Prof Mansur on the massive new tax and spend measures by bo.
Fifteen months into his presidency, Barack Obama has demonstrated by getting his health care legislation through Congress that there is no constitutional propriety he will not tear asunder in building his legacy.
It did not matter to President Obama, in pursuing his legacy, the cost of ObamaCare to the U.S. economy, and who will pay for it or how.
The U.S. economy is faced with a rising tide of budget deficits and national debt with spending recklessly exceeding revenue. The figures are astronomical and make no sense to those Americans who habitually vote for Democrats.
The ratio of federal debt to GDP is shooting northwards, as a recent Wall Street Journal editorial described. In 2007, when Democrats took control of Congress, the ratio was 36.2%, a year later 40.2%, “reaching an expected 63.6% this year, 68.6% next year and above 70% later this decade even by White House reckoning.” ObamaCare might send the ratio past 100%.
Who pays for ObamaCare, presently estimated at a trillion dollars and climbing? Much of it will have to be by borrowing, and hence health care for Americans will be paid for in part by China, which is expected to buy U.S. treasury bills as Washington’s main creditor.