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Obamacare Costs More Than Twice As Much As Obama Claimed; Stimulus Creates Debt, Not Jobs

As Daniel Foster notes, "When it was being debated, Democrats told you ACA [Obamacare] would cost $940 billion over ten years . . . But now . . . the CBO is out with new cost estimates. They ain’t pretty”:

Today, the CBO released new projections from 2013 extending through 2022, and the results are as critics expected: the ten-year cost of the law’s core provisions to expand health insurance coverage has now ballooned to $1.76 trillion. That’s because we now have estimates for Obamacare’s first nine years of full implementation, rather than the mere six when it was signed into law. Only next year will we get a true ten-year cost estimate, if the law isn’t overturned by the Supreme Court or repealed by then. Given that in 2022, the last year available, the gross cost of the coverage expansions are $265 billion, we’re likely looking at about $2 trillion over the first decade, or more than double what Obama advertised.”

Obamacare will harm the health care system and reduce employment. The Dean of Harvard Medical School, Jeffrey Flier, noted that Obamacare will harm life-saving medical innovation. Obamacare is causing layoffs in the medical device industry. Obamacare will raise the cost of insurance by at least 55 percent in Ohio, according to one study. It taxes medical devices and cosmetic surgery, arbitrarily discriminates against certain hospitals, and raises taxes starting in 2013 on investors. The Associated Press and others have noted that it breaks a number of Obama campaign promises. Earlier, CEI filed an amicus brief against the health care law on behalf of Minnesota and North Carolina legislators.

Bloomberg News features an interesting column by Ramesh Ponnuru, "Obama's Stimulus Helped Grow Debt, Not Economy," which debunks some frequently-repeated claims about stimulus jobs and job projections. Harvard University economist Jeffrey Miron argued that the $800 billion stimulus package wasn’t even designed to stimulate the economy, but rather to benefit special-interest groups, since it ignored even old-fashioned Keynesian policy prescriptions about how to revive the economy. Obama claimed the stimulus was needed to prevent an “irreversible decline” in the economy,  even though the Congressional Budget Office admitted that the stimulus package would shrink the economy “in the long run.” The Congressional Budget Office, ignoring the stimulus package's flaws, argues that the stimulus has boosted the economy in “the short run." But even the CBO concedes that the stimulus will shrink economic output in “the long run” by increasing the national debt and thus crowding out private investment.