Sunday, March 19, 2017

The conservative senators are bunches of fun

WASHINGTON (AP) — Republicans intent on scrapping Barack Obama's Affordable Care Act have a budget problem.As it turns out, repealing and replacing the law they hate so much won't save nearly as much money as getting rid of it entirely, the goal they've been campaigning on for seven years. That means trouble for the federal deficit and for Congress' fiscal conservatives who repeatedly warn about leaving their children and grandchildren worse off financially.President Donald Trump and other GOP leaders know they can't just get rid of the law; instead they've vowed to "repeal and replace" it. So they've come up with a bill that would fix Obama's "disaster" and insist it would give Americans more choices on health coverage.But it only reduces the deficit by $337 billion over a decade and doesn't move the federal budget much closer to being balanced, if at all. That's one big reason many budget-conscious Republicans have joined Democrats in opposing the repeal-and-replace version pushed by the White House and House Speaker Paul Ryan, R-Wis.
They fear the drunken pilot, don't think he can fly the narrow gap.   
The initial Republican plan to completely scuttle the 2010 health care law promised a cut of more than $2 trillion from the deficit over 10 years.
Let me put this in words. That is 200 billion a year in less spending with Obamacare gone, and 200 billion saved, assuming they are doing consistent CBO math.  That 200 billion is why your premiums are sky rocketing up or down, Obamacare has put a 200 billion dollar income wedge in the economy, conditional on the medical industry.  Obamacare, in its current form, will crash or crash Congress becausem Republicans are not going to do the upkeep and jawboning to push it along.

Another way to look is to compare the current deficit in terms of interest and obamacare. The two count for all of it at the moment. Not saying that is a complete accounting as states would pick up some of the load.  But the numbers tell us that the economy is spending its limited currency risk on Congress, trying to get Congress to mark some of these conflicts to market. If not, Congress needs a general default mechanism.

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