Equality Trumps Economy

Remember when the Administration's healthcare objective was "to deal with the deficit end of this -- bending the cost curve"? Remember when President Obama called "the rising cost of health care" "the single most pressing fiscal challenge we face by far"? It was in all the papers, as was its later banishment from the Obamacare law.

late last month, Congressional Budget Office Director Doug Elmendorf finally told the truth (at 2):

Rising health costs will put tremendous pressure on the federal budget during the next few decades and beyond. In CBO’s judgment, the health legislation enacted earlier this year does not substantially diminish that pressure.

source: CBO Presentation at 6

Elmendorf explains (at 7):

The legislation will increase [the federal budgetary commitment to health care] by nearly $400 B during the 2010-2019 period but reduce it in the following decade.

The legislation will reduce budget deficits by about $140 billion during the 2010-2019 period and by an amount in a broad range around one-half percent of GDP during the following decade.

In plain language, robbing Peter to pay Paul, or as Keith Hennessey says:

By redirecting non-health dollars to health. The increased Medicare payroll taxes on "the rich" are the best example. These laws devote more federal resources to health care. We were supposed to move the other way and devote less.

In sum, under the President's own benchmark, Obamacare is a flop. The Corner's Veronique de Rugy asks, "Why didn’t the director of CBO say that before the bill was passed?"

Now you know. As Avik Roy concludes:

At this point, there are only two camps of honest people: those who believe Obamacare will blow up the budget, and that this is a problem; and those who believe that Obamacare will blow up the budget, and that this is not a problem (because wealth redistribution is more important, and because the wealthy can be taxed more if needed).

Which side are you on?