Sunday, July 26, 2009

The Cost Of Healthcare Is A Sideshow

Many elements of the healthcare debate have been frustrating—the media’s continued attempt to trivialize the key issues and dumb down the dialogue (some commentators have gone so far as to criticize Obama’s recent press conference for being too serious), the depravity of Republicans who couldn’t care less whether the status quo persists, and the “Blue Dog” Democrats who continue to side with GOP obstructionists to stall reform—but the most ridiculous arguments have been over the cost.

Major reform that gets us close to universal healthcare will apparently cost taxpayers about $100 billion a year more than we currently pay; this is a 10% increase over the $1 trillion the government already spends annually on healthcare. Obama has identified cost-savings that can pay for about two-thirds of this $100 billion, leaving around $35 billion a year in new revenue that needs to be raised.

Bottom line: this is peanuts.

I have no idea why the Obama Administration, usually so adept at managing the narrative, has let the issue of cost become so contentious when it’s really a non-issue. The notion that Republicans, after squandering a major surplus and turning it into an almost $8 trillion deficit, now care about fiscal responsibility is simply not credible. Bush’s tax cuts for the wealthy would cost more than $2 trillion over a decade; they passed with no offsetting savings, and were added 100% to the deficit. The Iraq War has cost more than a trillion dollars and counting, to say nothing of the stepped-up war in Afghanistan.

It’s admirable for Obama to insist that healthcare reform be revenue neutral, yet instead of being applauded for this he gets criticized for needing to raise a modest amount of new revenue? And this to cover almost 50 million Americans who now lack any coverage whatever? It’s simply insane, but sadly it’s also indicative of contemporary political discourse and the media’s inability to focus on substance over spin.

But again, much of the fault lies with the Obama Administration for not doing a better job of putting into perspective how little the healthcare proposals cost, especially compared to the benefits. I am baffled at this lapse. Maybe the Administration knows something I don’t. The way I see it, it’s time to end the sideshow over cost and make the case loud and clear.

Jason Scorse

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