Tag Archives: Government Spending

News

CBO predicts Social Security cash deficits in 2010

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Ed Morrissey has the story at Hot Air.

Excerpt:

Four years ago, George W. Bush attempted to reform the entitlement program Social Security, warning that the system was accelerating into collapse and would soon run deficits.  Democrats scoffed and claimed the Social Security system was solid and wouldn’t have problems for at least 50 years, as Harry Reid told PBS’ Jim Lehrer in June 2005.  Just last year, the CBO — under the direction of Peter Orszag, now budget director in the Obama administration — claimed that the first cash deficits in Social Security would not come until 2019.

Now, however, the CBO has determined that Social Security will run cash deficits next year and in 2011, and by 2016 will be more or less in permanent deficit mode.  Hot Air has exclusively obtained the summer 2009 CBO report sent to legislators on Capitol Hill but not yet made public, which shows that outgo will exceed income for the first time since the 1983 fix on an annual basis in 2010…

And it’s actually worse than that.

Check out their update:

Steve at No Runny Eggs, who has been keeping a very close eye on SSA, says that the CBO numbers project some eye-popping payroll-revenue growth numbers to get back to surpluses (briefly) by 2012.  According to the numbers, CBO projects a 6.19% growth rate in 2012, and 5.69% in 2013, then dropping to 4.59% in 2014 and declining afterwards.  Assuming that they only peak at the 4.59% number for all three years — still a rather optimistic projection — Social Security never actually comes out of its deficits at all…

Click here to see a summary the CBO report.

The numbers are explained in the Hot Air post.

To understand the challenge that entitlement programs pose to a balanced budget, watch this 2-minute video.

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Commentary

How the irrational left prefers intentions over actual results

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Post from Red State. (H/T Babalu Blog via ECM)

Excerpt:

A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.

A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a  year.

So, the average Cash for Clunkers transaction will reduce US gasoline consumption by 320 gallons per year.

They claim 700,000 vehicles, so that’s 224 million gallons saved per year.

That equates to a bit over 5 million barrels of oil.

Five million barrels is about 5 hours worth of US consumption.

More importantly, 5 million barrels of oil at $70 per barrel costs about $350 million dollars.

So, the government paid $3 billion of our tax dollars to save $350 million.

We spent $8.57 to for every dollar saved.

How good a deal was that ???

They’ll probably do a great job with health care though!!

But at least they’re nice people, and so generous with other people’s money.

Videos

Hot Air and Michelle Malkin post new video of Michele Bachmann’s town hall

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I am happy because lots of major blogs are saying nice things about my favorite representative Michele Bachmann. (You can see all my posts on her here)

In a new video from a town hall meeting, Michele slaps down an idiot heckler.

She starts out by trying to inform the audience of the perils of nationalizing health care, citing the recent story about the 4000 NHS patients who were denied hospital beds for giving birth. So they ended up having their children in all kinds of nasty places.

The Daily Mail wrote:

Tory health spokesman Andrew Lansley, who obtained the figures, said Labour had cut maternity beds by 2,340, or 22 per cent, since 1997. At the same time birth rates have been rising sharply – up 20 per cent in some areas…

‘It shows the incredible waste that has taken place that mothers are getting this sort of sub-standard treatment despite Gordon Brown’s tripling of spending on the NHS.

‘Labour have let down mothers by cutting the number of maternity beds and by shutting down maternity units.’…

The NHS employs the equivalent of around 25,000 full-time midwives in England, but the Government has promised to recruit 3,400 more.

However, the Royal College of Midwives estimates at least 5,000 more are needed to provide the quality of service pledged in the Government’s blueprint for maternity services, Maternity Matters.

At the same time almost half of all midwives are set to retire in the next decade.

Well, as soon as Michele cites this story, some silly heckler starts to babble something about how similar things happen in American hospitals, like the hospital in MN. So Michele immediately shuts him down with this: “I’ve given birth here probably more times than you, sir.”

Click through to see the video either on Michelle Malkin or on Hot Air. And notice the positive reactions from Michelle Malkin and Ed Morrissey.

Also, click here for a picture of Michelle Malkin AND Michele Bachmann. Aren’t they lovely?