10 June 2010

Yes, the danger must be growing / For the rowers keep on rowing / And they're certainly not showing / Any signs that they are slowing

Greg Mankiw | CBO on Health Spending

From a recent CBO presentation [pdf] (via Keith Hennessey):
Rising health costs will put tremendous pressure on the federal budget during the next few decades and beyond. In CBO’s judgment, the health legislation enacted earlier this year does not substantially diminish that pressure....Putting the federal budget on a sustainable path would almost certainly require a significant reduction in the growth of federal health spending relative to current law (including this year’s health legislation).
We are in a giant fiscal hole which is getting deeper all the time. The absolute best thing you can say about the fiscal impact of the HCR legislation is that it may not cause us to dig any faster than we already were. That's no way to get yourself out of trouble.

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