|[Ben]:||Bad budgeting skills ||Discuss This [1 comment so far] View Comments|
|Recently I've heard Democrats lauding the current Federal health care bill by saying it would reduce the deficit by so many billion dollars over ten years.|
That may be technically true (although the Fed.gov has never been good at sticking to budgets) but their program is entirely unsustainable.
I want to sign up for a spiffy country-club golf membership. The membership costs $500 every month and I have to commit to a lifetime membership. That is well outside of my budget of $255 a month, but I figure if I save for five years and don't buy a membership for that long, I can afford to pay for the following five years - and I'll even have a surplus at the end! Of course my liabilities extend beyond five years, but who cares? Over that particular ten year period, I will have achieved my budget goals.
That is essentially what the latest Democrat proposal does. Taxes and Medicare cuts start immediately, but benefits are delayed for several years. The first 10 year period might save money since we spend years paying for something we don't get, but beyond that we're spending beyond our means.
This is, of course, ignoring my ethical complaints about the concept, but it addresses the main claim I've seen Democrats hyping.
Bad budgeting skills