An article in the Washington Post today promotes yet another right wing lie about Obamacare aka the Affordable Care Act, claiming that the ACA increases the deficit rather than reducing it:
President Obama’s landmark health-care initiative, long touted as a means to control costs, will actually add more than $340 billion to the nation’s budget woes over the next decade, according to a new study by a Republican member of the board that oversees Medicare financing.
Jonathan Chait proceeds to nail the Koch-funded author of the paper, Charles Blahous (all emphasis in this piece is mine):
That sounds pretty legit, right?
Actually, no. It’s not even remotely legit.
The first thing to understand here is that this is not a study by a government agency. It’s a paper by Charles Blahous. Who is Charles Blahous? He’s a Republican policy guy. By tradition, the president appoints a member of each party to serve as a trustee of Medicare and Social Security. Blahous, who served under George W. Bush and was active in his attempt to introduce private accounts into Social Security, is the Republican trustee. But the other trustee, Robert Reischauer, has zero to do with his paper. It was published by the Mercatus Center, a Koch-funded organization that produces some quality work as well as a fair amount of schlock that does not meet the standards of your typical university economics paper. This paper is an example of the latter.
The Affordable Care Act spends a bunch of money to cover people who are too poor or sick to afford their own health care. To pay for that, it raises some taxes and cuts a bunch of spending from Medicare. The new revenue and the spending cuts outweigh the cost of the new spending, which is why the Congressional Budget Office projected it to reduce the deficit. Projections always have a margin for error attached, but the CBO’s two year update actually bumped up the savings projections a bit.
According to Chait, Blahous obtained his measure of the bills’s cost using a conceptual trick:
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It’s not every day you see this kind of press release from a Republican senator: “Two major pieces of legislation introduced by U.S. Senator Scott Brown (R-MA) will be signed into law by President Obama at White House ceremonies this week. As the first to introduce both the STOCK Act and crowdfunding legislation in the Senate, Senator Brown was invited and will attend both signing ceremonies. ‘I’m honored to receive these invitations from President Obama and I look forward to standing next to him as he signs these bills into law.’” So we’ve seen likely Democratic opponent Elizabeth Warren star in Obama’s campaign documentary. And now Brown is shouting from the mountain top that he’ll be standing next to Obama at signing ceremonies this week. Brown has two major hurdles to overcome if he’s going to win a full term: One, he’s trying to win as a Republican in a blue state during a presidential year. And two, how does he avoid getting defined by Romney? Well, we see what Brown is TRYING to do, have photo-ops with Romney’s opponent. Here’s betting we see Brown use his appearances at these signing ceremonies in TV ads while trying like mad to avoid appearances with Romney. 




















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