Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

July 30, 2018 | “Free Stuff”: Medicare for All Cost Pegged at $32.6 Trillion for 10 Years

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Cost estimates for “free stuff” are pouring in. The sticker price for “Medicare for All” is shocking.

“Medicare for All” sounds great. And every unthinking socialist wants it. But here’s the deal: ‘Medicare for All’ Would Cost $32.6 Trillion Over 10 Years.

Sen. Bernie Sanders’ “Medicare for all” plan would boost government health spending by $32.6 trillion over 10 years, requiring historic tax hikes, says a study released Monday by a university-based libertarian policy center.

That’s trillion with a “T.”

The latest plan from the Vermont independent would deliver significant savings on administration and drug costs, but increased demand for care would drive up spending, according to the analysis by the Mercatus Center at George Mason University in Virginia. Doubling federal individual and corporate income tax receipts would not cover the full cost, the study said.

The Mercatus analysis estimated the 10-year cost of “Medicare for all” from 2022 to 2031, after an initial phase-in. Its findings are similar to those of several independent studies of Sanders’ 2016 plan. Those studies found increases in federal spending over 10 years that ranged from $24.7 trillion to $34.7 trillion.

As is typically the case, Bloomberg did not have the courtesy or decency to link to the study. Inquiring minds may wish to consider the Mercatus Center study on the Costs of a National Single-Payer Healthcare System

I am not at all surprised by the estimated cost but I do have a question: How do we afford $3.4 trillion a year for 10 years of “free” stuff?

And Medicare is just a start. There are proposals for free college tuition and free universal pre-kindergarten among other things.

Mike “Mish” Shedlock

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

July 30th, 2018

Posted In: Mish Talk

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.