see how the debt crisis is destroying the economy now, look at this summation from the CBO:
Large federal budget deficits over the long term would reduce investment, resulting in lower national income and higher interest rates than would be the case otherwise. If the government borrowed more, more of people’s savings would be used to buy Treasury securities, and thus private investment would be crowded out …
With less investment in capital goods — factories and computers,
for example — workers would be less productive. Because productivity growth is the main driver of growth in people’s compensation, decreased investment also would reduce average compensation per hour, offering people less incentive to work.
That neither President Trump nor either party ever factor in the crushing debt to their “economic growth plans” defies logic. Much as with immigration policy, our economic policies are following in the footsteps of Europe.
Health care is the 800-pound gorilla in the room. Federal spending on health care (not including state expenditures) is projected to be $16.5 trillion over the next 10 years, dwarfing the cost of Social Security and the military. By 2047, health care spending will be about 25 percent greater than the insolvent and crushing cost of Social Security. As such, health care in itself is the largest driver of the other great crisis, as noted: the mushrooming cost of the interest on the debt itself. Health care spending will be greater than all the revenue from payroll taxes and corporate income taxes combined and almost as large as individual income tax revenue.
To make matters worse, remember that the CBO is grossly underestimating the cost of Obamacare because of its flawed methodology in predicting the rise of premiums. Premiums in Alaska already cost as much as $50,000. There’s nothing stopping premiums from rising to $1 million, and the government would foot almost the entire bill for those earning under $80,000, while everyone else would have to pay the full price! No amount of budget scoring could ever capture what the budget and economy will look like when every state experiences what Alaska is confronted with today. We will have single-payer in short order.
Therefore, we cannot move away from full repeal of Obamacare. We cannot ignore our right to free market health care. If the federal and state governments would pursue our free market ideas (many of them promised by the GOP), health care would work like a regular market and prices on delivery and insurance would come down. That would keep more people in the private sector and away from government programs, further reducing costs and alleviating pressure on the budget. There is no other choice and no other way to grow the economy, raise wages, and stem the tide of debilitating debt.
Sadly, non-government-run health care is not an option on the menu between the two branches of one big political party.
Daniel Horowitz is a senior editor of Conservative Review. Follow him on Twitter @RMConservative.