John Ransom

This is a time when the population of America should be throwing rose petals at the feet of the Great Leader, Miracle Worker, Economist, Ph.D and Professor of Constitutional history, Dr. Barack H. Obama, MD.

All of our problems should be solved now.

Two years ago we were told and sold that Obamacare, the keystone legislative effort of Obama’s first two years, would solve our problems when it comes to out-of-control government spending.

It’s a deficit reducer, Washington Post wonk Ezra Klein told us about the government takeout of healthcare under the banner of “reform.”

Just pass Obamacare and we’ll find out how good it is, said Nancy Pelosi, which proved in the end to be a kind of a epitaph for her Speakership of the House.

Imagine how upsetting it might be now, two years later, to discover that the White House thinks that government spending isn’t out control, but that, “to be clear,” as the president himself might say, we have a HUGE problem with healthcare spending. Of all things.

Um, Obamacare? Anyone? Helllloooo?

“I think every economist worth this -- whose insights into this area are worth the paper on which his or her Ph.D. is printed,” said White House Press Jester Jay Carney recently “would tell you that the principal driver when it comes to spending of our deficits and debt is health care spending. And that's just a fact.”

Oh, it’s facts they want?

OK, well here are a few more facts:

If we just keep pace with spending as it stands now, and don’t add any extra measures, the CBO predicts that interest rates will double in the next four years to over 5 percent for the ten-year Treasury Notes. That means that interest on our national debt will approach $1 trillion annually, making interest on the national debt the fastest growing portion of the federal budget.

Now that’s just a fact.  

By 2017 interest could be the third largest line item in the federal government.

And Obamacare, far from solving the spending crunch, will accelerate it.

 “Spending for major health care programs will be nearly 5 percent of GDP in 2013,” says the Congressional Budget Office [CBO] “and such spending is projected to grow rapidly when provisions of the Affordable Care Act are fully implemented by mid-decade, reaching 6.2 percent of GDP in 2023.”


John Ransom

John Ransom is the Finance Editor for Townhall Finance.