At last, a long-term thinker!

I wondered about this remark in the President's speech last Wednesday:

If we can successfully slow the growth of health care costs by just one-tenth of one percent each year, it will actually reduce the deficit by $4 trillion over the long term.

"Can that be right," wonders I? Surely the POTUS has some figures to back that up. If that's true, than the Peter Orzag scenario has some foundation.

Ed Morrissey gets a little help from King Banaian, whom he describes as "everybody's favorite economist." With all die respect, I have lots of favorite economists. But Banaian concedes this is true. Providing that your idea of long term is more than 363 years.

In a ten-year window, even if Obama delivered what he promised twice this week, it would save a grand total of $33 billion dollars — and that’s for the whole industry. If the government covered a third of the costs, the total deficit reduction over ten years drops to a mere $11 billion dollars. At that rate, how long will the “long run” need to be to save $4 trillion dollars in deficit spending? It would have to be 363 years and five months.

As John Maynard Keynes said "in the long run we'll all be dead." But who cares as your great-great-great-great-great-great-great-great-great-great-great-great-great-great-great-grandchildren cross that $4Trillion savings mark. It will be a proud day for the republic and will cement President Obama's legacy.

Health Care Posted by John Kranz at September 12, 2009 12:32 PM