[Rhodes22-list] Economics and Health Care

[Brad Haslett]

Rob,

You are trying to score cheap political points off an issue that is
apolitical.  This is not a liberal v conservative issue, Democrat v
Republican issue.  It is a simple mathematics and demographics issue.  Let's
assume that we have another windfall "boom" like the 90's dotcom "boom" and
we balance the budget again.  Nothing changes - the train wreck is still
waiting to happen. Keep eating sand!

Brad

On Jan 11, 2008 10:39 AM, Rob Lowe <rlowe at vt.edu> wrote:

> Man, talk about a one sided conservative press.  No mention of all about
> starting two wars and paying for them by borrowing money.  No mention of
> tax
> cuts (mostly for the rich) paid for with borrowed money.  No mention of
> the
> interest on the national debt eating up all discretionary spending in
> another decade.  No mention that most of the national debt occurred during
> the Regan and Bush years.  Sure health care spending is a problem.  But
> tell
> the whole story. - rob
>
>
> ----- Original Message -----
> From: "Brad Haslett" <flybrad at gmail.com>
> To: "The Rhodes 22 mail list" <rhodes22-list at rhodes22.org>
> Sent: Friday, January 11, 2008 8:46 AM
> Subject: [Rhodes22-list] Economics and Health Care
>
>
> > Here is the 900 pound elephant in the room that refuses to go away.
> > "Elephant?  What elephant?" When a candidate promises you a new benefit,
> the
> > question you should be asking is, "how are we going to pay for that when
> we
> > can't pay for what we've already promised?" Happy talk and wishful
> thinking
> > is not going to solve this!  Brad
> >
> > --------------------------------
> >
> > from the Financial Times
> >
> > US's triple-A credit rating 'under threat'
> >
> > By Francesco Guerrera, Aline van Duyn and Daniel Pimlott,in New York
> >
> > Published: January 11 2008 02:00 | Last updated: January 11 2008 02:00
> >
> > The US is at risk of losing its top-notch triple-A credit rating within
> a
> > decade unless it takes radical action to curb soaring healthcare and
> social
> > security spending, Moody's, the credit rating agency, said yesterday.
> >
> > The warning over the future of the triple-A rating - granted to US
> > government debt since it was first assessed in 1917 - reflects growing
> > concerns over the country's ability to retain its financial and economic
> > supremacy.
> >
> > It could also put further pressure on candidates from both the
> Republican
> > and Democratic parties to sharpen their focus on healthcare and pensions
> in
> > the run-up to November's presidential election.
> >
> > Most analysts expect future administrations to deal with the costs of
> > healthcare and social security and there is no reflection of any
> long-term
> > concern about the US's financial health in the value of its debt.
> >
> > But Moody's warning comes at a time when US confidence in its economic
> > prowess has been challenged by the rising threat of a recession, a weak
> > dollar and the credit crunch.
> >
> > In its annual report on the US, Moody's signalled increased concern that
> > rapid rises in Medicare and Medicaid - the government-funded healthcare
> > programmes for the old and the poor - would "cause major fiscal
> pressures"
> > in years to come.
> >
> > Unlike Moody's previous assessment of US government debt in 2005,
> > yesterday's report specifically links rises in healthcare and social
> > security spending to the credit rating.
> >
> > "The combination of the medical programmes and social security is the
> most
> > important threat to the triple-A rating over the long term," it said.
> >
> > Steven Hess, Moody's lead analyst for the US, told the Financial Times
> that
> > in order to protect the country's top rating, future administrations
> would
> > have to rein in healthcare and social security costs.
> >
> > "If no policy changes are made, in 10 years from now we would have to
> look
> > very seriously at whether the US is still a triple-A credit," he said.
> >
> > Mr Hess said any downgrade in the US rating would have serious
> consequences
> > for the global economy. "The US rating is the anchor of the world's
> > financial system. If you have a downgrade, you have a problem," he said.
> >
> > Moody's did once threaten to cut the rating of some of the US Treasury's
> > debt when Congress refused to pass the president's budget in the
> mid-1990s.
> > Other large economies, notably Japan in the 1990s, have had to suffer
> the
> > symbolic blow of losing their top-notch credit rating.
> >
> > Last year, David Walker, comptroller general of the US, caused
> controversy
> > when he compared America's current situation with the dying days of the
> > Roman empire and warned the country was on "a burning platform" of
> > unsustainable policies.
> >
> > Medicare and Medicaid spending, which has risen sharply over the past
> few
> > decades and now accounts for about 45 per cent of total federal
> spending,
> up
> > from about 25 per cent in 1975, has long been a source of concern.
> >
> > Last month, Peter Orszag, director of the Congressional Budget Office,
> which
> > advises Congress on the federal budget, said the issue was "the central
> > fiscal challenge" facing the US.
> >
> > Most presidential candidates have vowed to reform the healthcare system
> but
> > many of them, especially on the Democratic side, have focused on
> extending
> > coverage to the 40m-plus uninsured Americans rather than on cutting
> costs
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