Tuesday, July 21, 2009

Deficits for Dummies

Neil Barofsky, the special inspector general for the government’s financial bailout programs, says that a series of bailouts, bank rescues and other economic lifelines could end up costing the federal government as much as $23 trillion– a staggering amount that is nearly double the nation’s entire economic output for a year.

Since the unfunded liability for Medicare, Medicaid, and Social Security is triple Mr. Barofsky’s bailout estimate – more than the entire World’s economic output for a year – it’s interesting how Democrats and their enablers in the Main Stream Media avoid mentioning it. On the contrary, faced with Mr. Barofsky’s report and enormous unfunded liabilities, the Democrats want to blow trillions more on healthcare and energy “reform.” Their logic is probably that since their hole is so big, no one will notice they are still digging.

Unfortunately for Obama and his Prosperity Thieves, we will notice when the Democrats’ borrowing and spending causes “stagflation” – the old Carter era word for a stagnant economy coupled with inflation. Our taxes will go up along with unemployment, while tax revenues drop as total income falls. Inflation will eat up our investment values and property values will stall or fall.

Then, to compound the agony, the best healthcare system in the World will be trashed, and our industries and lifestyles will be destroyed in a futile attempt to stop natural climate change. We'll be a little bit warmer as we stand in long lines waiting for rationed healthcare to deny us hip replacement surgery because while we were waiting we became too old or feeble to pass the bureaucratic approval standards: "If you had hip replacement surgery five years ago, you would be OK, but now your body has deteriorated so much because of physical inactivity that an operation would be waste of scarce Universal Healthcare dollars."

Don't tell me this won't happen. I've already seen it happen to my buddy Arthur in England. His scheduled hip replacement was rescheduled year after year because England's National Health Service ran out of funds each year for surgeries to correct "non-life threatening" conditions, until finally a hip replacement wouldn't do him any good because of muscular atrophy.

You're next.

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