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  • CBO: Do Not Delay, Reform Entitlements Now

    Yesterday, the non-partisan Congressional Budget Office (CBO) released its latest Long-Term Budget Outlook and the news is grim. The preface opens,

    Under current laws and policies, rapidly rising health care costs and an aging population will sharply increase federal spending for Medicare, Medicaid, and Social Security. Unless increases in revenues kept pace with escalating spending, or spending growth was sharply reduced, soaring federal debt would weigh heavily on economic output and incomes.”

    Make no mistake, the pressure put on the federal budget by out of control entitlement spending is massive and unsustainable. To avoid massive tax increases or crowding out of any other spending program, entitlements must be reformed.

    CBO Director Douglas Elmendorf highlighted the urgent need for this reform in his blog post on the report:

    Making such changes sooner rather than later would lessen the risks that current fiscal policy poses to the economy. Although the policy choices that will be necessary are difficult, CBO’s long-term budget projections make clear that doing nothing is not an option: Legislation must ultimately be adopted that raises revenue or reduces spending or both. Moreover, delaying action simply exacerbates the challenge, as is discussed in the report.

    This report should be a wake-up call to the President and Congress. Last year, a bi-partisan coalition of top policy experts outlined steps Congress should take to reform entitlements. It’s about time to follow the expert’s advice.

    Posted in Economics [slideshow_deploy]

    7 Responses to CBO: Do Not Delay, Reform Entitlements Now

    1. Pingback: » Financial News Update - 06/26/09 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater

    2. Barb -mn says:

      More recognition of GOVERNMENT-run inefficiency, incompetence. Misleading with limitless tax dollars.

      GOVERNMENT KNOWS NO BUDGET, KNOWS NO CUTS, KNOWS NOT WHAT PRIORITIES TO ALL PEOPLE AS A WHOLE ARE as their primary focus is "special interests," paid by those with no interest or NO BENEFIT from. UNCONSTITUTIONAL!

    3. Wayne Hatch, Murphy, says:

      There are a number of government funded programs that target community needs. Affordable housing programs are one example. Unfortunately, millions of tax-payer dollars have been spent with dismal results. Look at Flint, Michigan. Over the years the City received millions of community block grant dollars to fund these programs. The major agency in the City had millions of appropriated funds from years back on their books that were never expended. Given the Flint experience, I posed a question to our Represenative inquiring as to whether there was an accounting of the appropriated funds for any Federal program that remained unspent from years back – my point being that if the funds were not expended, then same should be returned to the Treasury. No program was in place to do so. When the issue surfaced in Flint, the reponse was a grant program – a $25,000.00 housing rehab grant to anyone living in targeted areas/census tracts. Recipient qualifications – little to none. Today, the County Treasurer is advocating a gentrification program to rid the City of neighborhoods – many that had had millions of dollars invested in them to provide affordable housing to the less fortunate. Many programs continue to fail year-after-year and yet receive funding. Where is the oversight? The accountability? There appears to be no life-cycle for entitlement programs. They are enduring. They live forever. They buy votes.

    4. Glen, FL says:

      Wow, it must make you all feel so good to huddle and cling too opinions when you remove anything that doesn't match your views. Are you afraid of common sense debate?

    5. Pingback: Fix Health Care Policy | ObamaCare Only Makes Deficits Worse

    6. Betty Jo, TX says:

      Mr. President…why don't you tell the American voters those who are not good enough to get your entitlements? That means you would have to be forthcoming with the American people, now wouldn't it?

      Does this plan include Long Term Care for the elderly who have doctor approval recognition that they cannot take care of themselves for medical reasons? NO, IT DOES NOT. My dad was a WWII vet who lost everything because he was not entitled to anything thru Medicare for long term care.

      In 2000, I visited my dad in a nursing home who suffered a terrible illness and my 75yr old mother couldn't pick him up and take care of him. My parents had to pay over $4,000 a month for my dads care. My mother asked me why she worked all those years because not only was she watching my dad die; she watched as all of their retirement was lost.

      My mother passed away from a massive heart attack one week after my dad because of the stress of loosing everything they had worked for. We will all be there someday and there are no benefits now for the elderly and there certainly are not any in this joke of a Healthcare reform.

      Mr. President, why don't you include these people in your entitlements agenda? And, don't get me started on the lousy way our Country takes care of our troops. They are at risk of being defunded with all of this too.

      Before you take my money, fix the problem and tell the American voter and taxpayer how you are going to do it and please don't insult us by saying that this joke of a Healthcare reform is going to do it.

      Gimme a break and stop talking to us as if we are stupid.

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