Dang. I know it’s not polite to brag, I told you so, but I just can’t help it. For most of the last four years I’ve been blogging, progressives (a group I admit having joined in the process) have been arguing with conservative bloggers about the “financial cliff”. With an historically high national debt and the immense burden of the Great Recession, two wasteful wars, nation-building in Iraq and Afghanistan, and a dysfunctional, money-based
healthcare system (all of which president Obama inherited), we were told that we must embrace a financial policy of austerity. Otherwise, the government would collapse and our children and grandchildren would be doomed to poverty. The Tea Party actually shut down the government over this issue. Fortunately, we had a president at the helm who quietly did what was necessary, including TARP, Stimulus policies, cash for clunkers, unemployment benefits extensions, Wall Street reform, and the auto bail-out. Well, guess who was right? You won’t hear it on Fox News.
Paul Waldman of the Washington Post reports
Today the Congressional Budget Office released its latest economic and fiscal projections, and guess what: The news is pretty good. In fact, all the “deficit hawks” out there who are deeply concerned about too much borrowing and the terrible choices our grandchildren will confront might want to write a letter of thanks to one Barack Hussein Obama.
To start things off, the CBO says the deficit this year will be $506 billion, or 2.9 percent of GDP. In 2013 it was $680 billion, so that’s a pretty steep drop. And in terms of GDP, not only is that slightly lower than the average deficit of the last 40 years (3.1 percent), it’s also a 70 percent decline from Obama’s first year in office, where because of the Great Recession, which brought both the need for more spending and a plunge in tax revenues, the deficit peaked at 9.8 percent of GDP.
He also reports that there has actually been a slowdown in Medicare spending (gasp). He says,
Like the program itself, the reasons for the slowdown in Medicare spending are complicated. But a big part of it is — you guessed it — the Affordable Care Act. The ACA has found direct savings in Medicare with things like cuts to some provider payments. More importantly, it has tried to achieve longer-term savings through means like encouraging hospitals to reduce readmissions (where a patient gets treated and released, then winds up back in the hospital a week later) and rolling out payment systems that promote more holistic care instead of just piling on expensive tests and procedures. It also has provisions that probably haven’t reduced spending yet but likely will eventually, like spurring the shift to electronic records.
Will president Obama get any credit for this? The next two elections will tell the story, but if the folks who get all their news from Fox News and conservative talk-radio have their way, he won’t. They will point out, rightly, that the national debt continues to grow and that there is much more to be done. They will also point out, wrongly, that their way would have been better. That’s the way faith-based politics works.