Obamacare's cost,pre-K schools, worldwide debt

And it is interesting what you can learn on a winter day. 

            Did you know that Senator Sessions used legislative privilege to find out how the GAO (General Accounting Office—that’s Obama’s office which monitors spending of the executive branch) scores Obamacare.  It turned out GAO says that it will add $6.2 trillion to federal budget deficits (in the next ten years, as everyone is projecting now).  Roughly $600 billion a year; that is just the Federal spending part.  And then since 250 million people have health insurance and of those on the private insurance system, premiums have risen $3045 per person in the last 3 years, and they claim it will rise that much again.  That works out to another $650 billion/yr.  Since health care is 18% of a 15 trillion GDP, that makes all health care expenditures $2.7 trillion at present.  So Obamacare will add about $1.25 T or roughly 50% increase to our present health care system. (Source: Heritage Foundation)

            Here’s another interesting one.  In December HHS quietly issued a report on Head Start, the pre-K for poor kids that Uncle Sugar runs.  They say that Head Start costs $23,000 per student, roughly 3 times the expense per student of grades one through 12 here in the Midwest, or roughly twice what the big spender states like NY and CA spend on elementary and secondary students.  I guess it is so high because the people who can’t deliver mail on Saturday, the people who gave guns to the Latin Drug Cartels, are running  it.  The report shows no gains or advantage among the students.  By 4^th grade former Head Start students and others are equal in progress.  Moreover, experts say that this agrees substantially with all other credible studies. The Brits, in an article in The Economist point out that OK and GA are the only two states with pre-K on statewide basis and GA headstarters are equal to average non-pre-K kids by 4^th grade while OK is subpar. 

            That’s significant because this is what Obama wanted in his State of the Union.  And Economist points out that kids age 3-4 are learning 1. Motor skills by adventurous play, 2.sounds and language, 3. Cooperative play and imaginative play, and 4. Family values from parents.  None of these would hold any great advantage for a government school.

            What does correlate with outstanding performance by 4^th grade?  Dual parentage and stay-at-home mothers.

            And then there is news from around the world.  Planet Detroit is probably a month away from financial exigency.  That’s what you call it when a government has no hope to pay its bills and essentially goes bankrupt.  The state of Michigan then appoints an emergency manager, a dictator who sets policy, pension payouts, and salaries at will. It would become the largest “municipal bankruptcy” in history. Cause: too much spending and too many promises and no revenue to pay.  Hugo Chavez went home to Venezuela a week ago.  But he can’t govern.  He is in dire health due to complications from his cancer operation.  He can’t speak because he wears a tracheotomy tube, he passes in and out of consciousness.  He was re-elected but he hasn’t been sworn in. So then his Veep, Maduro, would be in charge or would succeed him if he were to resign. Not a plum of a job. Venezuela is a wealthy oil-rich country.  But wild spending the last few years (last year was 8.5% of GDP, almost as bad as USA at 9.0%!) At any rate inflation is now about 20%.

            Jamaica suffers from low growth and declining productivity due to a heavy debt burden (140% compared to 110% for USA).  Hmm.  English speaking people, fabulous beaches, near-perfect climate for farming, huge bauxite deposits and a port that is just a short hop from Florida.  What could possibly be wrong? Turns out they keep raising taxes in a desperate attempt to bring down the deficit, and all the job creators are leaving for Canada. 

India’s government borrowing keeps generating inflation and their deficit crowds out much-needed investment.  It’s in the 8-10% of GDP range (depends on which state).

            And then there is Italy.  There was a big third party movement ( our news media adores 3rd parties!) Hmm.  The parliament is split hopelessly with no possible coalition government.  And with runaway deficits at 9% of GDP and debt slightly over 110% of GDP (why that’s identical to America!) the European Union is threatened once again and Europe’s economies have caught cold (recession). Oh, and 8% inflation too.

            And the Democrats don’t think  this adds up to anything?