Sunday, July 29, 2012

Hovde rejects CBO Estimates on "Obamacare," then gets it all wrong!!

Eric Hovde's run for the U.S. Senate is starting to mirror dumb Ron Johnson's successful campaign; Hovde is all wrong about the Affordable Care Act, and will probably never be corrected...except here.

Background: The CBO originally estimated the Affordable Care Act would save over $1 trillion in the last ten years of it's twenty year projections. It's probably more now, because Republican governors will be saving the federal government money by not expanding Medicaid in about 6 states.

Mike Gousha (goo-shay) tries but fails to get Hovde to consider the facts. Hovde, like Johnson, will rely instead on his own business sense and...his gut feel? Why the CBO pours over all those numbers is anyone's guess.

Hovde is correct about the first ten years of revues and expenses, but deceptively fails to mention the $109 billion savings or that there is nothing illegal about it. Is it illegal to tax and save, and then start the new program once the funding is there? Thrown in jail? What is he talking about?

The CBO projections are different because, as Ezra Klein explains, the years change:
But as you can see in the graphs below, if you compare any given year that the two CBO estimates share, the cost hasn’t doubled, or even done anything close. The disparity in the cost estimates only comes when you take a different sample of years, in which the law is doing different things, in an economy of a different size. And even then, costs went up only if you take “gross” costs rather than “net” costs, which is a rather unusual way to think about the budget.

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