Video: 3 reasons ObamaCare will be a budget buster

posted at 12:15 pm on November 11, 2009 by Ed Morrissey

Cato’s Dan Mitchell returns to explain what should be obvious: the creation of the new ObamaCare entitlement will behave like every other entitlement that preceded it. In fact, that point is so obvious that it shouldn’t take the Center for Freedom and Prosperity to point it out.  Medicare was supposed to be a limited government program that provided a safety net for seniors and the disabled, not a comprehensive insurance plan that crowded out private insurance from that market.  With Medicare careening towards collapse, the notion of replacing it with an even larger and more intrusive entitlement should result in guffaws of laughter from everyone — but as Mitchell points out, the politicians aren’t laughing over the power this would give them:

Why did Medicare explode from a safety net to a nanny-state entitlement?  Mitchell hits the nail on the head; the government involvement allowed politicians to use it to buy votes.  They kept expanding it in order to pander to voters, telling them that it would either pay for itself, or that villainous insurers or innovators (such as pharmaceuticals) would pay their freight for them.  In that sense, Medicare has been a rousing success for politicians.

But of course it isn’t free, any more than buying something with a credit card instead of cash is free.  All it does is shift payment to the future, which is why Medicare threatens to swamp the US with massive amounts of spending over the next few decades.  A rational reform would limit Medicare back to its original intent and create space for the private sector to compete to serve its enrollees.  Instead, Beltway politicians want even more power to pander, and lobbyists won’t be far behind — because as the government grows larger, so do the spoils.


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Medicare was supposed to be a limited government program that provided a safety net for seniors and the disabled, not a comprehensive insurance plan that crowded out private insurance from that market.

That’s what’s funny isn’t it?

Before Medicare passed, seniors had access to medical insurance at a discount rate. Medicare was sold as obamacare is being sold now – just another competitor in the market. After it passed, it did just that – crowded out the private competitors due to unfair practices.

And lo and behold, it’s how they are trying to do it again. And the same usual suspects (democratards and their enablers) claim it won’t crowd it again with unfair practices.

lorien1973 on November 11, 2009 at 12:18 PM

Like bulldozing a house because it needs a coat of paint.

flipflop on November 11, 2009 at 12:20 PM

You’re only as free as you are independent.

beatcanvas on November 11, 2009 at 12:26 PM

A government that robs Peter to pay Paul can always depend on the support of Paul.
George Bernard Shaw,

Still true.

fourdeucer on November 11, 2009 at 12:28 PM

A government that robs Peter to pay Paul can always depend on the support of Paul.
George Bernard Shaw,

A local pundit here in CT quoted that, then said that all the Peters needed to stand up for themselves.

She may want to rephrase that.

Steve Z on November 11, 2009 at 12:30 PM

only 3?

MarkTheGreat on November 11, 2009 at 12:31 PM

If buying votes by giving illegal aliens healthcare and amnesty, the democrats have wonbe the war to control our nation without firing a shot. The one party rule will the government and the dismantling of the Constitution will begin immediately starting with term limits for the president.

volsense on November 11, 2009 at 12:32 PM

It’s more like 12 reasons ObamaCare will be a budget buster. Where did the 3 in the title of this thread come from?

thuja on November 11, 2009 at 12:35 PM

A local pundit here in CT quoted that, then said that all the Peters needed to stand up for themselves.

She may want to rephrase that.

Steve Z on November 11, 2009 at 12:30 PM

The government health care plan will probably address that as well.

fourdeucer on November 11, 2009 at 12:37 PM

Liberalism is the philosophy for those who feel the world is over burdened by facts.

RadClown on November 11, 2009 at 12:43 PM

People have to understand that it is not about healthcare, it is about gvmt control.

rjoco1 on November 11, 2009 at 12:45 PM

This poor guy has an annoying voice and makes goofy faces. It is distracting.

di butler on November 11, 2009 at 12:47 PM

The main reason Federal Health Care will be a disaster is simply because the Federal Government cannot run anything that resembles a business in a business like manner;
Show one Federal program that has been successfully administered?
…………………………………………………… I didn’t think so.
And people think that these incompetent politicians can run any enterprise?
Oh, yea; Many people are engaged in our demise on a daily basis. Many are openly working on it. How about the terrorist in the White House that apologizes and berates America? And others that illustrate and orate their hate for our Nation?
Nidal Malik Hasan; MMMMMM, MMMMMMMM, MMMMMMMM!

Cybergeezer on November 11, 2009 at 12:52 PM

Unemployment Skyrockets: “U.S. now beating European unemployment rates”
by Hans Bader

Unemployment is now higher in the U.S. than in Europe, reports the Washington Post. “The official U.S. unemployment rate, reported last Friday, now stands at 10.2 percent,” compared to “9.7 percent” in Europe. This is the highest rate in more than 26 years, and marks a huge change from the recent past, in which unemployment was double the American rate in much of Europe, such as in France.

Unemployment is at 10 percent in France, which refused to adopt a U.S.-style stimulus package, and only 7.6 percent in Germany, which adopted a stimulus package that was smaller relative to its economy than ours was. (Countries that refused to adopt big stimulus packages have fared better than those that imitated President Obama. And the biggest-spending countries have suffered worst in the recession.)

http://www.openmarket.org/2009/11/10/unemployment-skyrockets-us-now-beating-european-unemployment-rates/

KentAllard on November 11, 2009 at 12:57 PM

I am starting to believe the people who are saying this is not about health care and is about government control. That seems like a grassy knoll conspiracy but I am starting to believe it to me true. There is just no way the Liberals in charge can actually believe this is a good thing for the country they are serving.

watson007 on November 11, 2009 at 1:01 PM

Fascism = Big Government
Big Government = Fascism

Mojave Mark on November 11, 2009 at 1:15 PM

fourdeucer on November 11, 2009 at 12:37 PM

Salt in every pant!

Oh Mercy on November 11, 2009 at 1:21 PM

This poor guy has an annoying voice and makes goofy faces. It is distracting.

di butler on November 11, 2009 at 12:47 PM

Get.
Better.
Spokesmen.

Count to 10 on November 11, 2009 at 1:47 PM

Get.
Better.
Spokesmen.

Count to 10 on November 11, 2009 at 1:47 PM

If I remember correctly, Steele has a magnificent voice.

Laura in Maryland on November 11, 2009 at 2:05 PM

Cybergeezer on November 11, 2009 at 12:52 PM

But..but…but Mister Obama said it would be as great as the Post Office! That has to be the pinnacle of success……..

/sarc

search4truth on November 11, 2009 at 2:15 PM

Sorry Dan, that CATO Dutch chick was more fun to look at and therefore more effective.

NickelAndDime on November 11, 2009 at 2:47 PM

Romney-care Romney would disagree with everything in this video.

nottakingsides on November 11, 2009 at 3:31 PM

This poor guy has an annoying voice and makes goofy faces. It is distracting.

di butler on November 11, 2009 at 12:47 PM

Get.
Better.
Spokesmen.

Count to 10

Or maybe people could grow up and actually listen to what he is saying instead of making juvenile comments about his appearance. Anyone who is that easily distracted wasn’t really interested in what he was saying anyway.

xblade on November 11, 2009 at 5:18 PM

Whatever are the Canadians, the ones who have a disease-bomb ticking inside themselves and can’t get a quick, life-saving appointment/procedure, to do once America has the same health program? Or for that matter, those oil sheiks that come to the USA in custom 747’s?

Go to Japan? Kenya?

Maybe our doctors will all head to Costa Rica and rename it Dr. Rica. ?

Robert17 on November 11, 2009 at 9:10 PM