There is no doubt that this news isn't going to be good. If it were, the Administration would be quick to release it. Instead, it shows the heavy handed way in which this Administration is hoping to press for health care reform, the facts be damned.
The White House is being forced to acknowledge the wide gap between its once-upbeat predictions about the economy and today's bleak landscape.The Administration has oversold the effects of its porkfest stimulus package, which has done nothing to improve the unemployment figures, and is quite literally sucking the life out of the economy since the deficit spending dwarfs anything done in US history outside World War II defense spending.
The administration's annual midsummer budget update is sure to show higher deficits and unemployment and slower growth than projected in President Barack Obama's budget in February and update in May, and that could complicate his efforts to get his signature health care and global-warming proposals through Congress.
The release of the update — usually scheduled for mid-July — has been put off until the middle of next month, giving rise to speculation the White House is delaying the bad news at least until Congress leaves town on its August 7 summer recess.
The administration is pressing for votes before then on its $1 trillion health care initiative, which lawmakers are arguing over how to finance.
The White House budget director, Peter Orszag, said on Sunday that the administration believes the "chances are high" of getting a health care bill by then. But new analyses showing runaway costs are jeopardizing Senate passage.
"Instead of a dream, this routine report could be a nightmare," Tony Fratto, a former Treasury Department official and White House spokesman under President George W. Bush, said of the delayed budget update. "There are some things that can't be escaped."
The administration earlier this year predicted that unemployment would peak at about 9 percent without a big stimulus package and 8 percent with one. Congress did pass a $787 billion two-year stimulus measure, yet unemployment soared to 9.5 percent in June and appears headed for double digits.
This report will likely show that the economic situation is far worse than the last budget figures; that unemployment rates continue rising around the country - with 15 states having 10% or higher (Michigan is at 15.4%). New York and New Jersey are both creeping towards 10%.
The Administration's only hope that the health care plan gets passed through Congress is if the Administration attempts to hide the data. As it is, many Americans are already leery of the Administration's statements on the health care reform package, and constituents are busy letting Congress know. With the economy tanking, Obama is losing what clout he has to get it done.
Simply put, no one should trust what the Administration is proffering as to its numbers and potential savings on the health care reform, since even the OMB notes that it offers nothing but smoke and mirrors to effectuate savings.
It's a proposal that will cost far more and deliver far less quality.
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