This graph is from the same Treasury report that I mentioned in my previous post. The scale on the left is the percent of GDP represented by the increasing Medicare expenditures over time. Three things to note:
- These are the projections under current law, i.e. with ObamaCare. Without ObamaCare the expenditures are estimated to be even higher.
- A large and increasing proportion of expenses are not covered by current levels of taxation.
- It assumes an average 5% per year per recipient growth in spending.
This reminds me of Elbert Hubbard’s (not to be confused with L. Ron) wisecrack: “No man needs a vacation so much as the person who has just had one.” Now that we have healthcare reform what do we need? Healthcare reform.
Does that seem more or less likely now than it did in 2009?