Greenspan on Heath Care Costs: Severe Consequences if CBO is Wrong
Former Fed Chairman Alan Greenspan told me the probability that the CBO was too rosy in its projections of health care costs is “much higher than we would like”. “You have to ask yourself, ‘What happens if we are wrong?’”, Greenspan said in my exclusive “This Week” interview. The consequences, he ominously warned, “are very severe”.
WATCH VIDEO HERE:
TAPPER: The president signed massive health care reform legislation
into law a few weeks ago. You have expressed concern about the
legislation, as it was making its way through the process, about whether
or not it did enough to contain costs. What did you think about the
final legislation? Does it contain costs enough?
GREENSPAN: Well, the CBO, incidentally, Congressional Budget
Office, which is really a first-rate operation, says that it does. The
problem is not their estimates, but the range of potential error in
those estimates.
And when you’re dealing with an economy in which debt is becoming —
federal debt is becoming ever increasingly a problem, it strikes me that
when you’re dealing with public policy and you’re in a position where
you have to ask yourself, “What happens if we are wrong?”
In other words, in the case now, where our buffer between our
capacity to borrow and our actual debt is narrowing, for the first time,
I think, in the American history, there’s a question, supposing we are
wrong on the cost estimates, and, indeed, they are actually much higher
than the best estimates can generate, the consequences are very severe,
whereas if they are too high, it’s very easy to adjust.
So I think it’s — it’s — there’s an issue over and above the
question of what’s the best cost estimate. There’s a policy strategy
here which I think requires us to lean in an ever more conservative area
with respect to judging…
(CROSSTALK)
TAPPER: So it might have been too rosy, the projections, you’re saying?
GREENSPAN: Possibly. I don’t know that. But I do know that the
probability that it might be is much higher than we would like.
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Greenspan stopped just short of saying the bills scored by CBO didn’t include all the info needed for a full, honest, accounting. Purposely. Severe consequences ahead.
Posted by: smartlillena | April 4, 2010, 11:43 am 11:43 am
They will pay for it with inflation. Just as Ron Paul, Peter Schiff and others have warned.
Posted by: Ben | April 4, 2010, 5:26 pm 5:26 pm
“You have to ask yourself, ‘What happens if we are wrong?’”, Greenspan said in my exclusive “This Week” interview.
Why ask now? That very question was asked repeatedly during the Congressional ‘ram through’, yet, was never answered. There are MANY variables with healthcare that could change the financial face of the bill in the snap of a finger. Obviously, cost, public opinion, effectiveness, and future planning weren’t necessary in this legislation.
As the population grows, research and development grows, testing grows, payrolls grow, technology grows… the COSTS of healthcare will grow along with it. It’s not that hard to figure out. As I said earlier, there are SO many variables, how could they possibly KNOW the cost? Quick answer…they don’t.
Posted by: Shoe | April 4, 2010, 5:33 pm 5:33 pm
Besides the Doc Fix, the CBO also didn’t factor in the expense of actually implementing the legislation. Estimates of that have placed it at well over $100 billion over the next 1-0 years.
Posted by: Mike | April 4, 2010, 6:00 pm 6:00 pm
It is like watching a train wreck over and over again with out the conductor trying to change course even though he knows that his actions will lead to another wreck.
If you look at the national debt clock you will see that every family is over $100,000 in debt by the federal government. You will also see that the liabilities to equity ratio is unsustainable and common sense will tell you that we are on that train wreck again.
Greenspan is known for being very careless in his estimates, and if he is pointing towards the fact that maybe there is a problem, you better believe there is a problem.
Posted by: colcal | April 4, 2010, 6:38 pm 6:38 pm
ABC: Why bother asking the questions now? You didn’t care when it was being rammed down our throats – don’t pretend to care now.
Posted by: Stacy in Michigan | April 4, 2010, 7:34 pm 7:34 pm
So where were all you people when we were being lied to into a senseless war in Iraq? No doubt you were all for spending money we don’t have.
At least we will now be borrowing money to go towards keeping people alive (Yes, including you and your loved ones!) instead of for killing people.
Posted by: OtherSide | April 4, 2010, 8:41 pm 8:41 pm
how far he’s comoe from his Ayn Rand roots.
Posted by: rhys | April 4, 2010, 9:00 pm 9:00 pm
“At least we will now be borrowing money to go towards keeping people alive (Yes, including you and your loved ones!) instead of for killing people.”
Then I guess we can ask Al Franken how many governments have had medical bankruptcies.
Then how many people will die because of it? Borrowing money for health care isn’t a solution, all you are doing is creating an additional problem.
Posted by: David | April 4, 2010, 9:13 pm 9:13 pm
DUH – NO KIDDING. OUR ROYAL LEADERS ARE IDIOTS. PERIOD.
Posted by: Manitu | April 4, 2010, 9:31 pm 9:31 pm
At least we are trashing our nation to keep people healthy for a short time until we can’t borrow any more and it all collapses like Argentina and nobody gets any health care at all and the whole social net collapses. At least we are doing it for the right reasons!
Posted by: A.Sleestak | April 4, 2010, 9:32 pm 9:32 pm
Isn’t Greenspan the anti-regulation fool that led our country off an economic cliff? I would sooner take economic advice from Stalin.
Posted by: AC | April 4, 2010, 9:42 pm 9:42 pm
Well, I’m not surprised but I wonder where everyone was when this was happening? Now, all the dire predictions are coming out, when WE were screaming this all along. By WE, I mean those of us who don’t trust the HCR or the CBO reports. I smell big trouble both financially and medically.
Posted by: nancy | April 4, 2010, 9:56 pm 9:56 pm
I WOULD JUMP THE GUN AND INVEST IN SOME FISHING GEAR, BUT AS I UNDERSTAND, THE FED IS TRYING TO SHUT DOWN LOCAL FISHING SITES? I AM ON SOCIAL SECURITY AND OBAMA IS GOING TO NOT ONLY WRECK OUR WOUNDED, BUT EXCELLENT HEALTH CARE SYSTEM, BUT TAKE OUT MEDICARE AND SS AS WELL. NO, I AM REALLY NOT AN ALARMIST. TRY REALIST?
Posted by: Manitu | April 4, 2010, 10:25 pm 10:25 pm
Well, in a few short weeks, Obama and his Democrat Mafia will add millions of illegals to the healthcare rolls along with every other welfare roll known to us. Welcome to 3rd World Tyranny.
Posted by: Howard | April 4, 2010, 10:40 pm 10:40 pm
Unfortunately, ABC and most of the other media are totally controlled by liberals who only cover what they want us to know from their point of view. Things that don’t fit their agenda (e.g. ClimateGate) are swept under the rug.
Posted by: bcf3b | April 4, 2010, 10:51 pm 10:51 pm
This may sound chilling but the war may be the only things keeping this countries economy afloat. It seems to be the only profitable export America has that isnt being made cheaper elsewhere. Imagine what will happen if our soldiers return home to joblessness, inflation and the military industrial giant companies fall silent and dead.
Posted by: superminority | April 5, 2010, 1:36 am 1:36 am
Unfortunately, ABC and most of the other media are totally controlled by liberals who only cover what they want us to know from their point of view. Things that don’t fit their agenda (e.g. ClimateGate) are swept under the rug.
Posted by: bcf3b | Apr 4, 2010 10:51:03 PM
______________________________________
Over and over, we see what was documented in the recent Anti-Defamation League report . . . , extremist, conspiracy-based, right-wing paranoid nonsense . . . not good for anybody, not good for the country.
Get out and do something positive for your community instead of this junior boy-scout, flush out the commies nonsense.
Posted by: tierra | April 5, 2010, 3:04 am 3:04 am
The CBO numbers and the ‘deficit neutral’ bill aren’t until ‘Doc Fix’ is passed. Until Doc Fix is passed this bill is adding to our deficit.
The Republicans raised serious concerns about the CBO numbers but were ignored or ridiculed by the MSM. The irony of this entire fiasco is that it will be the people screaming to pass this bill that will suffer the most now that it has.
Posted by: Adam M | April 5, 2010, 9:51 am 9:51 am
rhys: “So where were all you people when we were being lied to into a senseless war in Iraq?”
Lied to by whom? All major elected Dems were for the war until they realized they could kill more people and spend more time and money to politically ruin Bush and win in the next election cycle.
Posted by: JeffersonAdams | April 5, 2010, 11:02 am 11:02 am
Since when does “range of potential error in those estimates” equate to “first-rate operation (CBO.)” Of course, when Washington/Obama needs favorable figures to pass another enormous entitlement program tax PAYING citizens can’t afford and a program he couldn’t afford to lose that puts his name in the history books…
Posted by: Parallex View | April 5, 2010, 11:41 am 11:41 am
A lot of their estimates are based on current expenditures. What happens when the “baby boomers” (otherwise known as the useless generation) start retiring? Those costs will quadruple.
Posted by: pcnav | April 5, 2010, 1:04 pm 1:04 pm
I implore ABC and the US media – Please stop covering for and abetting Obama.
Please – PLEASE – help us, the American people. Our country, our freedom, our fortunes, our children’s future is being destroyed by this man.
Why is your loyalty and support solely for Obama, not your fellow citizens?
Posted by: Gorgo | April 5, 2010, 1:10 pm 1:10 pm
When Clinton and Bush were in office the world held it’s breath when Greenspan spoke.
He watched this whole mess slide into chaos, watched Obama double and triple down on the bets, and said zip, zilch, nada, and NOW he tells us…AFTER HC has passed.
Thanks for the head’s up! Pity you didn’t say a single WORD while this travesty with the CBO was happening!
Might have been nice to know BEFORE congress passed this obamination of a tax bill!
Posted by: ellenm | April 5, 2010, 1:54 pm 1:54 pm
if you’re not going to question any of Greenspan’s BS statements, or attack his record, during which he orchestrated the collapse of the USA economy, get someone on there who will… I’d love to see a meeting of Greenspan and Schiff, however we all know Greenspan is far too cowardly to engage in such an event… so at least let someone on who will speak up for capitalism and defend the country that our founding fathers fought for. for example: Peter Schiff, Ron Paul, or Rand Paul.
Posted by: akira | April 5, 2010, 5:59 pm 5:59 pm
Pity you didn’t say a single WORD while this travesty with the CBO was happening!
Posted by: ellenm
—
It’s more than a pity. It should be a damn crime. Until such behaviour becomes criminal it will never stop.
Posted by: smartlillena | April 5, 2010, 6:42 pm 6:42 pm