An economy built to crash

[Carpy]

An Economy Built to Crash

Geithner admits Obama's budget 'unsustainable' for second year in row

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BY: Andrew Stiles - February 16, 2012 3:30 pm

President Obama described his fiscal year 2013 budget – the most expensive in United States history – as “a blueprint for an economy that is built to last.”

But even his own Treasury Secretary does not agree with that assessment.

For the second year in row, Timothy Geithner admitted before the Senate Budget Committee that President Obama’s budget takes no action to meaningfully reform entitlement programs, putting us on an “unsustainable” fiscal course.

“Even if Congress were to enact this budget,” Geithner said, “we would still be left with–in the outer decades as millions of Americans retire–what are still unsustainable commitments in Medicare and Medicaid.

In fact, Geithner said the same thing about the president’s budget last year.

“With the president’s plan, even if Congress were to enact it, and even if Congress were to hold to it, we would still be left with a very large interest burden and unsustainable obligations over time,” Geithner said in 2011. “That’s why we’re having the debate.”

The Congressional Budget Office projects that federal spending on Medicare and Medicaid will comprise an increasingly large, and inherently unsustainable, share of the economy in the coming decades.

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[smalltowngal]

The sad part is people have known our economy was on an sustainable path for years. It doesn't matter if a Democrat or Republican is elected. They're just going to try and kick the can down the road. Unfortunately, we're going to run out of road soon.

[JakeandEmmasMom]

Quoting smalltowngal:

The sad part is people have known our economy was on an sustainable path for years. It doesn't matter if a Democrat or Republican is elected. They're just going to try and kick the can down the road. Unfortunately, we're going to run out of road soon.

I'm very interested in your perspective on what should be done about this.  I asked in the thread that Carpy posted in another group, and wasn't able to get a very realistic answer.  Obviously the cost for Medicare is going to continue to rise dramatically as the Baby Boomers retire and their healthcare costs more and more as they age.  But what should be done about it?  It's such a catch-22 because on the one hand the country can't really afford it, but on the other hand how do you tell grandma and grandpa that if they get sick it's just tough luck when all their lives they've been counting on this program being available to them in their old age?  So, what's the solution?

[LindaClement]

Yup, that's huge.

Except that the US spends 16% of its GDP on healthcare.

Canada, the scary-monster socialist healthcare country up north here, spends 10%.

http://en.wikipedia.org/wiki/Health_care_in_Canada#Comparison_to_other_countries

[smalltowngal]

Quoting JakeandEmmasMom:

Quoting smalltowngal:

The sad part is people have known our economy was on an sustainable path for years. It doesn't matter if a Democrat or Republican is elected. They're just going to try and kick the can down the road. Unfortunately, we're going to run out of road soon.

I'm very interested in your perspective on what should be done about this.  I asked in the thread that Carpy posted in another group, and wasn't able to get a very realistic answer.  Obviously the cost for Medicare is going to continue to rise dramatically as the Baby Boomers retire and their healthcare costs more and more as they age.  But what should be done about it?  It's such a catch-22 because on the one hand the country can't really afford it, but on the other hand how do you tell grandma and grandpa that if they get sick it's just tough luck when all their lives they've been counting on this program being available to them in their old age?  So, what's the solution?

We should have been increasing the age of eligibility years ago as people's lifespans increased. We should do more in this country for preventive medicine. We have a system setup to encourage unhealthy eating because of lobbyists influence. The school lunch today for my DD was mozzarella sticks. That was considered the healthy protein source. :/ You have the corn industry that is heavily subsidized. You have an health insurance company that does everything they can to paying benefits owed by people so those people end up declaring bankruptcy and having to use public health care.

That's what I came up with in 60 seconds but I'm sure I'll come up with more while doing dishes. It comes back to our system become corrupt somewhere along the way and no longer doing what's best for citizens but best for lobbyists.

[heidimoose134]

It's really not shocking that the Medicare and SS portions of the budgets are going up. The baby boomers aren't getting any younger. Back when the programs were started, I don't think that they envisioned this. 

[Donna6503]

They also have a conservative prime minister and government

Quoting LindaClement:

Yup, that's huge.

Except that the US spends 16% of its GDP on healthcare.

Canada, the scary-monster socialist healthcare country up north here, spends 10%.

http://en.wikipedia.org/wiki/Health_care_in_Canada#Comparison_to_other_countries

[LindaClement]

Not seeing how that is relevant...

Quoting Donna6503:

They also have a conservative prime minister and government

Quoting LindaClement:

Yup, that's huge.

Except that the US spends 16% of its GDP on healthcare.

Canada, the scary-monster socialist healthcare country up north here, spends 10%.

http://en.wikipedia.org/wiki/Health_care_in_Canada#Comparison_to_other_countries

[JakeandEmmasMom]

Quoting smalltowngal:

Quoting JakeandEmmasMom:

Quoting smalltowngal:

The sad part is people have known our economy was on an sustainable path for years. It doesn't matter if a Democrat or Republican is elected. They're just going to try and kick the can down the road. Unfortunately, we're going to run out of road soon.

I'm very interested in your perspective on what should be done about this.  I asked in the thread that Carpy posted in another group, and wasn't able to get a very realistic answer.  Obviously the cost for Medicare is going to continue to rise dramatically as the Baby Boomers retire and their healthcare costs more and more as they age.  But what should be done about it?  It's such a catch-22 because on the one hand the country can't really afford it, but on the other hand how do you tell grandma and grandpa that if they get sick it's just tough luck when all their lives they've been counting on this program being available to them in their old age?  So, what's the solution?

We should have been increasing the age of eligibility years ago as people's lifespans increased. We should do more in this country for preventive medicine. We have a system setup to encourage unhealthy eating because of lobbyists influence. The school lunch today for my DD was mozzarella sticks. That was considered the healthy protein source. :/ You have the corn industry that is heavily subsidized. You have an health insurance company that does everything they can to paying benefits owed by people so those people end up declaring bankruptcy and having to use public health care.

That's what I came up with in 60 seconds but I'm sure I'll come up with more while doing dishes. It comes back to our system become corrupt somewhere along the way and no longer doing what's best for citizens but best for lobbyists.

So you see this as a much broader, systemic, problem that would require massive reform in many government agencies.  Interesting.  I would have to say that I agree with you.  There really isn't a 60-second sound bite answer to this problem.

[Donna6503]

There are really many different factors as to why Canada has a lower health care cost as a percentage of their GDP. Their healthcare system started out as each province running their own system and it grew into a national system.

All in all, Canada was never a socialist country nor is it now. No matter how you feel about their or our healthcare system.

Quoting LindaClement:

Not seeing how that is relevant...

Quoting Donna6503:

They also have a conservative prime minister and government

Quoting LindaClement:

Yup, that's huge.

Except that the US spends 16% of its GDP on healthcare.

Canada, the scary-monster socialist healthcare country up north here, spends 10%.

http://en.wikipedia.org/wiki/Health_care_in_Canada#Comparison_to_other_countries

[candlegal]

Actually we are out of road

Quoting smalltowngal:

The sad part is people have known our economy was on an sustainable path for years. It doesn't matter if a Democrat or Republican is elected. They're just going to try and kick the can down the road. Unfortunately, we're going to run out of road soon.