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August 25, 2009
Deficits: Why they threaten health reform – and what Obama might do
Posted: 11:59 PM ET
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David Gergen | Bio
AC360° Contributor
CNN Senior Political Analyst

If you were sitting in the White House, it is entirely understandable that you would decide to unveil the surprise announcement of Ben Bernanke’s reappointment today: that may be the best and only way to divert attention from other economic news that is eye-popping.

The Bernanke appointment will be welcomed in financial circles, both here and overseas, because he is widely seen as the man who stopped us from going over a cliff. While some in Congress remain relentless critics of Bernanke, President Obama will generally win high marks for a reassuring move.

Strikingly, this is the third time in recent years that a president of one party has reappointed the head of the Federal Reserve first selected by a president of the other party: Ronald Reagan reappointed Paul Volcker, a Carter appointee; Bill Clinton reappointed Alan Greenspan, a Reagan appointee; and now Obama is reappointing a George W. Bush appointee. All of the choices have been seen as wise at the time.

Yet even the Bernanke story cannot fully deflect attention from the other economic story engulfing the administration today: its official announcement of new economic projections – in particular, its acknowledgment that deficits over the coming decade will be even higher than it said only three months ago. Now, the administration is predicting that instead of $7 trillion in new deficits, the country will rack up a staggering $9 trillion in new deficits for the 2010-2019 period. (The Congressional Budget Office has published its own numbers today that are largely parallel.)

Deficits of that magnitude would be extraordinarily dangerous and irresponsible for the country. They would double the national debt, risk much higher inflation, saddle future taxpayers with annual interest payments of over $900 billion, make us even more reliant upon China as a creditor, and over time would weaken us as a great nation. Talk about trend lines that are unsustainable!

Health care reform was already in growing trouble before this report. These deficit projections clearly add another significant threat to its passage. The administration will now have to persuade Congress and a skeptical public that it would be financially prudent to embark upon an ambitious new entitlement program in the teeth of dangerously growing deficits.

As vital and as morally right as it is to extend health insurance to everyone in need, the public is also wise to worry about the costs of robust reform. People have long memories, and they will recall that when Medicare was passed in the mid-1960s during the LBJ years, the House Ways and Means Committee projected that Medicare would cost about $12 billion in 1990; in 1990, it reportedly cost some $107 billion.

When Washington enacted prescription drug reform in the George W. Bush years, the administration put a price tag on it of $400 billion over nine years; new estimates have projected a cost of $724 billion over nine years. More recently, Massachusetts has embraced a health reform plan that is widely hailed – and serves as a model for the national effort this year – but it, too, has far outstripped original cost estimates.

In view of all this, President Obama has a choice. He can push forward with health reform efforts, giving short shrift to these deficit concerns. If so – if he continues to insist that Washington is just too “wee-weed up” - he will find that some of his strongest allies will become more reluctant on a big health reform bill this year.

Or he can come to grips with these grim forecasts and present to the nation a credible, comprehensive plan for reining in long-term deficits before Congress acts on health reform. The second path demands more courage – and is also the one of real leadership.

186 Comments
186 Comments
JC- Los Angeles   August 25th, 2009 2:52 pm ET

As an Independent who voted for Barack Obama, due solely to deplorable alternatives, it should surprise no one that he is practicing on the American people.

While any neophyte of scant accomplishments, book advances aside, should be given ample time to govern, it's harrowing to see how quickly President Obama chose to compromise America.

Take over banks; check; take over automobile industry? check; take over AIG? check; take over health care? trying; bankrupting nation: trying real hard.

Niccole Lopiccolo   August 25th, 2009 2:59 pm ET

I know that Senator Ted Kennedy is in poor health. Horrible what is happening to him. Interested in seeing his total medical bill. The medical system is broken and analyzing the bill of a beloved public figure might open the eyes for what needs to be done to fix things. I know the reform stems deeper than a medical bill...but what a great way to stir things up a little. After you obtain the medical bill of the senator, do a compare and contrast between reform ideas....What would the reform do for that?

sidenote: I hope this does not sound disrespectful to pick a public figure. No disrespect intended. Talk to me is cheap, show me what you mean with something real!

Mississippi Mike   August 25th, 2009 3:05 pm ET

You know what? We can't afford this legislation. We shouldn't be tampering in private markets and we have no way to replace them with government heirarchies.

Rick McDaniel / Lewisville, TX   August 25th, 2009 3:13 pm ET

Health care can be made less costly for the government, but only if you take away the probability of fraud, in payments from the government, to private firms.

That means, a truly national health care, socialism if you prefer, that removes that waste, removes the profit from health care for private firms, and taxes employers for the monies they would have normally paid to private firms, in order to help pay for the public program.

Trying to put in a program that is half one thing, half another, simply isn't viable.

If the entire health care system, went public, then government would be able to contain costs, by setting medical salaries, by setting fair drug prices (everyone knows that drug prices in this country are excessive), and by taking the profit motive away from hospitals.

Yes, there will be the inevitable government wastefulness, that goes along with anything the government does. However, that should actually be far less a cost, than the profits the health care industry is now reaping.

The key here, is that you cannot go half-way.......you must literally choose to maintain the status quo, or you must make public health care universal for all. Half-way opens the door for fraud, excessive profiteering, and other excesses.

The one thing you absolutely CANNOT do, is to provide health care for the uninsured poor, on the backs of the middle class. The middle class must have relief.

Mari   August 25th, 2009 3:16 pm ET

Dear Mr. Gergen,

You are one of the pundits that we respect at our house. However, I must take issue with your criticism of the deficit. Where were was your criticism of George W. Bush, sir, when he was doubling the national debt, lying about the reason to attack Iraq and hiding the actual cost of the Iraq war, which over 8 years is substantial! Where was your criticism of Bush when this Great Recession had started and Bush sat by doing nothing?

Our "great nation status" was already in tatters when Bush left office, Mr. Gergen, the illegal war, the doubling of the national debt in eight years and worst of all, torture!

Now, Obama is in charge, faced with insurmountable problems which he inherited from Bush! And you, criticize? What solution, Mr. Gergen do you offer? What would you do if you were president?! Its quite easy to criticize when you are not in charge.

Health care is not important unless you are without it! In one of the wealthiest nations on earth millions of our citizens are without healthcare, and millions more ...... annually file bankruptcy because of the cost of healthcare!

The reasoning that we are in debt to China and therefore healthcare reform should be 'tabled' is wrong. By the way, we already have government run healthcare in Medicaid, Medicare and the Veteran's healthcare system! Lastly, let me remind you, sir, we are already paying for the uninsured!

Michele   August 25th, 2009 3:22 pm ET

Excellant article as always... What an untimely position for our president. Anything that is going to put us futher in debt is not going to be popular.... Reform what exists, fix the broken system that is medicare and medicaid, but keep your eye on covering all american citizens, it is the right thing to do..

Rod   August 25th, 2009 3:49 pm ET

Obama should blame only himself for the need to table his healtcare plan. He has proposed 8 times the cost of the Iraq War, and equal to the inflation adjusted cost of WWII.

Also, Americans have said they do not want his plan. The president is wrong to presume he should overrule Amercans because he thinks he knows what is good for them better than they do.

KIm   August 25th, 2009 3:50 pm ET

We've got your eyes popping and where is Hillary Clinton's town hall for Universial Health Care ? Vice President Biden has it covered on national security ! That's why we the people hired them and they wear a lot of different ,"team hats" well for solutions ! Raise your hand in America if you want to hear from Hillary Clinton on Universial Health Care and see her townhall ! McCain had one today ! "Fire it up and let's go !" Obama can relax on vacation,they've got it covered !

Ernie Banks   August 25th, 2009 3:52 pm ET

Obama has botched health care reform. What are we trying to accomplish? Insure more folks? Reduce long term costs? Punish evil insurance companies? Create national health insurance for everyone? Who knows.

If Obama can find a way to address any of these without raising taxes and increasing the deficit, I'll listen. But we shouldn't borrow money from our kids to pay today's hospital bill.

Rod   August 25th, 2009 3:55 pm ET

"Deficits of that magnitude would be extraordinarily dangerous and irresponsible for the country. They would double the national debt, risk much higher inflation, saddle future taxpayers with annual interest payments of over $900 billion, make us even more reliant upon China as a creditor, and over time would weaken us as a great nation. Talk about trend lines that are unsustainable!'

There are good reasons why the deficit is higher than projected, and will in the future be even higher, unless the warning of Warren Buffett is heeded soon. You can't spend so much money and do nothing to incentivize the private sector, especially small business, and not stare at a growing deficit down the road. The President should take to heart that the longer he delays workable solutions, the harder it will be to achieve recovery.

Bill Sanford   August 25th, 2009 3:57 pm ET

What would CNN have of any relevancy to comment on Obama?

CNN, lead the pack for "jumping in the Tank for Obama". It has been a prime cheerleader for a 'president' that is incompetent, and unwilling to learn. CNN has let down it viewership, it' s country (if it acknowledges one) and it's employees. It is a disgrace.

Now Gergen 'discovers' that obama is going to break the country. Little late, isn't it?

Karen   August 25th, 2009 3:57 pm ET

THis is the worst administration in US history. They continue to give out money to convicted felon and lobbyists who were annointed Czars without a background check, the media censors and uses propaganda to further his career.

We are broke. He has doubled the deficit in 7 months. What it took George Bush 8 years to do, Obama did in a few months.

This is terrible. I can't wait to have an idependent/republican congress to put some checks and balances on these left-wing extremists. I look forward to peaceful transition of power in January 2013 - Maybe President Rell or Pawlenty.

JoanyS   August 25th, 2009 3:58 pm ET

Mari says: You are one of the pundits that we respect at our house. However, I must take issue with your criticism of the deficit. Where were was your criticism of George W. Bush, sir, when he was doubling the national debt, lying about the reason to attack Iraq and hiding the actual cost of the Iraq war, which over 8 years is substantial! Where was your criticism of Bush when this Great Recession had started and Bush sat by doing nothing?

Typical liberal. Your savior goes south, so blame Bush. And where was Gergen when Bush was prez? Probably with the other 70% that disagreed with Bush. Now it looks like he'll be with the 53% (and rapidly growing) set of people that are against Obama. Hope and Change has turned into Hopeless and The Same.

ster   August 25th, 2009 4:00 pm ET

A commenter here stated we should take away the hospital's profit motive.

That's funny. It's the profit motive that helps keep costs down. To raise a profit, control costs. ECO 101.

If there is no profit movitve, there's no reason to control costs.

John in NC   August 25th, 2009 4:02 pm ET

Mari,

My simple question to you is – how much of your own money are you willing to give to someone in need?

Have you offered any of that money to your neighbors that have lost their jobs? Have your offered large portions (not the $5 and $10 variety) to homeless people in your town? Maybe you could even offer 20% of your wages to someone that is simply less fortunate than you so that they can have as much as you.

If you have not or are not willing to do any of the above, you're a hypocrite – the PETA member that eats meat, the vegetarian that eats fish or eggs, etc.

If you do any of these and they constitute a significant portion of your wages – you are a better person than me.

lampe   August 25th, 2009 4:02 pm ET

You people SLAY ME! Where were you when Bush did this, where were you when Bush did that. Give it a rest already. Obama got exactly what he ran for. He knew what he was getting into, and if he didn't OH WELL! Just because GWB ran up the deficit, as you all claim, that now makes it right for Obama to do the same? Remember two wrongs, don't make a right.

JohnR   August 25th, 2009 4:03 pm ET

Obamacare died the day the CBO confirmed that not only would Obamacare NOT reduce costs...it would add trillions to the deficit. This, combined with Obama's already reduced credibility from the failed stimulus and Cap & Trade, caused support for Obamacare to tank. Obama realizes this and now talks of health "insurance" reform; a much scaled back plan which he can actually get passed.

The fundamental problem is cost; we spend three times per capita what europe spends and have $100T (that's trillion) in unfunded liabilities for medicare in the out-years. And the ONLY solution is aggressive rationing...just like the europeans do. Naive children on this thread who think we can cut costs by achieving so-called efficiencies and taking profit (oh evil word) out of the equation are in denial. Nothing other than aggressive rationing will do the trick. Too bad the voters don't have the will to do what needs to be done.

shane   August 25th, 2009 4:05 pm ET

Mari,

Mr. Gergen is not the President of the United States. He did not go out and campaign, knowing full well what he would face, and state that he and only he was the one who could fix the country.

This was not completely inherited from Bush. Yes the recession started under Bush...but it has been made worse, FAR worse, under the Obama and his "fixes"

Michael   August 25th, 2009 4:07 pm ET

Ok, let me say one thing. Yes Bush definitely spent too much money but this current administration is doubling of Bush's doubling. That is going from 4 Trillion to 9 Trillion under Bush then Obama is going up to 18 Trillion. If you were to have a crazy couple of years with hardships and went $100,000 into debt and realized you were spending too much money would you spend $200,000 to get yourself back in line? I dont think so

Robert in LA   August 25th, 2009 4:08 pm ET

George Bush was not fiscally responsible, and was justly criticized for this by people in both parties and citizens left and right. However, Obama is dramatically accelerating the ugly trend that Bush started. Bush may have double the DEFICIT (the amount the government runs in the red each year) but Obama is actually doubling the DEBT (the total amount that the government owes as a result of all of its deficits). Obama's policies constitute fiscal recklessness on a new and breathtaking scale, even compared to George Bush.

Steve Bannister   August 25th, 2009 4:09 pm ET

Unfortunately, Professor Gergen, you are perpetuating one of the great myths of the neo-classical era of economics, now struggling for relevance.

One must look at several factors before responsibly judging a federal deficit or debt as "too large" or even "too small." This one is, all things considered, certainly not too large.

Thus, you advance a continuing and dangerous myth whose only purposes are to obfuscate the truth and protect the current political and wealthy elite. And in fact it will paradoxically end up hurting them as well. This is almost totally an ideological argument, not good economic theory or empirics.

You are smarter than that.

Michael Gallien   August 25th, 2009 4:15 pm ET

Mr. Gergen did not assess blame because at this point, it is not relevant. The deficit is what it is. His point is that we can't add the health tab to it. Point made. Blame Bush if you like. It won't solve the problem.

colt   August 25th, 2009 4:15 pm ET

The fat terd Ted Kennedy gets the best care in the world. He along with all the other liberal hypocrites in congress will not be affected by Obamacare. They will not be subject to it! They get to keep their gold plated care.

Paul   August 25th, 2009 4:17 pm ET

I love it when people mention that we have government programs already (medicare, medicaid, and the VA). This just makes the agrument against government run healthcare even greater. These programs are going bankrupt (but its okay because the government can print money). And look at the recent news of innapopriate use of funds within the higher ranks of the VA.

And just look at the comments within this story:

" the public is also wise to worry about the costs of robust reform. People have long memories, and they will recall that when Medicare was passed in the mid-1960s during the LBJ years, the House Ways and Means Committee projected that Medicare would cost about $12 billion in 1990; in 1990, it reportedly cost some $107 billion. When Washington enacted prescription drug reform in the George W. Bush years, the administration put a price tag on it of $400 billion over nine years; new estimates have projected a cost of $724 billion over nine years. More recently, Massachusetts has embraced a health reform plan that is widely hailed – and serves as a model for the national effort this year – but it, too, has far outstripped original cost estimates."

The government is never accurate on their estimates of costs. So what will be the final cost of this so called reform (government plan) that doesn't even get at containing costs. 3 trillion or more? People just hear the word free and they come running. But trust me this will not be free, our country will pay for it dearly!

JT   August 25th, 2009 4:18 pm ET

Great article. Why can't we fix what we have first with healthcare. If you have read any part of the bill, you can easily see that it is more about the government being involved with your choices than any real reform.

Think about it – why overhaul the entire system for a small % of the population? And yes, look at the reality of the "47 million" for a moment. Remove illegal aliens, remove those that can afford but chose not to get healthcare, remove those eligible for medicaid but chose not to, remove those eligible for employer sponsored plans but chose not to, and you have a much smaller number.

And, Marli? You might want to let the "It's all George Bush's fault" mantra go, sweet pete, already!!

It's not. Rahm Emmanual sat on the BOARD of FNMA during the crisis. YOu know him don't you? Obama's chief of staff? And Barney Frank? And Pelosi? For the love of honesty, READ, get the FACTS before you go with the Bush is the devil mantra. Yikes..

valwayne   August 25th, 2009 4:20 pm ET

David Gergen is right. Obama's deficits and $9Trillion debt are so staggering and dangerous to the health of the nation that it boggles the mind. Obama has to stop Health Care and focus on putting the nation back on sound economic footing. Its unbelieveable that fixing the nations economy and getting people back to work has been so far down his list of priorities that we don't even notice he's doing anything about it, except for the corrupt stimulous bill which has so totally failed! Obama's programs are risking damage to the nation that we will need generations to recover from, if ever. Follow Mr. Gergen's advice..now!

Paul   August 25th, 2009 4:22 pm ET

maybe one of the reasons that Americans overuse the health care system in this country is because we are also the fattest group of people in the world. This also leads to an explanation of why our people don't live as long as others.

Jack Davis   August 25th, 2009 4:25 pm ET

Oh Mari, PLEASE!

Enough about how all of this is George Bush's fault. WAKE UP! George Bush is NOT the president. Barack Obama is the president, and all of this became Obama's problem the moment he was sworn in.

As for the deficit, have you done the math on how Obama has increased the national debt more than all other presidents COMBINED?

And what else has Obama done so far? He's spent us nearly bankrupt. The stimulus plan is a nonworking joke. Cash for clunkers was a disaster for car dealers STILL waiting to get paid. And now he wants to destroy choice in health care.

Here's how choice is destroyed. CEOs across the country will opt out of providing health care the moment government gets into health care as a provider. Why? Because it will be cheaper for companies to pay fines and levies than it will be for them to continue providing health-care coverage.

So when my company dumps me into a government plan, because it's easier and cheaper for my company to do that, there will have gone my choice.

So, Mari, what do you have now? In incompetent in the White House whose latest goofball idea is to have his attorney general conduct a witch hunt in the CIA.

You need to get yourself educated as to what's going on NOW!

Shirley b.   August 25th, 2009 4:27 pm ET

I am so tired of hearing criticism of this president. He has not been in office for a full year and yet he is expected to do what so other president has done, simply because we have not been in this mess before. Not to mention the GOP hyposcrity. It is ingenious for the GOP to go on-and-on about how terrible the president is yet never lift one finger to help clean up the mess they created. They behave as if they are above it all. Irresponsible is the word. If the GOP don't want to behave responsibly, fine, just shut-up and move over. Quick hindering the President, at least he is trying. And another thing, President Obama is not just a good father, he is a decent, responsible human being who is being slandered (ever so nicely) by the good ole' boys who have trouble respecting an intelligent human being whose pigmentation is not the same as their own. So get over yourself GOP and try and pretend to be intelligent adults.

Brian Williams   August 25th, 2009 4:27 pm ET

In response to Mari. Bush sucked, I know, we all know, he sucked. We now have a President who took office, saw everything that Bush did and decided to continue most of what he did. What people, both left and right, have no comprehension of, is where this will all lead. Read up on the political history of the nice tourism spot of Jamaica, where you have two major parties who are basically the same, being elected by promising people the moon. Read up on the neighborhoods where you can be killed if you walk through it displaying the sign of the other party, but both are living in poverty. Read up on how it cost 50 cents for a kid to catch a taxi to primary school and how it cost the same kid $100 to catch the same taxi when he was going to high school because of runaway inflation. You see people blaming both parties and the government for their conditions but go back every election and reelect the same people because they promised you an extra dollar. The day we step back from both parties and look around and see that they are bring you to that same place because people cannot see that you do not vote for someone that takes from someone else to give to you, you vote for someone that will leave everyone alone to sink or swim and for people with moral and ethics to step in and help those who cannot swim with charities and donations etc: Not with government 'help.'
But what do I know? Everyone is entitled to his need from those with ability and it is the governments duty to provide it by means of force.

Jesse in Maryland   August 25th, 2009 4:29 pm ET

Well, Mari, I am pretty sure Mr. Gergen did criticize George W. Bush for his deficit spending. I'm rather conservative, and I criticized him for it! But simply saying that "Bush did it, too" is no reason to give Obama a pass on what he's done in the last eight months to make the problem even worse. Obama has already added more to the deficit in his first eight months than Bush did in eight years! He spent more money in his first six months than Bush did on the entire Iraq war.

Let's face it, both presidents are/were fiscally irresponsible, and by the numbers, Obama much more so than Bush. The solution is never blaming the last guy in office–it's Obama's chair now, and I haven't seen any evidence yet that these huge debts concern him. Health care is important, but given that the vast majority of American citizens either has health insurance or is able to purchase it (but choose not to), this is certainly not the time to be pushing America further into debt in order to meet that need. If Obama shows some fiscal sense in the future, I think he'll get more support for his health reform plans. Until then, most Americans are sick of the spiraling debt.

marion   August 25th, 2009 4:31 pm ET

Keep Spending,that's what Obama wants to do,It is fun to spend other people's money especially when you get the pat on the back for doing it. ... Obam's deficit is staggering to the mind but some how that has not slowed him down,are we sure he is on the side of Americans,it seems he is the world's side to bring America to its knees?...

gladRocks   August 25th, 2009 4:32 pm ET

For those who like to talk about Bush's debt, as a percentage of GDP, our debt under him increased by 30% while Obama will increase by 100% just based on the numbers they've given us, which will probably be worse. And that's after his first 6 months in office...

Michael A   August 25th, 2009 4:34 pm ET

What continually amazes me is how the people who that say America is the greatest nation on earth and can't be defeated are the sme ones who instantly say we can't have universal healthcare.
WE are the only industrialized nation without universal healthcare;
We spend almost twice as much on healthcare as any other nation yet are rated 27th. Doesn't look like the free market competition has done us much good .

Still Working in Michigan   August 25th, 2009 4:37 pm ET

Mr. Gergen is one of the cable pundits I can still tolerate. I agree the deficits are alarming and I wonder how much the nation can bear.

However, the future is just that unknown. So, how do we get out of this mess? President Obama needs to show leadership by first raising taxes on those making $250,000 and above. Let's be realistic, when Bush cut taxes this did not help the country. I am tired of hearing you can't raise taxes on the small businesses they create jobs. Well, from everything I've read, the small business owners received Bush tax cut benefits and millions of jobs were lost in 2008 (pre-Obama).

If you don't reform healthcare now then when? Medicare and Medcaid will be bankrupt unless something changes, you will have more people applying for both because people are losing jobs and getting older.

How can we pay down the deficits if there is no revenue? Everyone laughed when I believe it was Biden that stated, "it is American to pay more in taxes". Well, I believe what was seen as a gaffe is true.

We want the government to protect us (we're paying for 2 wars), we want the government to be there if we lose our jobs (how many times have unemployment benefits been extended), and seniors now believe the craziness of death panels (but don't touch Medicare or my Social Security Benefits). If people want the government out of their lives, have them do a stint in IRAQ and send along some of the card carrying NRA members for a stint in IRAQ. That should save us some money!

Freedom is not free....let's repeal the Bush tax cuts for those making $250,000 and above, get a bill on the oval office desk that includes a public option to increase competition, and make sure the physicians get paid to do more preventative care.

We can pay for this by cutting the pay of Senators and Congress people to represent us....after all it is called public service. All I see is a lot of overpaid people worrying how they are going to keep their jobs at the expense of those they are supposed to represent. Plus they get stellar healthcare and I've not heard anything volunteer to give their benefits back.

Now that would be leadership!

John T   August 25th, 2009 4:39 pm ET

We simply cannot afford to do the current plan. We need to prioritize and live within our means. I did not vote for President Obama but he could gain a ton of respect from the nation by showing leadership and scaling back on health reform. Make sure the uninsured are insured from a catastrophic event and help to limit lack of coverage on pre-exisiting conditions and open up the rest of the market so there is indeed true competition. But there is no need to make this more complex than this at this time. Lastly make sure this is deficit neutral (i.e. cut other programs etc. to pay for it, don't raise taxes). This is a common sense approach that the nation would rally around (left and right)!

Judy Belanger   August 25th, 2009 4:41 pm ET

I watched McCain to his town hall. Well someone should inform him about covering his mouth when he coughs. After blowing his nose after and after (his hands full of germs) hands his microphone over to a lady for a message. He needs a consult of Health Care. In fact he should not have been their. We are told when sick , stay home. He is spreading more than words.

RLWellman   August 25th, 2009 4:42 pm ET

The President needs to know he can't cram bills down the majority's throat. We live in a Democracy and the majority rules. He can't keep listening only to the liberal left.

Let's try for a bipartism health care reform bill that is best for all of us. Not just those who don't work, don't want to work, ain't going to do it. If the Government would help lower costs for those that can afford insurance, the savings would help pay for those who can't afford to buy insurance.

Are we going to have to hear it's all Bush's fault the whole time President Obamas in office?

Jasper   August 25th, 2009 4:48 pm ET

I couldn't disagree more with Gergen's analysis. Although dealing with deficits is hard, history has shown it's politically (see "Clinton, William, J.") feasible. It appears that the US needs to implement about 4 points of GDP worth of increased taxes - or spending cuts - or some combination of both, to reduce federal borrowing down to manageable levels once the economy resumes normal growth. Given the possibility that overzealous deficit trimming is dangerous in the early stages of a recovery (see "1937, recession of"), it's more prudent to wait until the economy is growing more robustly before such actions are undertaken.

Lack of comprehensive access to health care, though, is literally killing thousands of Americans each year (and no, you can't get treated for diabetes or heart disease or cancer at the ER - not unless you're at death's door). Given the EXTREME political difficulty of trying to enact substantive reform in this area (it's been about 70 years since a US president first tried to enact universal health care coverage), Obama is better off seizing the moment - before it's too late. Pessimistic prognostications notwithstanding, the reality is that Democrats have the votes and the mojo to pass a major healthcare bill if they want to. And the thing is, if they FAIL to pass major healthcare reform, they're going to get their clocks cleaned in the 2010 midterms.

Mary   August 25th, 2009 4:51 pm ET

I suggest President Obama immediately remove the $10 billion in subsidies for insurance/healthcare for his Union supporters in the healthcare bill.

They already have the best insurance in town.

Obama would have more credibility if he insisted that $10 billion payback be given to people without insurance , instead.

This is not Chicago, Mr. Gergen.

Deborah/Kansas City   August 25th, 2009 4:52 pm ET

Where were you all when George Bush passed Medicare D giving the pharmeceutical companies 6 billion in profit just to start. Then agreed that Medicare could not negotiate for cost based on numbers of unsured, and no limit on income to participate? I guess you don't mind paying for Warren Buffit's medication, but a sick unemployed person, never! What happened to "The war in Iraq will be paid for with the oil revenues it won't cost Americans", Didn't hear from all of you then. President Obama should remind people that there is a new budget every year and things are always in flux. There is no way they can predict exactly how much the deficit will be. Where are the predictions of how bad it will be if we don't fix healthcare? We will fix the deficit when the economy is strong again and the jobs are back. We must not wait to fix healthcare as it is bankrupting us now.

Freedom Fan   August 25th, 2009 4:54 pm ET

"Where were was your criticism of George W. Bush, sir, when he was doubling the national debt..."
-Mari

Ugh. Republicans everywhere were critical of Bush for not vetoing any spending legislation.

What good is your infantile finger-pointing; an what good is "free" health care after the country goes bankrupt and our currency becomes worthless?

As a country we are in a canoe headed for the falls, with a leader who is paddling furiously in the wrong direction.

Wake up people. Throw the leader overboard and paddle for the shore like your lives depend upon it. While you still are able.

Pamela T   August 25th, 2009 4:55 pm ET

There are already options available to improve the things that no one likes about heatlh insurance. But let's be very clear: there is NOTHING wrong with the quality of CARE in the United States. It is simply unnecessary, and a terribly wrong-headed approach, to insert the Federal government more and more into the private lives of its citizens, and nothing is more private than taking care of our health. I am more concerned about the overreaching of the government than I am about health insurance companies making 3-5% in profit. Profit is not evil, and there are jobs created in the health insurance and health care industries. Government jobs that will support the massive new bureaucracy will only sap the lifeblood from our economy.

Lam   August 25th, 2009 4:56 pm ET

Mari- Is there any problem that you don't blame on Bush? Your diatribe could have been summed up in one sentence. "Bush was bad, so we shouldn't criticize Obama about anything."

You ask Gergen what he would do. You obviously didn't read or don't know how. Go back and take a look at his last paragraph.

w six   August 25th, 2009 4:56 pm ET

The enormous deficits started with Democratic Party take over of
Congress in 2007 session:
2001.....128 Bil surplus
2002.....(158) Bil deficit
2003 ....(378) Bil deficit
2004.....(413) Bil deficit
2005.....(318) Bil deficit
2006.....(248) Bil deficit
2007.....(161) Bil deficit
2008.....(459) Bil deficit

Annie Kate   August 25th, 2009 4:56 pm ET

Gergen criticized Bush and his policies and actions many times over the past years on Iraq, the deficit, the cost of the war, as well as many other things. I don't see where anyone can say Gergen's criticism is one-sided.

Right now our nation is like a mother with an overflowing grocery cart – she has in it everything her family needs but she can't afford it all...so she starts to put back things, just keeping those which are the most important or the most critical. Just as the mother (or father) decide what to keep and what to postpone our country needs to do the same. If we cannot afford the health care plan that is being debated what about a smaller plan with less scope? It can always be enlarged later as we have the money. We may not get everything we want right away but holding down the debt is as important to us economically as many of the other programs we would like to do in the next few years.

BobDin   August 25th, 2009 4:57 pm ET

I believe the historic deficits have already damaged the country. Stagflation seems to be waiting around the corner. So far this administration has been a huge disappointment. From pirates to jobless rates, stimulus, Iran, North Korea, Etc. It's unbelievable how many miscalculations in just a few months. The Cash for Clunkers fowl up is unforgivable. Such a small and simple program with a ton of problems. It's unbelievable! How can anyone trust them on important subjects.

Jim   August 25th, 2009 4:57 pm ET

How about an "affordable" Federal tax – a maximum of 10% of income levied for all Federal taxes (income, social security, medicare)?

That is more than enough to handle the Federal duties authorized by the Constitution.

You are correct that Obama administration's current plans for multi-trillion dollar deficits as far as the eye can see will destroy the country.

Phil G   August 25th, 2009 4:57 pm ET

Health Care Reform will help bankrupt the country unless it is unbundled from its current status of being an employee benefit. Tax deductions for health insurance must be given to individuals, not corporations. Being allowed to cross state lines to purchase health insurance is also necessary.

Each of these obstructions were political decisions made by whom?

There is not enough fraud in the system to erase trillions of dollars of debt. The concept of what is acceptable medical care must be agreed upon before regulations are inacted. Obama is getting the cart before the horse.

Regarding the absolute numbers of the deficit–all of this would go away through the magic of inflation, but politically, inflation must never be the intended goal; it must always be an unsuspected byproduct.

Obama is a great rhetorician, but words are cheap, and some bad decisions last forever. He is either lying to us, blinded by political orthodoxy, or unwilling to learn. George W is a thing of the past and his non-punishable mistakes were huge, but we must not get into a pissing contest about blame.

kabookey   August 25th, 2009 4:59 pm ET

Mari, what are you smoking lady? Gergen has been bashing W since long before the election and has pushing Saint O even longer so spare us the "it's w's fault" line. W is not the one spending money like a mad man. Saint Has double downed the debt in only a couple month's. God help us if keeps spending like this for another 4 years.

***
Mari August 25th, 2009 3:16 pm ET

Dear Mr. Gergen,

You are one of the pundits that we respect at our house. However, I must take issue with your criticism of the deficit. Where were was your criticism of George W. Bush, sir, when he was doubling the national debt, lying about the reason to attack Iraq and hiding the actual cost of the Iraq war, which over 8 years is substantial! Where was your criticism of Bush when this Great Recession had started and Bush sat by doing nothing?

Our “great nation status” was already in tatters when Bush left office, Mr. Gergen, the illegal war, the doubling of the national debt in eight years and worst of all, torture!

Now, Obama is in charge, faced with insurmountable problems which he inherited from Bush! And you, criticize? What solution, Mr. Gergen do you offer? What would you do if you were president?! Its quite easy to criticize when you are not in charge.

Health care is not important unless you are without it! In one of the wealthiest nations on earth millions of our citizens are without healthcare, and millions more …… annually file bankruptcy because of the cost of healthcare!

The reasoning that we are in debt to China and therefore healthcare reform should be ‘tabled’ is wrong. By the way, we already have government run healthcare in Medicaid, Medicare and the Veteran’s healthcare system! Lastly, let me remind you, sir, we are already paying for the uninsured!

Timstigator   August 25th, 2009 4:59 pm ET

Did everyone notice how gingerly Mr. Gergen is in criticizing his Lordship? How delicately he points out that the ship is sinking and the captain better do something about it? Gergen's man-crush on Obama over the past year and a half on CNN has completely destroyed is previously respected reputation as someone with no skin in the game that provided smart analysis. It is no longer smart analysis. It's out-and-out promotion. Shame on you, Gergen. Your days of political analysis will be over as soon as Obama's first and only term is over. But something tells me you're starting to jump ship now. Probably so you can hook up with the next network for a job. Shameful. At least you show more transparency than the Obama regime.

citizen   August 25th, 2009 5:00 pm ET

The actions of the white house are the same actions they told us not to do.....get way over your head in debt and keep borrowing money you cant afford to pay back....

This guy needs to be stopped, saying "the last prez ran up the debt too" sounds like a little kid trying to talk his way out of being in trouble by saying the other kids did it too.

wko   August 25th, 2009 5:04 pm ET

You've sounded a warning Mr. Gergen (as have others). Question is: Is the president or anyone in the White House or Congress listening? The answer: NO!! They are demogogues and idealists. Unfortunately the republicans don't have the votes to stop them. The only hope is for the democrats to implode. This is an unmitigated disaster. Elections certainly do have consequences. Obama can't lead and Congress is hapless.

hudson duster   August 25th, 2009 5:05 pm ET

And yet, even if those problems came from a previous administration, they still have to be solved by this one with the financial resources that are really available, not those that should be available by force of moral outrage.
These numbers are real. All the pleading in the world will not create the wealth to solve them. And an inexperienced novice who changes stories to suit the day will certainly not solve them.

MikeS   August 25th, 2009 5:06 pm ET

It is good to hear people attacking moderates like Bush and liberals like Obama. Mari is right we need a true conservative to cut spending not just curb growth.

Seeryer   August 25th, 2009 5:10 pm ET

Gergen,
You are a status quoer. You want DC to be controlled by the elites that come to your cocktail parties and give you the "inside scoop". You are what is wrong with DC. All of you think of ways to not rock the boat. You are seizing on these numbers becasue you hope they will be cited as a reason not to rock the health care boat. It is easy for wealthy elitists like yourself to ponitificate on air about what is bad or good for bipartisanship in Washington. Bipartisanship did not get Obama elected but it will get him defeated. As a liberal supporter of Hillary who knew she would bust some heads, Obama has been a huge disappointment. I do not wish to vote for Hillary in 2012 but it will be with no enthusiam when I do vote for Obama. We hear all this BS about arm twisting from Rahm and "Chicago style politics" but the reality is Obama is beinding over backward to be liked by everyone. And in the process he is losing respect of those who look up to him and being played like a fiddle by those who despise him. The president needs to say to hell with the way things work in DC and truly bring change to the capital instead of letting the capital change him. And never listen to your advice.

gladRocks   August 25th, 2009 5:10 pm ET

Michael A, what free market are you talking about? The government already controls almost 50% of our healthcare market through medicare and medicaid...it also prohibits insurance companies from offering policies across state lines and it mandates all kinds of care be included in our policies...

and by what standards are we ranked 27th? The answer: is they include all kinds of things like homicide...I wonder if you think that means gun control should be a part of health care reform?

And what nations outrank us in surviving diseases like cancer, diabetes, heart disease? Answer: none...

So, let's double down on government control, increase the cost of health care from where it is now and live...an extra year.

Steve Zecola   August 25th, 2009 5:13 pm ET

Mari's comment is illustrative of the problem of getting things fixed in Washington. She is obviously smart and articulate. But, rather than addressing the existing situation, it's easier for her and politicians to attack the opposition.

Politicians deal with scores of issues everyday and therefore cannot be experts on all of them. They need to first understand the basic facts and issues of the problem before addressing them.

Gergen has done this with the deficit: $11T in existing debt, no assets, $9T in additional debt forecasted over the next 10 years, with interest payments alone costing taxpayers $900 M a year.

Moreover, this analysis does not cover the even larger liabilities from Medicare and Social Security – which are not reported because the federal government doesn't adhere to Generally Accepted Accounting Principles.

It's a dangerous statement to say that the United States is the richest country and base policies on that belief. As we saw with the recent financial crises, the house of cards can come down quickly. In fact, there is still over $1 T in bad housing debt on the banks' books which poses a financial risk to the economy.

To ignore the current reality is a prescription for failure. The top two priorities for the Administration in near-term should be: 1) fixing the banking industry and 2) getting the federal budget under control.

Tony P. Fremont, Ca.   August 25th, 2009 5:13 pm ET

Conversely, I believe it's because of the deficit that health care reform is entirely necessary. The Public option is the only reform in Obama's proposal capable of triggering a significant savings by decreasing health care costs in our future. Deficit of unpaid acquired debt is no different than inflation in a monopolized private health insurance market. Both facts still equate to decreasing our nation's assets and GDP. As once said, "desperate times call for deperate measures". Obama's proposal is the only idea offered in significantly taking the "dent" out of rising health care insurance costs and stabilizing the monopolized market.
Two-thirds of the health care reform costs are funded by cutting bureaucratic private health insurance waste in health care and the other one-third would be funded by those in the tax bracket earning over $300k per year. The folks in the same tax bracket on Wall Street who "sucked" our banks dry of money with the sale of fradulent CDO sub prime mortgage accounts to investors/victims. What could be more sweet?

Freedom Fan   August 25th, 2009 5:14 pm ET

"The enormous deficits started with Democratic Party take over of
Congress in 2007 session"
-w six

Droll. The national debt nearly doubled under Bush's 8 year term and is forecast to DOUBLE AGAIN

James Collins   August 25th, 2009 5:16 pm ET

Why don't you reporters ask Senator Mc Cain why he who has had Government Medical Care and Insurance for his entire live, from birth till today why the rest of us can not have what he has had these many years?? He was born in a government hospital, was treated by government doctors until he was in captivity in Viet Nam and then afterwards up to and including his government insurance as a Senator, His first wife and children were under the government treatment and insurance. (His second wife is rich and will buy her own hospital if she needs care.) But what about the rest of the population??? Why is it good for him but is not good for US???

ASK THE QUESTION ! ! !

Tony P. Fremont, Ca.   August 25th, 2009 5:20 pm ET

Conversely, I believe it's because of the deficit that health care reform is entirely necessary. The Public option is the only reform in Obama's proposal capable of triggering a significant savings by decreasing health care costs in our future. Deficit of unpaid acquired debt is no different than inflation of acquired debt for health bills in a monopolized private health insurance market. Both facts still equate to decreasing our nation's assets and GDP. As once said, "desperate times call for deperate measures". Obama's proposal is the only idea offered in significantly taking the "dent" out of rising health care insurance costs and stabilizing the monopolized market.
Two-thirds of the health care reform costs are funded by cutting bureaucratic private health insurance waste in health care and the other one-third would be funded by those in the tax bracket earning over $300k per year. The folks in the same tax bracket on Wall Street who "sucked" our banks dry of money with the sale of fradulent CDO sub prime mortgage accounts to investors/victims. What could be more sweet?

TheEnforcer   August 25th, 2009 5:21 pm ET

What's the matter?

Kool-ade wearing off?

Freedom Fan   August 25th, 2009 5:21 pm ET

(trying again)

The national debt nearly doubled during Bush's 8 year term, but is forecast to DOUBLE YET AGAIN under Obama ... in only 4 more years!

So while Bush took the deficit from 60% of GDP to 70% in 8 years; Obama will take it to 100% of GDP in only four more years!

Are we stark raving MAD? Why are we even talking about health care or cap-and-tax or any of the other job-killing, economy destroying, deficit expanding measures?

If you aren't terrified of the dire situation which lies just over the horizon by following Obama, then you must be a doddering idiot... or paul krugman.

rick   August 25th, 2009 5:21 pm ET

Mari,

I don't think David Gergon was particularly easy or particularly hard on George Bush, at least comparatively speaking. I think that President Bush has been almost universally condemned for his economics, as well as for the war in Iraq, etc. President Obama spends a fair amount of time stressing that he inherited a mess, and he did.

Mr. Gergon's point is that the situation, as it is, needs to be dealt with in a way that addresses the growing, and I mean growing, deficit and debt situation. I agree with him. The trouble is that politicians have a difficult time facing the problem squarely, as in they have trouble advocating a combination of reductions in federal spending and increases in federal revenue necessary to bring our books into the realm of reasonableness.

I'm thinking of running as an Independent for US Senate to just come out and say what needs to be done: give a schedule for raising the retirement age, remove the income limit on the retirement payroll tax, take a point off of the retirement payroll tax and put it on the medicare payroll tax, take out all of the increases planned in federal education spending, junk cap and trade and go with a simple $.50/gallon increase in the gasoline tax to finance subsidies for renewable energy sources, redirect $100 billion in unspent stimulus money to build 4 state of the art nuclear energy facililities, eventually producing a good amount of energy with almost no carbon footprint, and generating great revenue on the open market. Also, in addition to increasing the 33% and 35% tax brackets to 36% and 39,6% brackets, also add a point to the 25% and 28% brackets. And, yes, I agree with you, get the people in the gap health insurance, but pay for it with a combination of premiums paid by way of a payroll tax on the affected employers and employees, and dedicate some universal tax, such as a dedicated 0.5% additional payroll tax for universal health care, so that this worthwhile endeavor does not increase the deficit.

There's a lot of shared sacrifice there, but if the CBO scored it it would show deficits and debt being brought into solid shape, and that would help the overall economy tremendously.

Mike in MN   August 25th, 2009 5:22 pm ET

I agree with Gergen and polls show a majority of voters also do. The polls show a majority of voters rank reining in the deficit as a higher priotiry than health care reform.
The deficits threaten all of Americans. While the lack of health care is a very real problem for some Americans, it is somewhere below 20% of the population.
Unless the government can get the entitlement programs under control, creating a new one will only add to the mounting disaster.
And while Obama seems to be fond of blaming the deficits on Bush the fact is that who is at fault is not relevant in terms of fixing the problem. What is relevant is the Obama is now the President and he must provide the leadership needed to solve this problem. Bush is out of the picture. And a health care reform bill that comes with a trillion dollar plus price tag and a CBO esitmiate of adding 230 billion to the deficit is not the leadership a majority of voters is looking for.

Russ was a Californian   August 25th, 2009 5:32 pm ET

Raise taxes on everyone. No exceptions. All 345 million of them. Men, women, children, rich, poor, middle class, legal, illegal, resident, expatriot, old, young, married, single, working, retired.

Everyone must have some skin in the game.

Mart   August 25th, 2009 5:33 pm ET

Mr. Gergan is right on. Why don't we have healthcare like the French? What would it cost to start that up? It's certainly cheaper than anything here.

Jack Flannigan   August 25th, 2009 5:37 pm ET

Both parties have put this nation in debt. At this juncture finger pointing serves no purpose. It really did not matter which side of the TITANIC (right or left) the iceberg struck, the fact of the matter is – it sank. Go ahead argue all you like, in the mean time the ship is sinking and there are not enough life boats. Debt will sink this nation just as sure as an iceberg sank the TITANIC. Can we stop SPENDING money that we do not have and start to INVEST what little actual hard currency we have within this nation. If not, good bye America, it has been nice knowing you.

oeg   August 25th, 2009 5:46 pm ET

1. De-link your insurance from your job, so you have the freedom to change jobs.
2. Even up, via tax credits, the cost of insurance that is currently much higher for the individual because insurance companies subsidize big companies and governments in order to get their business.
3. Adopt nationally the Texas and California plans as regards medical torts. Once torts are equalized,
4. Allow people in any state to buy insurance from a company in any other state.

Seems to me all of this could be done via regulation, not legislation.

stephen   August 25th, 2009 5:56 pm ET

Tough for Gergen to cross the picket line like this. I'd sleep with one eye open if I were him. And I don't think Elbows Emmanuel is going to give him a painless death, either.

ScienceMan   August 25th, 2009 6:05 pm ET

I thought the CBO's ten yr projections were 7.1 trillion because they assumed all the Bush tax cuts would expire in 2011 as per the law. OMB's apparently keeps them for the folks under 250k. This is what the big difference is. Clearly this is too much over the long run, but I don't remember many of you people complaining in Feb when everybody thought the world economic house was on fire and something urgent needed to be done. Now that the fire seems to be under control and altho still smouldering, you all are complaining about the cost of the water to put it out. If reducing the long-term national debt has now become the country's first priority then so be it. There will have to be draconian cuts in the military budget (especially the 400 billiion in defense contracts), cost reductions in Medicare, medicaid, food stamps (will people starve), education, law enforcement, Agriculture subsidies, NASA,, Gov pensions, etc. This will result in even higher unemployment especially for white collar professionals, Perhaps living the high life on credit for the last couple of decades along with a trillion dollar war in the Iraq black hole, has finally caught up w us. I am not sure how Americans under 65 who have never experienced real austerity will adapt to it. Any politician is going to have a hard time and short shelve life. I was a Perot supporter back in 1992, when he was sounding the alarm about the national debt. Only about 15% of the people took him seriously. The Clinton tech bubble and the Bush real estate bubble and the useless trillion dollar war kept the illusion of prosperity going for about 16 yrs. But it seems Ross was right. Maybe it's time for a third party.

Tim Gibson   August 25th, 2009 6:05 pm ET

If walls could talk, wait they have, we print it, spend it, you loose it. Is that not what our administration continues to tell us daily.

Nothing short of a miracle will be to little to late at this point in our rushed and unprepared direct line of fire for Hurricane Debt and default of a nation.

The jitterbug is a dance our leadership knows much to well. Don't be lost in the fancy footwork.

aknarayan   August 25th, 2009 6:06 pm ET

"The fundamental problem is cost; we spend three times per capita what europe spends... and have $100T (that’s trillion) in unfunded liabilities for medicare in the out-years. And the ONLY solution is aggressive rationing…just like the europeans do..."

I think this post hits at the core issue here of cost.
About 80% of the government budget is composed of health spending (Medicare/Medicaid), social security and defense spending. Within about 8 years, Medicare will go broke and within a few decades health care spending will consume nearly 40% of our GDP.

Anyone who wants to talk seriously about reducing the deficit should A) discuss the types of cuts they are willing to stomach in one of those three programs or B) discuss the level of taxation we would require in order to get our deficits under control.

If the GOP wants to complain about Obama potentially cutting Medicare AND about skyrocketing deficits, then they should come up with serious proposals for how they will either raise taxes or cut spending (from one of the big three) in order to get our fiscal house in order. Otherwise they are engaging in sheer demagoguery.

On the other hand, President Obama is attempting to make cuts in Medicare by eliminating many of the excesses in the way we practice medicine. There is tremendous amount of variation in medical care that is not evidenced based. Moreover coordination of care amongst providers can help to eliminate excessive testing/procedures that drive up costs. These are measures that can save billions of dollars without rationing care to anyone.

Tom   August 25th, 2009 6:08 pm ET

Then he might have to raise taxes a little bit to pay for this.

Considering that our European nations with their "crushing burdens of socialist taxation," stuck firmly on their "roads to serfdom," seem to be "doing a lot better than we are in a lot of fields," I have no problem with this.

Damian Palmares   August 25th, 2009 6:10 pm ET

It just goes to prove that the current projections for their proposed public option will run two or three times higher than what they are projecting. The CBO already gave a higher cost projection than the administration proposed, but if you look back at Medicare and what the original projected costs of that program were and where they actually ended up, it's pretty scary. Where will the difference come from? Higher taxes, along with the expiration of Bush's tax cuts, then add on taxes for cap and trade which hopefully will be denied and this administration is only 6 months in.

Who in their right mind would want a single payer health system ran by our government? We can't even deliver the mail without running in the red. Where do you think the salaries for doctors will go if that ever happened and what kind of quality would result from that? God help us all.

Silqworm   August 25th, 2009 6:16 pm ET

We should all drop out of consumer society and start bartering in silver coin. This will cause the dollar to collapse faster, and thus we will liberate ourselves of all of the national debt and future taxes. The Chinese, Japanese, Russians, Germans, and the rest will be paid back in gold or silver over time according to treaty. The Counties will establish their own comprehensive general welfare policies independent of State or Federal interference. The Federal Government should go back to it's proper 1% level. The System as such was already bankrupt in 1789 when it was ginned up. We as individuals need to recognize that we were all born into a eugenicist Monopoly bankers game; isn't it obvious to everyone now that Morgan is the tyrant, we are the slaves, and we're not going to play it anymore, David.

Jay Dubs   August 25th, 2009 6:28 pm ET

Mr. Gergen, you are right to worry about the deficit. You wrong, however, to look at health care reform as a separate problem. The federal deficit is being driven by rising health care costs (the expenses of Medicare and Medicaid are growing at a rate far faster than any other government programs) – costs that are rising across the board. Health reform MUST be passed in order for these costs to be controlled and for our deficit to be controlled!

That's the irony of deficit hawks fighting health reform... they are fighting the very means by which the deficit will eventually be controlled (if it is ever to be controlled).

steve   August 25th, 2009 6:36 pm ET

Great article by Mr. Gergen, really appreciate it.

curt King   August 25th, 2009 6:38 pm ET

Let's stop blaming others (Bush or anyone else)
The President and his supporters including CNN and Mr Gergen had not only supported but generously promoted candidate Obama and neglected to objectively report and protect american people. To Mr. Gergen's credit, he has decided now to report instead of promote his candidate of 2008.
President Obama and his supporters knew of the global challenges, they all vowed that they are the ones most qualifed to fix the country ad world's problems. Instead, they only carried out what they believed the narrow window of opportunity to install extreme ideologies and socal agendas at the expense and compromise of the country and all the people. It is so sad that people is willing to sacrifice the country for their own selfish legacy and ideologies. Now they fail to deliver, they have gone back to blame others. Shame on them! Be a man ! Otherwise, stop whining and deal with the problem or get out! They want to have a cake and eat it ,too. I have buyer's remorse about my vote last Novemeber.

Black Saint   August 25th, 2009 6:40 pm ET

Please, People Obama promised La Raza he would upgrade the free health care the Invading horde of |Illegal Aliens is currently getting. They do not want to wait in ER for their free health care.

steve   August 25th, 2009 6:41 pm ET

Great article by Mr. Gergen, really appreciate it.
OH! You're my new favorite blogger fyi

Diane C   August 25th, 2009 6:44 pm ET

Pamela T
Exactly right. Anyone who needs medical attention in this country has access by walking into an ER. The majority of the hospitals are clean and staffed with caring professionals. Many healthcare professionals give their time freely to help the poor–and even travel to other countries to help there.

When you take away the potential for a profit by inserting the govt you also remove the possibility for innovation. Profit isn't evil.

Luke   August 25th, 2009 7:16 pm ET

David Gergen,
No doubt, you are a great political mind. No doubt. But seriously, few if any of the financial implications of the republicans destructive rein during the last 8 years were NOT known just 3-6 months ago. It was known that the deficit was going to rise significantly. This was known. But now here we are in a hailstorm of "reform" and all the wee weedness that comes with it. There are aggressive messaging efforts to kill reform from major organizations and deep pocketed interests. And there is a targeted republican messaging effort to kill this – albeit indirectly. Thats where we are now. But I totally disagree with your premise. This country needs to make some positive changes to begin to curtail future deficits. One is lowering health care costs – on businesses most importantly. The other is setting up a green energy economy and dealing with the undeniable effects of global warming and the effects it will have in the future. An opportunity exists to turn things around. And by many measures Obama has done a great job so far – LOOK WHAT HE'S INHERITED!. But he's not done and this country NEEDS this more than you're admitting. In short, its easy to kick Obama and the dems when they're down in the trenches fighting for this country against a multitude of interests. But you know better than to side with the same people who brought us the iraq war and that lionshare of our fiscal problems. Of all people, you shouldn't have taken the bait. Stay strong with Obama and the Dems. America and you will be glad you did.

Sincerely,
A former Republican

Cindy Merrill   August 25th, 2009 7:21 pm ET

The"Stimulus" gave seniors a one time bonus of $250. That's approx. $5 a week for a year. Compare that to the $13 a week added to the average paycheck. Now throw in the projected cuts in Medicare, the threat ( either imagined or at least partially true), of rationing healthcare for the elderly: Guess what? Seniors think they're now considered second class citizens. Gosh! WHERE did they get that idea from? The government. When a social worker tells a 67 year old diabetic that he can't get his SNAP food credit increased ( even though dietic food costs 35% more on average), you know something is terribly wrong:
My husband and I just got turned down for a SNAP Food credit increase ( He's diabetic and we live on SSI). Which would you prefer: An extra $100 for dietic food, or $180,000 a month for Hospital costs if or when John has a Diabetic blackout or slips into a Coma? You, the taxpayers, already pay for his SSI and VA, so its your decision.

Independent Texan   August 25th, 2009 7:33 pm ET

The ugly truth is this, and you will not hear it from either party: we have overleveraged ourselves with these unfunded entitlements; so much so that there is NO HOPE of meeting those obligations while remaining fiscally solvent. So here are our choices, Americans: 1) cut entitlement benefits, sharply, and NOW; 2) jack up our already high tax burden in the midst of the worst recession since the Great Depression; 3) stand by and watch the country's credit rating go down the tubes.

My money is on #3 because the entrenched Democrat system and its fawning leftist media supporters will not permit #1, and the people who do the work and pay the taxes have had enough and will not abide by #2.

So, what do we have to look forward to? At some point in the near future, the world will shift from the unsound dollar as a base currency to a basket of currencies, which will result in an immediate over supply of dollars on world markets. When supply greatly exceeds demand, the value goes down, and in this case we are talking about the dollar. When the dollar plummets, interest rates skyrocket, and the value of dollar denominated investments (e.g. our retirement accounts) tank.

When the dollar plummets, inflation rears its ugly head. If we think the cost of living is high now, just wait until five years from now. It's going to be unbearable.

We can't afford what entitlements we have now, let alone what Obama wants to pile on top of it.

Yes, health care is being rationed now, partly by insurance companies and what they can successfully avoid paying, and partly by the cold cruel market - rich people get the best care, poor people do not. Is it "fair"? I guess not, if your sense of fairness is a Utopian World in which all is made well by the all-powerful government.

To discard the current system of rationing (largely driven by market forces) and replace it with a new system of rationing run by government bureaucrats who decide which lives are worthy saving and which are not, is a matter of political choice I suppose.

It boils down to whether we trust market solutions or governmental solutions. It's philosophical.

But remember, it's the governmental solutions (unfunded Medicare, Medicaid, and Social Security) that are bankrupting the nation. It's absolutely NUTS to be creating more entitlements while we are bailing water from the existing ones.

A pox on both major parties, who have put us in this position. VOTE LIBERTARIAN.

DTR   August 25th, 2009 7:34 pm ET

I admire you as an articulate, thoughtful contributor to the national conversation. However, we are picking at the edges of the most sensible solution, national healthcare and everyone gets taxed for it. These other solutions will cost more $'s in the end and the outcomes will likely not be any better than we currently experience.

Like many Americans I have healthcare thru employment although I pay 1/2 the premium. Were I to lose my job or retire prior to Medicare eligibility I could not afford the premium. The HMO already makes treatment decisions based on researched outcomes ( which is the correct way to describe the sound bite "rationing"). Sometimes I don't like that but I accept that the decisions are rational. I am weary of this country's inability to look at the greater good and make some sacrifice to that end.

The deficit? Well I vote to get out of unnecessary wars and use the money to care for our citizenry. It is unconscionable to have people die and/or lose everything they have worked for because they got sick.

I look forward to your comments nightly Mr Gergen.

Jim   August 25th, 2009 7:43 pm ET

I didn't think Gergen would ever criticize Obama-as he is always kissing up to him and attacking his former GOP friends. This new 1.5 trillion dollar deficit that BO now believes we will have next year will have long lasting–very negative consequences...but this is what happens when you put a community organizer in a position way over his head!

Mark from Saint Louis   August 25th, 2009 7:44 pm ET

It's not a right or left issue, it's a right or wrong issue.

How is this huge deficit acceptable???? It was only $250 billion under Bush , which was bad but this is all a Democrat fiasco now. 9 Trillion? Come on people.

Calie Stephens   August 25th, 2009 7:47 pm ET

"Or he can come to grips with these grim forecasts and present to the nation a credible, comprehensive plan for reining in long-term deficits before Congress acts on health reform. The second path demands more courage – and is also the one of real leadership."

Gergen, you favor the above approach which you say requires courage and leadership. Why the heck did you write the column, knowing that Obama has no courage and is certainly not a leader.

Gergen, you lost your credibility and objectivity years ago. You used to be someone that I respected.

Calie Stephens
Dallas, TX

Rodd   August 25th, 2009 8:06 pm ET

Thank-you Mr. Gergen!!! Finally someone in the news is beginning to realize what is happening in our government as well as our country. Every time someone criticizes this president...all I hear is what Bush did and what Bush did not do! Bush was NO president...FACT! Obama is NO president!!! Face it people... We have NOT had a president since Bill Clinton!!! The only change which has come to Washington is a different administration who is continuing with more of the same from the previouis 8 year disaster. I am proud that I do not have to look at my voter registration card to determine who to vote for. This independent is jumping from the sinking Obama ship!!! Bill Clinton said it best, "The era of big government is over!" That has certainly gone down the pipes! Ronald Reagan said it beautifully, "Government is not the solution to our problems...Government is the problem!!! Only in America could Pelosi, Reid, and Obama convince more than half the people of this country that we need to pay more taxes to control the weather! The congress is not God, and Obama certainly is not the Messiah!!!

Jan from Mississippi   August 25th, 2009 8:13 pm ET

There are 91,325 US citizens age 50 years or older

Give each of them $2 Million dollars

Requirements:

Each must buy a house ( Hence, housing market solved!)

Each must buy a new car (Hence, automobile crisis averted)

Each must choose a health care "menu" choice plan and 50% MUST be for prevention! – each person pays for 10 years of the "premium" (Hence, health care is solved, Medicare drain is averted)

This would have cost 180+million.... MUCH less than the current spending and not only that, but the "prudent" would have many thousands left over to invest – (hence the financial institutions are RESTORED!)

Hallellujah

I am 59, worked all my life and have 4 grown boys who each have families.... what a concept!

Earl   August 25th, 2009 8:13 pm ET

Mr. Gergan is correct. It is completely irresponsible to move forward on socialized health care now. We can not fight two wars, clean greenhouse gases, and all the other spending programs Obama has signed AND give free health care to 47 million people! Obama is not a cool customer. He is bull-headed to go forward with socialized health care and bankrupt America.

Rootbeer Brown   August 25th, 2009 8:15 pm ET

Jefe Obama is nothing but a handmaiden to a cabal of self serving, duplicitous, breathtakingly stupid and incompetent oligarchs.
He is a disgrace of unmitigated proportions and his legacy will be limited to the number of s**t stains he leaves on the White House carpets.

Dave in Arizona   August 25th, 2009 8:23 pm ET

The state of the economy and these new projections are unfortunate and perhaps some of the reform should be postponed, but it needs to be done eventually.

Providing a measure of medical care to all Americans is as vital - if not more so - than providing basic education, fire protection, police protection, etc. We should all be able to pay extra for advanced medical care, private schools, fire extinguishers, and alarm systems; but a guaranteed minimum of all of those is needed for those who cannot afford it for themselves.

Cincinnati RIck   August 25th, 2009 8:23 pm ET

Gergen: "Or he can come to grips with these grim forecasts and present to the nation a credible, comprehensive plan for reining in long-term deficits before Congress acts on health reform. The second path demands more courage – and is also the one of real leadership."

Reply: Of course that's the solution. But it requires more than mere leadership. If, against all experience with governmental entities, one believes that Obama can deliver a workable government management of health care, turning water into wine and feeding the multitudes with a few loaves and fishes are simply cheap parlor tricks. Jesus move over...we have the real Messiah here.

Timstigator   August 25th, 2009 8:26 pm ET

Obama has been a huge disappointment. I do not wish to vote for Hillary in 2012 but it will be with no enthusiam when I do vote for Obama.

Good Lord. The only person I know who will vote again for Obama. I didn't know one existed.

A.M. Deist   August 25th, 2009 8:51 pm ET

Until America gets captialism out of the health care system, costs will continue to spiral, even with millions more losing their access to health care.

Harold R.Chorney   August 25th, 2009 9:00 pm ET

Dismayed to see that CNN is contributing to deficit hysteria by the way it is presenting the deficit and debt data.
I am a professional economist and a professor of political economy at Concordia University in Montreal where I teach public policy and political economy. I have published extensively on deficits and debt and Keynesian economics.

The only sensible way to discuss deficits and debt is to always compare them to the underlying GDP. So for example 11 trillion dollars of debt in comparison to an economy of 14 trillion dollars is about 78 %, a percentage well below the debt to GDP ratio during the second world war when the ratio exceeded 110 per cent. The deficit of 1.5 trillion dollars is as a percentage of the GDP about 10.7 %. During the second world war this ratio exceeded 23 %.

So there is no reason to panic about the size of the American deficit. As the economy improves so too will government revenues from taxes and government expenditures on stimulus and income support for the unemployed will be reduced ensuring that , so long as interest rates are kept low, the ratio of debt to GDP will stabilize and even drop as the GDP grows and unemployment falls. Remember also that one should subtract from the gross debt the size of government assets in order to arrive at a smaller but more realistic accounting of the net debt.a large chunk of these deficits are financed from American savers and they help transfer passive savings that are sitting on the sidelines during a recession into productive investments that create jobs.

Deficit finance facilitates stimulus which as we shall see in the coming months promotes recovery from the severe economic downturn that the financial crisis threatened. In the end the economy will recover, infrastructure will be improved and prosperity will return and the debt to GDP ratio fall to less frightening levels.

Harold R. Chorney
further info at haroldchorneypoliticaleconomist.piczo.com

Mike, Syracuse, NY   August 25th, 2009 9:02 pm ET

It took 233 years to get our debt where it was when Obama took office, and he will double it in the next 10 years. He needs a smack upside the head. He's out of control and the only fitting punishment is raise taxes on everyone who voted for him. Oops, can't do that, half his supporters pay no tax, they are just leaches on society.

Rudy   August 25th, 2009 9:07 pm ET

David! The president can do it. First, he has to do a one payer system. You do that by declaring that it is illegal to charge a patient unless and only by payment from the system. The system creates tariffs for each service provided and keeps a log of how many patients the Doctor sees daily. No attendance to specialist unless there is a refaral from the general practioner. Within the system provide the Doctors insurance coverage, free, with tenacious in house counsel who defends any unreasonable claim to the teeth. Have a limit of pain and suffering up to $100,000 being the highest amount on the scale. Of course future loses are excluded from this limit. Abolish punitive damages fr medical law suits unless fraud is claimed and proved. That is the Canandian way and everybody including the Doctors are now content and happy. All employees pay 3% of their wages for the coverage and the employer another 2%. That is how the Workers Compensation Board operates. and it is self financed.

Maureen - NC   August 25th, 2009 9:08 pm ET

This is so frustrating to me. During the campaign, CNN fully threw their support behind Obama and did not provide fair coverage. The POTUS said he was going to fundamentally change America!! What exactly did you all think he was talking about?

N. Manetavat   August 25th, 2009 9:09 pm ET

The Govt. has deficits because the peoples do not pay enough taxes.
When the Govt. borrows and spends it will benifit the peoples. It will make peoples rich because when the Govt. spends money, money will go back to American peoples irectly or indirectly. The rich peoples get more benifits from Govt. spending because they have money to invest. In 1985 we had 13 billionaires but now we have over 1000. The money did not come from other country because we have trade deficits, then the money has to come from Govt. In 2001 we had Fed. surplus because Americans paid more taxes.
For healthcare, ask yourself what is the function fo private health insurance. Insurance acks as a middle man, collect your premiums, set aside for the profit, pays the provider less and less. One CEO's salary and benifit the doctor has to work a hundred years.

rm   August 25th, 2009 9:11 pm ET

The debt projection has increased this year mainly because last year, in the throes of the financial crisis, it was impossible to correctly estimate the shortfall in revenues and the damage to the economy.

Though there seem to be many on CNNs boards who rant and rave about how Obama caused this, most people know on whose watch this crisis happened.

To RNC hacks here: You can fool all the people some of the time and some of the people all the time. Yeah, some of the people – the bible-thumping 30% and your corporate buddies – your base.

But, your fooling days are over. People KNOW who caused this – and that man is quite silent since he left the white house, ain't he?

Jim from Denver   August 25th, 2009 9:13 pm ET

I agree that the debt makes this harder, but I don't think it should stop it so long as it is paid for with new revenue. I would rather see us reduce our deficits by cutting some of our military spending, particularly the war in Iraq.

mark   August 25th, 2009 9:19 pm ET

Gergin- I bet you have a hard time deciding what type a head of lettuce you will choose from a grocery store- you are the true middle/moderate- form a committee type of guy- with people like you America would never go forward

Caral   August 25th, 2009 9:19 pm ET

The healthcare system in Britain is one of the largest employers in the world. Heavy on administration, its costs are staggering. The Canadian system is "imploding" according to its own administration, due to the incredibly high costs. Economics 101 will tell you that if there is no accountability in the form of a profit motive found through a free market system, there is no reason to control costs and no true way to do that. Want to REALLY reform healthcare in a way that would benefit every American? Tort reform is a good place to start, supporting clinics run by doctors that are currently working well – such as the Cleveland clinic, such as UCLA. Think carefully about what Pres. Obama said – true, the Post Office has not eliminated Fed Ex and UPS. In fact, the gov't supported Post Office is the one that can never make money, has the worst customer satisfaction, and the longest lines. The free market competitors can't afford any of that.

Rudy   August 25th, 2009 9:20 pm ET

The reply offered by Professor Chorney is mind bogling. The world has changed. The other contries have caught up with US, at least in the living standards. It is not the case where after War Wold II only America left standing. A deficit of 74% of the GNP is worst than that of England, Germany or Japan. As for France the socialist, numbers do not describe their pain due to their deficit. Every one there works for the Government. The Prof should know that such deficit would further lower the dollar and therefore our wages would buy much less. There will be no room for savings. China would ultimately buy all the good Amercan assets left. Imagine having this professor as your econimist

mark   August 25th, 2009 9:22 pm ET

what has the government every done efficient and under projected cost? Nothing!! Tell me 1 thing they have ever done that became efficient!!!!!!!!!!!!!!!

Mary Ann   August 25th, 2009 9:27 pm ET

Sadly, we cannot afford to redesign our health care system by creating a new government program. President Obama needs to recognize that his primary responsibility must be to trim the federal deficit and debt. The only health care actions that should be taken are those where there is a consensus that it will lead to reduced deficits. Such a streamlining will improve the health care system if we can bring health care costs down and thereby make it more accessible to the uninsured. This country made a huge mistake not dealing with health care in 1993 and now we must pay the price. But all is not so negative -- we have come a long way in understanding what the problem is so if we pull together we can improve our health care system and bring the deficit down. We just have to stop emphasizing "comprehensive reform" and start focusing on incremental reform. I don't know if Obama has this leadership capacity in him– I pray that he does. Thanks for your article.

Joe   August 25th, 2009 9:28 pm ET

I love these supposed Obama-voters now regretful over their youthful indescresion. It sounds more like a GOP PR campaign. You REALLY want to fix underfunded programs? Fine, raise taxes. No? Then you're the problem.

Jay from Jersey   August 25th, 2009 9:31 pm ET

Prof. Gergen, you say it like it is, in plain talk. So why hasn't President Obama woken up to the realities and implications of this massive deficit?

I'm an independent who voted for President Obama, but am fast becoming disenchanted with his poor leadership.

Jeanne, Elkhart, IN   August 25th, 2009 9:32 pm ET

It only stands to reason that our government wants to take over health care too. How many of us really believe that the govt. can do a better job than the private sector. We all know that the private sector will not exist 10 – 15 years from now. Sure, we need reform, but not including the government. Everything they touch, loses money. When will we wake up, and ask these jerks in government for accountability? How can President Obama appoint the green czar knowing that this guy spent time in prison and became a Communist while in prison. Why doesn't anybody in the House or Senate ask any questions or care about these radical choices? Who is actually writing these proposed bills? How can Obama be so far off on our national debt? We made a big mistake on choices this past election.

Henry Miller, Cary, NC   August 25th, 2009 9:36 pm ET

As far as I'm concerned, the Obama administration, and the present Congress, are being just little shy of treasonously irresponsible.

Dave Nolan   August 25th, 2009 9:39 pm ET

In the end the grandest of all political plans, government run health care, may die because all of the plans and promises made before turn out to false. The growing avalanche of deficits will begin to undermine support of centrist, moderate Democrats, and will gradually move to the left. In the end, only the most liberal and reckless of our representatives will try to burden us with this beast under the guise of helping us.

Somewhere, someday an historian will look back on this Autumn as the time we slowed our declined (even if just momentarily) or as the time we turned on the boosters to our financial doom

Harold R.Chorney   August 25th, 2009 9:42 pm ET

Rudy,the debt to the GDP is 78% not the deficit . The deficit to the GDP is just under 11 %. you have to distinguish between the annual deficit or surplus and the accumulation of deficits and surpluses over time which amounts to the debt. you also have to understand that a large proportion of ther debt is financed by American savers and taxpayers who correctly consider the bonds and treasury bills as assets.. A much smaller proportion is financed by foreign savers who buy the debt and sell the debt on the money markets. Some of the debt is held that is bought and kept by a wide range of government departments and pension funds.
with respect to Japan it has a much higher debt to GDP ratio than the U.S. Great Britain and France and Germany have ratios that are not that far from those of the U.S.. Americans only import a small percentage of their GDP So if in fact as opposed to in theory the American dollar falls substantially in value with respect to trading partners' currencies because of the rise in indebtedness, something which I suspect will not happen or if it does will reverse as the American economy begins to grow again and unemployment begins to drop the hardship imposed will not be what you are suggesting. China will probably strengthen as an economy but with a cheaper dollar and trade American exporters ought to benefit unless China imposes unfair trade restrictions on imported goods.
Finally Rudy don't worry you can always switch classes and find a more congenial prof.

Jeanne, Elkhart, IN   August 25th, 2009 9:46 pm ET

Ultimately, if we don't change our spending habits, we'll be called Chinamerica, a country owned and operated by China.

David   August 25th, 2009 9:46 pm ET

Raise taxes? If we passed a law taxing every dollar of income above $250,000 (a 100% top tax rate), we would still be running a deficit. Can you say massive middle class tax increase? What about Obama's "no new taxes on anybody making less that $250,000" pledge. Can you say deep doo doo?

Joe from Pennsylvania   August 25th, 2009 9:57 pm ET

I'm a registered independent who voted for Obama. I voted for Obama because he sounded as if he would be more fiscally conservative than McCain. That, and given the fact that the Republicans weren't fiscally responsible when they had power, is what led to my vote. My opinion at the time was that nobody could be worse in regard to fiscal irresponsibility than Bush.

So far, it appears I made a huge mistake in my evaluation of Obama. He has literally outdone Bush's fiscal irresponsibility and is showing no signs of letting up. He's going to drive our already damaged country into the ground if he does wake up and start getting our financial house in order.

The ugly truth is that America cannot afford any kind of reform. We're broke. Our government cannot balance the budget and, therefore, cannot pay down the debt.

The president needs to do the following:
1) create a budget surplus by both cutting spending and raising taxes and put a lock on that surplus to pay down the debt. He needs to do this right now.
2) create incentives for the private sector to grow the economy and increase the GDP
3) establish term limits right now for Congress. Part of what has led to America's demise is selfish politicians who are more concerned with their re-election than what's best for this country.

It just absolutely amazes me how these politicians in Washington can allow our country to be so financially mismanaged. It's just inexcusable.

Michael Amoroso   August 25th, 2009 9:57 pm ET

Lets put the politics aside here folks.

Look at where the money is going. Let us wake up.

#1 Women do not need to be hospitalized for a birth in a $30,000
suite with 150 doctors and nurses around the clock. Normal births
should be conducted in adjunct facilities with access to emergency
care or C section surgery ,if needed, but at a reasonable fixed cost.

TRUE FACT : My vasectomy was denied by my insurace company
at a cost of $1,200. However, my wife is eligable to have as many
$30,000 hospital visits as she wants for as many kids as we can
produce. Lets do the math here folks. Big savings for the country no?

#2 Simple procedures like taking off a fatty deposit from your arm
used to be an in office procedure costing maybe $150 in 1980. Today
the same procedure costs nearly $8000 in most outpatient hospital
facilities. I know this because I have the old bills and the new ones.
#3. Simply make a law which makes it illegal to take away a family
home in the event of unpaid medical bills. This is really the most
feared problem by the public anyway. Just nip it in the bud without
overhauling the whole system.

ray   August 25th, 2009 9:59 pm ET

The deficit adjustment prediction wasn't the only scary economic number the Administration revealed today – our GNP will be -2.5% for the year and predicted unemployment for next year will be 1-2% higher. So much for "growing our way out of these deficits" and "green shoots." A return to normal consumer spending is likely 2-3 years away. In view of such developments, Obamacare is politically dead in the water - and unless the Administration truly doesn't give a care about America's future as a economic unit, they will end their pursuit of it.

It's very striking that Gergen – who drank deeply of the KoolAid - now thinks abandoning the health care initiative would signal "courage" and "leadership." A very bad sign. But why not take Gergen's advice if you are President Obama and move on to the next policy initiatives promised to his base - cap and trade, card check, and immigration reform, i.e. amnesty. Ooops, never mind! Icebergs dead ahead . . . . lots and lots of them. 2010 isn't going to be pretty.

Michael   August 25th, 2009 10:01 pm ET

Gergen has it right. Obama's attempt to use the moral big stick in promoting his health care 'reform' failed when his figures were spurious. The 47 million he claimed 'cannot get health care' included 10 million illegals, 18 million children covered under other government programs, and 12 million who make over $50,000 but choose to self insure. The remaining 10 million go to emergency rooms where we already pay for their health care. When the moral approach failed, Obama tried convincing us his proposal would save us money and help get the economy back on course, but the GAO took one look and told us the truth; Obama's proposal will cost trillions. Strike two! Then Obama tried the political gambit, trying to pass his 'reform' without the Republicans but the Blue Dog Democrats spit in his soup! Strike three. Surely Obama has seen enough to understand that he needs to address our deficit before trying to push health care reform again. Thanks, Gergen.

Michelle   August 25th, 2009 10:02 pm ET

If we do NOT pass health care reform this year then we will NOT address the number one cause of HIGH DEFICITS which is health care costs particularly medicare.

Gergen got this wrong. Health care reform that addresses tackling high costs is the BEST thing that Obama could do to tame the deficits in the long run.

Instead of health care reform focusing on universality, health care reform should focus on lowering health care costs and consumer protections.

dee   August 25th, 2009 10:06 pm ET

DITTO THIS!

Dear Mr. Gergen,

You are one of the pundits that we respect at our house. However, I must take issue with your criticism of the deficit. Where were was your criticism of George W. Bush, sir, when he was doubling the national debt, lying about the reason to attack Iraq and hiding the actual cost of the Iraq war, which over 8 years is substantial! Where was your criticism of Bush when this Great Recession had started and Bush sat by doing nothing?

Our “great nation status” was already in tatters when Bush left office, Mr. Gergen, the illegal war, the doubling of the national debt in eight years and worst of all, torture!

Now, Obama is in charge, faced with insurmountable problems which he inherited from Bush! And you, criticize? What solution, Mr. Gergen do you offer? What would you do if you were president?! Its quite easy to criticize when you are not in charge.

Health care is not important unless you are without it! In one of the wealthiest nations on earth millions of our citizens are without healthcare, and millions more …… annually file bankruptcy because of the cost of healthcare!

The reasoning that we are in debt to China and therefore healthcare reform should be ‘tabled’ is wrong. By the way, we already have government run healthcare in Medicaid, Medicare and the Veteran’s healthcare system! Lastly, let me remind you, sir, we are already paying for the uninsured!

ksm2000   August 25th, 2009 10:07 pm ET

Michael A said: "What continually amazes me is how the people who that say America is the greatest nation on earth and can’t be defeated are the sme ones who instantly say we can’t have universal healthcare."

- Hmm. Seems that ALL politicians say we are the greatest country on earth. Maybe Obama is the first exception, as he runs from country to country apologizing for his revised history.

"WE are the only industrialized nation without universal healthcare;"

- No we aren't you clown. But even if that were true, it would be irrelevant, as almost all new drugs and treatments originate here – the only place anyone can make a profit.

"We spend almost twice as much on healthcare as any other nation yet are rated 27th. Doesn’t look like the free market competition has done us much good ."

- Typical liberal who can't differentiate between apple and orange. We are 27th in LIFE EXPECTANCY, not in "healthcare". In halthcare we are #1 – read that again – #1. Whether heart disease, breast cancer, colon cancer, or other major treatment, the USA has the highest success rate and the longest post-treatment lifespan. Our LIFESPAN is lower because we have drug gangs shooting young people and because we eat like pigs. Take out the gang killings and drug ODs and we are #1 in life expectancy too.

Kevin from Mass.   August 25th, 2009 10:07 pm ET

David, I agree with you. But there may be a third option - requiring an even larger dose of leadership...and more than a little audacity.

Recognizing the need for universal ACCESS to health care, the need to cover catastrophic and other large medical expenses, the need to encourage preventive care for all, and the need to improve efficiency of administration, figure out how much to raise taxes in order to pay for these changes for everyone and sign everyone up for private (not government-run) health insurance that covers each person under this new plan. (Everyone can choose an insurer but will default to a pre-chosen one if silent.)

Yes, the tax increase will be hefty, but we're all paying it now, in some way or another. (Low-income people not paying taxes and getting free, walk-in health care now also would get it under this scenario.) Just sell America - and Congress - on the idea that we're just shifting the payment structure and, yes, forcing everyone into a health plan for the long-term good.

The change can aim to be revenue-neutral. Employers will be freed from the shackles of increasing costs, too. Outsourcing will be curbed. Lots of upside. (Just do something to get primary-care physicians interested in the "specialty" again.)

Frank222   August 25th, 2009 10:14 pm ET

It stands to reason, if the fed govt is temporarily bailing out the country then the deficit is going to go up...there are wolves in the hen house of corporate america. The wave length will increase until intability topples the empire...same old same old.

Alice   August 25th, 2009 10:16 pm ET

Why should health care increase the deficit if other countries with models of health care similar to those that we are considering pay much less than we do and live longer, healthier lives? We seem to have lost sight of the fact that by having government take over parts of the health care system, it will relieve that burden from corporations and make them better able to compete globally. Our businesses have a hard time competing partly because they have to pay for health care while foreign competition does not.

As a person who has dealt with family members with serious type 1 diabetes, brain cancer and stage 3 colon cancer this year, I can tell you that the American system is badly broken. Fortunately, the person with colon cancer lives in Canada. He has been able to get multiple opinions on his treatments, paperwork has been minimal, he has had his choice of doctors and specialists, and it has cost almost nothing. This situation was quite different for my relatives in the US who have lived with on-going fear that their insurance would be canceled, co-pays and complicated paperwork.

We do already ration health care in the country based on ability to pay. Is this really what we think we want?

Roland-St George, UT   August 25th, 2009 10:21 pm ET

One word...DISGUSTED.

Nam   August 25th, 2009 10:27 pm ET

I laugh out loud when someone says "we are the richest greatest nation on earth with millions without insurance." Richest nation on earth doesn't go borrow 9 trillion. Richest nation on earth doesn't rely on a developing country like China to finance its debt. Richest nation on earth doesn't pay 900 billion a year to interest and shall not be worried so much that the debtor doesn't lend more.

It's the debt, stupid.

BHO - fan   August 25th, 2009 10:28 pm ET

When BUSH was elected HE wasn't FACED with the PROBLEMS that OBAMA HAS. It's easy to get into TROUBLE than to get OUT of it. . . The ECONOMY CRASHED under BUSHE'S watch NOT Obama's. . . And YES Obama knew what he was getting into by running for Pres. . . BUT, I'm sure HE did'nt think the RETHUGS was going to let the COUNTRY sink and wish HE would FAIL just so they can get back into POWER.

I GUESS HE KNOW NOW!

N. Manetavat   August 25th, 2009 10:28 pm ET

don't worry about deficits, the more we have Fed. debts the more Americans will be richer,because when the Govt. borrows and spends the money will go to American pockets. The rich peoples gets more benifits because they have the money to invest. In 1985 we had 13 billionaires but now we have over 1000. Where did the money come from? Govt. because we do not have trade surplus. Look at China with huge trade surplus, the country has growth. Imagine if we had trde surplus like China!!!!

Sudhir   August 25th, 2009 10:30 pm ET

This is a tough subject. I have medical insurance but the cost of it is too high, and I am only 35. We pay over $1000 per month.So is health care reform needed? Absolutely.
But the question you raise is a valid one, how do we pay for it? In my view more important question you raised is – is our president brave enough to draw out his detailed plan. He will be hammered, no two ways about it. He is pretty close to losing the plot.

As far as I am concerned, health care reform must happen. Or we all will suffer together 5 yrs, 10 yrs from now. Currently its me and wife, don't be surprised to see yourself join this exclusive club of "can't afford insurance".

go_figure7722   August 25th, 2009 10:35 pm ET

I tell you what Obama and the liberal Democrats,who took the financial football from Republicans and ran away with it, should do: STOP SPENDING. No to health care reform that most don't want. It won't save Jack even if Obama got his fantasy of complete gov't takeover. The loons in D.C. need to be stopped for the sake of our country.

Rob (NV)   August 25th, 2009 10:43 pm ET

I've been in hospital operating rooms for the past 23 years in roles as RN and as a representative of a transplant organization ... here's a glimpse into the conversations physicians are openly having and sharing:

1. The vast majority of physicians over 45 plan to retire almost immediately if Obama's "Public Option" with reimbursements linked to Medicare passes. They won't be able to afford to continue practicing. This will create an unimaginable shortage of health care providers ... you think we're in crisis now? ... think again. Worse, medical school applications will drop drastically as new practitioners won't be able to pay off their student loans in a reasonable time.

2. Every healthcare provider knows, and has known for years, how to quickly reign in spiraling healthcare costs ... TORT REFORM NOW! Sad that the president I voted for (and will vote against if he continues this course) seems deeply in the pocket of the trial lawyers.

Pete   August 25th, 2009 10:44 pm ET

A little point by point eviscerating of some standard Republican arguments:

And what else has Obama done so far? He’s spent us nearly bankrupt. The stimulus plan is a nonworking joke.
Answer: Depends who you ask. If you ask most economists, the stimulus is working. Seen the stock market lately? That's a non-lagging indicator, as opposed to jobs. Also, pleae note that while W's stimulus was a free cash grab with no conditions, Obama's version had the banks scrambling to pay us back.

Cash for clunkers was a disaster for car dealers STILL waiting to get paid.
Answer: And once they do get paid they will laud this as having been a great program and can we please do it again.

And now he wants to destroy choice in health care. Here’s how choice is destroyed. CEOs across the country will opt out of providing health care the moment government gets into health care as a provider. Why? Because it will be cheaper for companies to pay fines and levies than it will be for them to continue providing health-care coverage.
Answer: That depends on the fines and levies. Is it cheaper for a company to pay them as opposed to paying for health care? Then RAISE THEM. It's that easy.

77% of Americans support a public option, including 50% of Republicans. See? They're not all bad.

AAM   August 25th, 2009 10:45 pm ET

hey, at least he's trying something.

congrats obama.

Must suck trying to help people who are so content with the hole we are in financially.

And to those who are so apt to complain...
go become a politician instead of complaining from the sidelines.

go make the change you are so picky to find.

Samar   August 25th, 2009 10:49 pm ET

David, thanks for speaking on behalf of most of us. Mr. Obama has all good intentions to bring long term care for the health care of this country. But frankly, and simply not right now. Instead he needs to realign and refocus on financial reform and changing business models of wall street not ignoring and avoiding them. Once we have V, U, W...small w or whatever type of recovery, he can start pushing for the health care. But for now, we better save some money for a really really really rainy day.

Tearlach61   August 25th, 2009 10:53 pm ET

Yep, George Bush was irresponsible and ran up a huge deficit.

What does that make Obama? Worse.

Dan   August 25th, 2009 11:04 pm ET

I am a conservative American who has had a great run at the American dream that happens to be unemployed, but still pays for insurance. What scares me about health care reform is the fact that the vast majority of the uninsured are either, to dumb to apply for programs they are eligible form, don't pay taxes or make enough money to pay for insurance but choose not to. I see way to many people who claim they cannot pay for health insurance with cell phones, flat screens and Escalades. Create a means test and make those who can afford health care but choose not to pay a fine and use that to insure the truly poor.

Cense   August 25th, 2009 11:07 pm ET

Bush triple the deficit on a war with a country that did not attack us. Spend trillions on Iraq without no return to the American people, and now Obama is trying to pass something that will benefit the American people and the republicians are saying it is too expensive. Oh well, republicians don't know better. All they know is to trump up mendacious stories. I am an independent who voted for Obama and I am proud of the job he is doing. All you nae sayers on this blog is obviously fox news slaves that is working over time to make the president look bad. Just let me tell you it is not working on sensible people. You loud mouth non-debating people might have the spot light now but the Health Care reform will pass and it will be sucessful. The health care reform is probably going to save some of you people who are against it houses or life savings in the future.

Joy   August 25th, 2009 11:10 pm ET

The anarchists are at work again trying to disrupt legitimate social discourse on how to improve our broken healthcare system. If profit is the motive, then good health will not be the result.
Who do you think wants you to die faster, the US Government or a for-profit insurance company?

Ryan   August 25th, 2009 11:17 pm ET

People run the fastest when chasing a dollar. Removing the motive of success halts productivity and advancement. Case and point? The US Postal Service and the DMV. Needless bureaucracy and lazy employees with a sense of entitlement deliver my mail to my neighbor and make me wait two hours to take my picture and print a new license because half of the staff is on break at any given point in time. Don't put my doctor or my insurer in that position. I want them to be driven by a need to succeed. I need my doctor to want to cure and heal me on the first try and do it fast. I want my insurer fear losing my business to a competitor and to be driven to guide me to the best care at the lowest cost. Make me whole, do it fast, and save me some money.

To find the real problem, follow the money. Don't be mad at your employer for not getting you a $5 copay plan because they can't afford it. Don't be mad at your insurer for charging so much because they aren't in the business of losing money. Don't be mad at your doctor for charging so much and don't blame his/her insurer for charging so much for liability coverage because they aren't in the business of losing money either. Be mad at the juries who reward selfish individuals excessive lawsuit payouts. Be mad at selfish people suing their doctor for frivolous reasons. Be mad at a government who refuses to cap the lawsuit payouts that are destroying the biggest industry in our economy.

Bill D   August 25th, 2009 11:21 pm ET

I have heard the same crap for 30 years now–not yet, maybe next year etc etc. We can do it now and we should do it now. Deficits will still be there either way. If we pass this bill with a public option we can get our cost down for health care and that alone should make a big difference in the deficit. We are in a recession and this aint going to last forever so those figure will be down before you know it!

Mike   August 25th, 2009 11:22 pm ET

Yes, we have a deficit problem but not dealing with health care will not help it either. The reason we currently have so many problems is that President and Congress have chosen not to tackle the hard problems for fear of the next election. Health care, energy and education have been kicked down the road long enough and it is time to do something about it so that the problems won't continue to fester like a bad disease ultimately killing the Nation.

I am no economist but it seems to me that solving these issues will make us stronger economically and help with the deficit in the long run. Look how long it took for us to deal with civil rights and what it finally took, a President who said screw it, this is the right thing to do. I believe that Obama will have a hard road to hoe but if he fights and succeeds he will go down in history as one of our great Presidents.

eolufemi   August 25th, 2009 11:24 pm ET

In the middle of a recession, people don't want to pay taxes, yet they expect the government to continue offering services to the people.

Time to slash and burn the budget starting with the Defense Department.

Liberal4Obama   August 25th, 2009 11:29 pm ET

Funny how Michael Steele was Pro-Medicare last week and this week he throws Medicare under the bus. Can republicans just be honest with the American people and admit all they want to do is kill healthcare reform so they can hand President Obama a defeat? I mean I dont know anyone who thinks they really wanna have an honest debate on the issues, its all LIES and more LIES from the GOP.

Mike in NJ   August 25th, 2009 11:30 pm ET

I was at a town hall forum in NJ today run by Frank Pallone who was a significant writer of HR 3200.

The scariest thing I took out of there is that he didn't even know the current laws in NJ. NJ has guaranteed issue coverage, and has modified community rating meaning that the rates cannot change. He told the group of 1000 or so people there (about 350 at a time) that you could have family individual insurance and it could originally cost $13,000 and then all of a sudden it could be $20,000 because of pre-existing conditions.

NO IT CAN'T!!

This person who is WRITING the legislation supposedly doesn't know the laws of his own state that he's been a congressman in for some 30 years???

I'm very afraid.

Sherri   August 25th, 2009 11:32 pm ET

Obama has destroyed our childrens' future with his prolifigate spending. I don't want him anywhere near our health care. He's damaged this country permanently already.

Jake Davis   August 25th, 2009 11:42 pm ET

Now Gergen tells us – he and CNN were in the tank for Obama during the campaign and stayed there through the stimulus – and now he changes his mind to cover his butt – throw that bum out

bkzeallen   August 25th, 2009 11:42 pm ET

Gergen, you are so late to this, it's incredible. The writing has been on the wall, and you did no favors to put your blinders on. You have been in the tank for Obama from day one, putting aside rationalism and curiosity and instead, building up a nobody with no experience on the cult of personality that his campaign produced. America has awoken. Maybe journalists and commentators will actually do what they are paid for and look into the multitude of stories of corruption this new era of "Hope and Change" has brought us. You are a disgrace. Wake up and do your job.

David   August 25th, 2009 11:49 pm ET

Fixing the deficit is never a politically popular idea because it means either cut services, raised taxes, or a combination of both. Multiply that by the fact that we're in a recession and it doubly unpopular. Chances are the deficit issue won't be tackled until the economy is firmly on two feet.

Instead we should be pushing our representatives toward creating budget-neutral health care reform.

Francis Hopkinson   August 25th, 2009 11:49 pm ET

"annual interest payments of over $900 billion"

Hmmm... Let's do a little math, shall we, Mari and Steve?

First of all a Billion = 1,000 Millions. It is shocking (or maybe not with todays school system) how many people do not know how many millions in a billion. (and a Trillion is 1,000 Billions)

So, $900 Billion = $900,000 Million per year in *interest* alone.

There are roughly 100 million tax returns filed each year. Many pay little or no tax, but let's just say for the sake of argument that they share this $900,000 Million in *interest* payments (not touching the principal. You know, kind of like the credit cards that you make minimum payments on).

$900,000 Million divided by 100 million taxpayers = 900,000 / 100 = $9,000 for every tax payer, every year. (that's $750/month for *interest*!)

Now, I am sure that Mari and Steve and their ilk will have *no problem* paying their share (or maybe they are counting on the evil rich to pick up their part), but I was kind of hoping to send my kids to college, pay my mortgage, put food on the table, etc.

My family's health insurance costs me right around $750 / month with premiums and co-pays. It would be less if I went with my employers Blue Cross HMO (about $450 / mo from my check) but I choose to purchase it myself as we have been with Kaiser for many years.

Are you starting to see my point here??? If not there is no hope for you.

Steve Bannister (who likes to use big words to show us how intelligent he is) states: "One must look at several factors before responsibly judging a federal deficit or debt as “too large” or even “too small.” This one is, all things considered, certainly not too large." He conveniently omits what these "factors" might be. Oh well, I guess we'll just have to take his word for it. Hey, Steve. Who's going to pay *your* share?

Now, do we need reform? Damn straight. Let's start with:

1. Tort Reform (that's Lawsuit reform, Mari).
When doctors must pay over $100,000 / year for malpractice insurance... when the John Edwards of the country are driving baby doctors out of practice... when an estimated 10%-15% of medical costs are "defensive" medicine, it is not hard to imagine the savings if the ambulance chasers were to be reined in. But, the Dems would rather drink battery acid than to mess with one of their main sources of funding. So, that is why there is not *one word* about it in the 1,000+ pages of these monstrous bills (Hey Steve. Have you read the bill??? I didn't think so)

2. Remove the restriction on interstate sale of insurance. This will drive up competition and allow folks to buy the policy that is right for them. A little understood fact is that the state governments *mandate* different coverage levels in each state. Some require coverage for everything from breast implants to hair plugs to fertility treatments. If you just want insurance for catastrophic care and want to pay for the rest as you need it, too bad. That is why the same insurance costs over $8,000 / year in high tax states like Mass, but less than $2,000 / year in many other states. If you lived in Mass, wouldn't you like to be able to purchase insurance from an insurer state where it cost 1/4 as much. (maybe Steve understands more *factors* involved that I don't understand)

3. Make health insurance tax-deductible. (do I even need to explain this one?)

There are more, but these three alone would make a huge difference in the cost of health insurance. (Steve please enlighten me as to what nuances I am missing here)

And, don't even get me started on how MediCare, MediCaid and the VA are all government run health care and they do *just fine*. Here's a clue Sparky: Go and Google "MediCare unfunded liability" You will quickly find out that all three are bankrupt and only survive by drawing from the general fund.

If you want government health care, move to canada and leave the rest of us in peace. ( I thought you folks were going to do that after the last two elections)

Shawn   August 25th, 2009 11:53 pm ET

To those of you still pointing your fingers at the Bush administration, might I remind you that your black savior has out spent Bush by about 6x. There is hardly a comparison. Eight years, eight months, simple math? We could have invaded the entire world and still not spent what Mr. Obama has ran through. We are in fact the greatest, most powerful, and youngest super power on the planet. Nearly 40% of the medical field has already been socialized by our government and they are clearly screwing that up. Why allow them to do more? No one goes unattended when it comes to terms of health in this country. Why not take down the red tape and allow the 1,300 medical insurers out there to properly compete? That seems like a logical step towards lowering costs if you ask me. To those of you who whine about the people who are uninsured, why don’t you start buying them insurance if you're so set on helping? President Obama has been far from honest about this entire debate. The liberal mainstream media, is far from honest and CNN is included within this group. Illegals are in fact covered in this Country. It all comes right back to the people pulling the wagon in this country. Taxes, well who hasn’t seen them rising? Smoking, drinking, food, ammunition, and soon the cost of gas will be taxed even farther. Yes he may not immediately and let me emphasize immediately here, he may not get it through income tax any time soon but they are already getting it in other areas. The cost of living is on the rise, just look around you. Now how honest is that? Why is no one discussing this? Lastly, black America needs to be stifled. If you don't want to help pull the wagon then shut the fu%@ up and get out of the way. Go back to your country or get off the back of the wagon and start helping and to you ignorant white folks who feel as if your "intellect" is far beyond the rest of the worlds because you attempt to follow your line of Political Correctness, you too can get out of the way. White guilt has ran its course and most enlightened and actual intellects have learned that Political Correctness only leads in one direction, a full circle to hypocrisy. It is time that you people and yes I said YOU PEOPLE put down your IPhones, put down your five dollar latte, and start helping. No one thinks you are special. Yes, the prick next to you with the scarf who is attempting to read the Wallstreet Journal while chewing at his bagel, he too is just as curious as to whether you notice him. You both need to suck it up and shut the fu%# up. You’re both just as much of the problem as the rest of the a55holes on the back of the wagon. A shameful America..

eolufemi   August 25th, 2009 11:54 pm ET

@mark
I'm a consultant with a juvenile court in the midwest. We've reduced recidivism by 15% in our county, while reducing caseloads to best practice levels. These sorts of accomplishments by government are what we call invisible victories. People don't notice when the government is doing its job. They just notice when it isn't. People don't notice when they don't get robbed, raped or killed. But when they do it's the government's fault. People need to be more realistic and appreciative of the quality of life they have, which is very much a function of having a great government that actually values the people enough to offer them education, health care, and the like.

Ann   August 26th, 2009 12:01 am ET

" Stay strong with Obama and the Dems. America and you will be glad you did.

Sincerely,
A former Republican"

,,,,,but it's the republicans that are astroturfing. Yea, right. Do you really think people are so stupid to read your post, which is straight from the DNC talking points, and then believe you are former Republican. Are you so ashamed of what you are saying that you have to hide your political affiliation? That's the problem with liberals. They just repeat what somebody tells them to say, not truly understanding or believing it, and then don't want to accept the responsibility of their actions. Take Obama , for instance, all lofty rhetoric, and then washes his hands of it by blaming somebody else. If you don't understand the problems – if you can't comprehend the solutions – shut up and leave it to the adults.

Stu   August 26th, 2009 12:10 am ET

As with any problem, there are multiple levels of root cause. Many are actually symptoms of more core root causes. One can not look at the cost per person for health care and the life expectancy. The health of the people must be taken into account, a Pareto of the actual health care costs would be insightful, costs by age, health, race and sex; etc.

Where is the real data???? What is Obama's health plan? Is it the house plan, the senate plan or something else?

We need to fix the deficit, medicare, medicaid, social security and start laying the foundation for health care reform. This would be tort reform, electronic storage of medical records, incentivizing medical students to become family practice doctors (to meet the resource requirements), negotiate drug costs, etc.

Chris Proudfoot   August 26th, 2009 12:18 am ET

Great article.....I can't even think about health care....Even though the idea of strangling the economy (just as the govt did in 1930) in order to get 47 Million health care (47 0f 300 is 1/6th or about 18%) not counting that half of them have REFUSED health care to save money -I'll bet they have a plasma HD TV and a pretty nice car,and then half of the remaining are on the streets with Mental illness, so for 10% we will emaciate ourselves.... Come on – Lets fix the economy, fix social security, fix medicare, and most importantly stop paying China 1.5BILLION in daily interest on the debt that they carry .....And Niccole L above – What is the QARY (Quality Average Remaining Years) on good old TED...How much should I be taxed to keep him going??? By the way, you already pay for Teds medical insurance....Lets wake up and see that we need to slim down our debts and fix the economy before we have even an argument on how to reform health care.

Andre Kenji   August 26th, 2009 12:20 am ET

"So there is no reason to panic about the size of the American deficit. As the economy improves so too will government revenues from taxes and government expenditures on stimulus and income support for the unemployed will be reduced ensuring that , so long as interest rates are kept low, the ratio of debt to GDP will stabilize and even drop as the GDP grows and unemployment falls"

You can´t keep high deficits and low interest rates on the same time. It will come a time when people will not want to lend you money and you will have to raise interest rates. I know that because that´s precisely what happened in Brazil, where I live.

Brandon E.   August 26th, 2009 12:22 am ET

Does anyone realize that the US only brings in about $2 Trillion in revenue a year from taxes. YET, just our interest payment of $900 billion alone on that is almost half our income. Then we spend $1 Trillion to bail out greedy corporate executives because of government coercion in the 1990's to encourage lending to high risk borrowers. When we will wake up. If you think the US government can not fail you are wrong. Money is money, Japan collapsed in 1980's, Soviets in the early 1990's, recently Iceland. The US is not invincible. But now we want to spend more money and insure everyone for healthcare. Get spending under control and then lets talk!!! WAKE UP PEOPLE!!!

Randy, Austin, TX   August 26th, 2009 12:27 am ET

Captilism (i.e., free markets) dictates health costs, which in turn dictates insurance costs. There is no doubt that the insurance industry needs more regulation (i.e., don't allow them to pick and choose or drop customers who have "played the game" fairly). Require them to keep children on parents plans until at least age 25 when they first start thinking about being responsible (if your lucky). Don't allow them to sell "individual" policies and this will force them to encourage group formation and coverage so they can use numbers to leverage against risk (this is what you call capitalist socialism, i.e., make everyone equal with regard to risk and use price adjustments to increase sells), which will result in more competition and lower insurance cost. Pass tort reform, portability, and forget about another socialist entitlement program that will suck the life out of the American economy for decades to come.

Chris   August 26th, 2009 12:28 am ET

Rick in Texas said:
"If the entire health care system, went public, then government would be able to contain costs, by setting medical salaries, by setting fair drug prices (everyone knows that drug prices in this country are excessive), and by taking the profit motive away from hospitals."

Rick, that was a genuine comment even though I TOTALLY disagree!
If Government contains costs then that means they'll decide how much gets spent and who it gets spent on... Do you really want to go see a government bureaucrat for approval before your doctor can operate on you?

If Government controls medical salaries, how many people will want to become brain and heart and lung and ER surgeons? Oh, and also, I know several doctors who after taxes and paying for their employees actually make about $50,000 a year. Is that a high medical salary? Most doctors are doctors because they want to help people.

If we set drug prices, we take away any and all motive for a company to spend billions to research, develop, and patent a new drug... so that's not a good idea to set controls on prescription prices because it will only limit our future prescriptions. Do you want to take 1970's prescriptions or the medicines of today? Where did all those new prescription medicines come from the last 30 years? They came from innovation from these prescription drug companies. I agree prices are too high, but we can reform things rather than limit our future medical breakthroughs by government price controls! I don't want to be taking the same medicines 30 years from now because we started controlling prices for prescriptions, which will only lead to less money to research and develop better medicines in the future!

Last, by taking profits from hospitals you suggest... I rarely know a hospital that makes a profit! Seriously, hospitals write off billions every year in medical care, and they survive and make ends meet most of the time with grants, foundational gifts, charitable donations, and what they get from insurance companies. Let's face it, hospital profits are so low, it's the least worry of the health care debate.

The real issue in health care is that since doctors and hospitals have to bargain/wrangle with insurance companies for payment, they are charging MORE for hospital stays and medical care, so that they get SOMETHING from the company! Insurance companies need EFFECTIVE regulation so that hospitals and doctors can more honestly bill patients and their insurance companies. That would bring costs WAY down!

But again, atleast you're not spewing liberal anger all over the place or blaming Bush still, as if he is responsible for this terrible Health Care Bill in Congress. Thanks for the honest debate and genuine dialogue!

Mike   August 26th, 2009 12:32 am ET

What is going on truly, truly troubles me to the point of despair, for my family, our freedoms and for my country. To me, it goes way beyond fiscal irresponsibility...it is a calculated, deliberate, incremental dessicration and destruction of all we hold dear. This is death by a thousand cuts for America. We have been sold a bill of goods that was not as advertised. All of our choices stunk, but the man we picked to lead our country is hell bent on destroying it. Look at who his friends are, folks. Didn't we learn from our parents that you can judge a man by the company he keeps? How many of us chose to ignore the facts and are now crying because we were lied to and deceived beyond our wildest imaginations? I have never felt so hopeless.

sammie walker   August 26th, 2009 12:44 am ET

It is always amuses me when someone (like Gergen) assumes like health care reform is somehow unrelated to the mounting federal debt. After all, the skyrocketing cost of health care is the biggest driver of the federal deficits and debt. We have to enact sweeping health care or the economy will fall off a cliff.

Freedom Fan   August 26th, 2009 1:22 am ET

"I am a professional economist and a professor of political economy..."
-Harold R. Chorney

Keynesians like you and krugman are synaptically crippled. With guys like you teaching our kids no wonder the West has become ignorant of history and economically illiterate.

The only purpose for a What-Me-Worry? keynesian is to give "intellectual" cover to free-spending, incontinent politicians. You ivory tower fools get the glory; our kids get the bill.

Mohammed Chawla   August 26th, 2009 1:42 am ET

We can not, at this time, afford spending trillions on Healthcare and Cap & Trade. The country is on the brink of insolvency and cramming these programmes down our throats will push us over the cliff.

We as a nation, need to take a breather.

Concentrate on economic recovery, job creation, get us out of Iraq and Afghanistan. That will help in reducing the National Debt.

Once the house is in order, we may go back and revisit some of these problems.

Paula   August 26th, 2009 2:15 am ET

Mr. Gergen,
In general I tend to agree with your well-reasoned approach to finding solutions for complex problems. In this particular case, I understand your concern about undertaking health care reform prior to addressing the deficit. On the surface, it does seem that it would be a no-brainer to make sure that old debt is taken care of before new debt is incurred.
There are two reasons that I disagree with you this time.
First, the deficit will actually increase more if we do not have some health care reform. According to a 2009 Commonwealth Fund report, "...insurance premiums have been rising much faster than income across states. As a result, by 2008 total premiums—including employee and employer shares—equaled or exceeded 18 percent of the average household income for the working age population in 18 states, compared to just three states in 2003. In three states—Mississippi, Tennessee and West Virginia—family premiums averaged 20 percent or more of middle household incomes for the state’s under-65 population. The stress on businesses and families is particularly acute in Southern and South-central states, where premiums are often high, yet incomes are lower than national averages. In addition, employees are often paying more for less, because as costs rise employers have increased patient cost-sharing while limiting benefits."
Second, there is a moral issue related to not addressing health care reform that, I believe, outweighs the fiscal issues. How do we as a people say to our fellow countrymen that if they cannot afford health care, then they will simply not get health care. Too bad if you can't afford insurance, too bad if your insurance drops you after you've maxed out due to a catastrophic illness, too bad if your spouse has a preexisting condition, so sad about the 60+% of bankruptcies that involve medical costs/illness, what a pity that one in 13 White children is uninsured, compared to one in five Latino children, one in five American Indian children, one in eight Black children, and one in nine Asian/Pacific Islander children. Too bad too, that (according to the Children's Defense Fund), the broken child health and mental health system is a major feeder system into the Cradle to Prison Pipeline for hundreds of thousands of minority children each year. The CDF summarized a recent report from the Baker Institute: (the) "bottom line is that extending health insurance coverage to all children in the United States would be relatively inexpensive compared to the cost of letting children remain uninsured and would yield economic benefits that are greater than the costs...An ounce of prevention is far more cost-effective than a pound of crisis care when children get sick or into trouble, drop out of school, or suffer family breakdown."

nea   August 26th, 2009 2:17 am ET

Some of you erks me when you start talking about the national debt what do this country suppose to do suffer as far helping people get on their feet ? Just like the stimulus package that contribute to it suppose it would nerve have been passed what would the unemployed do about extended uemployement then or other programs that was provided with the stimulus if this never had been passed the many of you thats complaing now would have your lip drooping mad at the President even more. And please dont forget that G. W. Bush did contribute as well with the wars as well as tax cuts for the rich and i bet none sent their rebate checks back and say they didnt want it because its increasing the debt.

grammarian   August 26th, 2009 2:50 am ET

Then raise taxes. If spending is necessary . . . but deficits are bad . . . then there's no choice but to bring in more revenue. That's polite talk for more taxation.

Libby   August 26th, 2009 3:45 am ET

Anderson Cooper, you do know that gays will suffer the most if Obama's health care is passed, right. Who are the least needed people in society?
Those who are at risk for expensive health care and those who have the least to contribute.

So are you really encouraging this Bill?

Ken, Centreville, VA   August 26th, 2009 4:09 am ET

Interesting conundrum: Deficits threaten health care reform. But, the absence of health care reform threatens higher deficits.

It's a simple fact that our health care is ridiculously over priced:

US – Cost of health care per capita: > $7000.00, Average life span: 78

Japan – Cost per capita < $3000.00, Average life span: 86 (highest in the world)

Oh, by the way, Japan has public funding as part of their system.

Enough with the demagoguery and attacking the president for taking decisive actions to prevent an economic collapse.

The solutions to the health care mess are staring us right in the face, and, no, the private sector is *not* the answer. They had their chance and all they've done is cut service and gouge the insured, for decades.

Interesting that David Gergen dispenses this advise after having served in the Reagan adminstration, when the National Debt was nearly tripled in 8 years. ( x 2.7)

cottonmouth   August 26th, 2009 4:17 am ET

w six, seems like you left out the best parts in your game of stats

2009 (1,787) Bil deficit
2010 (1,481) Bil deficit
2011 (921) Bil deficit
2012 (590) Bil deficit

Yep that's twice the deficit Mr. Obama will run up in half the number of years. Please, these facts are easily obtainable on the CBO web site. There is no way around theses number, the deficits Mr. Bush put up pale in comparison to Mr. Obama's spendathon. Oh and that's not including his Trillion dollar health care deforms.

Like many democrats, he's better at getting elected than performing. But some, we knew that, e.g. no distinguishing professional achievements, no distinguishing legislative achievements at either the state or federal level. Simply put Mr. Obama is in above his pay grade. Just as in Congress, he makes speeches but is incapable of producing real policy.

Belle   August 26th, 2009 4:39 am ET

Actually it is laughable that the "government" touted option by my fellow Democrats would be able to reduce health care costs.
1. They obviously have not read HR 3200. I have.
2. There is no tort reform whatsoever in the bill.
3. They forget the "back room" deal Obama made with Pharma, which was an agreement not to lower costs on drugs...so there will be NO lowering of pricing.
4. HR 3200 is Unconstitutional. Neither the Legislative or Executive Branch of Government have the power to dictate to Americans they must buy something.
5. No where in the bill does it say "This plan is optional".
6. No where in the bill does it allow for Private Insurance to compete in all 50 states, so obviously there is NO competition.
7. HR 3200 does NOT allow anyone to sue the Government for "Price Fixing."
8. The Post Office is not in it for money...and is facing a 7 Billion dollar shortfall. (Government Run)
9. GM is not on the stock market as a listing anymore. (Government Run)
10. Medicare/Medicaid going Bankrupt (Government Run)
11. America going bankrupt (Government Run)

Perhaps it really is time to audit the Private Company called the Federal Reserve. I would like to know where all of the TARP and Stimulus money went.

J.V.Hodgson   August 26th, 2009 4:55 am ET

Covering 47m Americans costs money, certainly in the medium term say 5 years. After that there are many economic benefits of the plans concept as outlined by Obama.
The point is do nothing and the premiums will rise forcing more to become uninsured and the 47m grows... that is a real economic disaster.
The whole Amrican social security system is projected to be in increasing deficit, and even bankrupt.
It is simply a choice of the lesser of two evils, and its irrelevant ( or should be) whichever party you support... Go figure!!
Regards,
Hodgson.

truthislove45   August 26th, 2009 6:20 am ET

The Devil comes to kill steal and destroy/Obama supports murder of the unborn/he supports depriving citizens of liberties under the guise of healthcare/he supports the elderly die (don't be deceived that he doesn) sounds like Obama is employed by Satan. Seek Jesus Christ for true change! Because Obama is short changing a man preaching being moral when per Gods word Obama is a godless man. HYPOCRITE!

Tanesha Allen   August 26th, 2009 6:41 am ET

Regardless of what the U.S. citizens think, the president is still going to do what ever he think will help our economy. But personely I think its a good idea because people will pay for health care, so there for we wan

Tanesha Allen   August 26th, 2009 6:46 am ET

Regardless of what the U.S. citizens think, the president is still going to do what ever he think will help our economy. But personely I think its a bad idea because were already in a recession and all this health care is going to do is make the government spend more money that we need.

Tanesha Allen   August 26th, 2009 7:06 am ET

Regardless of what the U.S. citizens think, the president is still going to do what ever he think will help our economy. But personely I think its a bad idea because were already in a recession and all this health care plan is going to do is make the government spend more money that we need. An if Obama decides to go through with the health care plan the government might have to raise taxes to get them out of this one. Also why would they do this and its a lot of people losing there health care today. I just pray that Obama no what he's doin and hopefuly it doesn't mess up the economy more.

Tanesha Allen   August 26th, 2009 7:09 am ET

Regardless of what the U.S. citizens think, the president is still going to do what ever he think will help our economy. But personely I think its a bad idea because were already in a recession and all this health care plan is going to do is make the government spend more money that we need. An if Obama decides to go through with the health care plan the government might have to raise taxes to get them out of this one. Also why would they do this and its a lot of people losing there health care today. I just pray that Obama no what he's doin and hopefuly it doesn't mess up the economy more. Tanesha ( God Bless)

BEVans   August 26th, 2009 7:23 am ET

Now is NOT the time for healthcare reform...why do you think it is a good idea to revamp an entire system for 4% of the population...why do you think this is a good plan when Unions and politicians are not partaking in this...why do you think this is a good plan when no one understands what the bill encompasses....adding more to the deficit is adding more fuel to the already out of control fire..contradictory to Biden, spending more does not help get us out of debt.

john   August 26th, 2009 7:53 am ET

What is the cost of not reforming the Heath Care System? If we can fund wars we can fund health care.

Matt   August 26th, 2009 8:10 am ET

It amazes me how foolish so many of you are. We NEED Health Care reform. We NEED to fix this problem.

You hate Obama's plan, create another one. Get the Indepedents or the GOP to create an alternative. They won't. Do you know why? Because the insurance company's have them in their back pocket. Blue Cross/Blue Shield doesn't want it. They don't want to lose their monopoly. They LOVE watching people die so they don't have to pay out on claims.

The government is not great. It messes a lot of things up, but this is already broke. It's for me more of a question of who is better off in the end: the insurance company's, or the people who need care?

Cut the defecit. Return us to the era of Clinton surplus, but NEVER say we did the right thing if we let Health Care reform die.

John Murphy   August 26th, 2009 8:11 am ET

Everyone talks about national debt but never mentions personal debt.

What about the people who suffer and die because they either don't have insurance (15%)? What about those who have insurance but not enough to cover NEEDED treatment(21%)? Beyond that, what about the 1,000,000 Americans who go bankrupt from medical bills?

Americans are great at making up mythical stories about rationing in other countries. American myths about foreign health care are 98% false, but Americans never mention the rationing that occurs in the American system.

Insurance companies denying claims is RATIONING! Insurance companies denying coverage or cancelling coverage when a person gets too sick is RATIONING. Transplant committees arbitrarily denying transplants based on psychosocial interviews, which means if they have `social value` is RATIONING.

beatrice   August 26th, 2009 9:47 am ET

About health reforms,

I heard people criticizing Obama for taking vacations. Good for him! I hope he rests and come back with a lot of energy and fight for health reforms!

I was thinking that maybe he could fight later for Americans to have more vacations! :-) )))) (My sister who lives in France and has 5 weeks vacation a year makes fun of me, having only 1!!!!)
So they can travel more and open up to what other countries have achieved concerning their health care! mmmm....and then I am thinking that it might not work! There is too much arrogance!

Susan   August 26th, 2009 9:58 am ET

David

Your Extreame Challenges, Healthcare program was very well done.
As was discussed in that program, things always cost much more then originally proposed, thus adding a huge amount to an already out of control deficit. Why can't we deal with the uninsured first? We can also squeeze the fraud, abuse and waste out of the system as this will not cost anything. As the economy improves we can then purpose changes over a period of time to the healthcare system as a whole. Just my thoughts !!!!

Thanks for your comments !!!!

Bill   August 26th, 2009 11:51 am ET

Obama's primary legacy on his current course will be the destruction of the dollar. And perhaps relegating the US to the ranks of latin American style third world debtor nation. The guy needs a clue – cut costs & fast

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