Visionary sf author Robert Heinlein helped popularize TANSTAAFL. Nowadays, economists may be more likely to use the acronym NFL.

Entitlement programs are subject to this No Free Lunch principle, as they may have huge direct and hidden costs. If we’re going to chart the benefits of a proposed new entitlement program, should we not also chart the likely costs?

As a start towards fairness [which I try to maintain even towards humble pie charts] it seems these health cost charts should clearly communicate to the reader that if the typical family of four would contribute roughly $1K to $9K of the costs depending on income, the tax-payer would be responsible for all the remainder of this $9K cost per typical family enrolled. Then we might consider the impact of such additional unfunded public liabilities in light of the current official US Federal debt of about 87% of annual GDP, and the annual deficit around 10% of GDP, as the Federal Government is spending 166% or so of its total projected tax revenues for the current fiscal year. Perhaps there are more cost effective alternatives?

It seems to me that the rapidly changing huge $ numbers at sites like usdebtclock.org become slightly distracting if one really tries to grok the data. Perhaps you or Jon would care to try to effectively chart the big picture of US public spending versus revenue and accumulated debt from such numbers?

Very good commentry, Dale…critiquing how data could be better presented is one thing, critiquing what data should be presented is another.

Glad you hated the pie charts!

TANSTAAFL.

The bigger story here is the unplotted subsidy. These reform plans all mandate comparably massive subsidies to shift health care costs over to taxpayers in the future. The US allegedly has the most overpriced health care system in the world now, and such subsidies would ensure fuller participation by more Americans in this overpriced system at future taxpayer expense, with no incentives for individuals to hold down costs. It’s one thing to plan a better social safety net, or even to face the tough rationing decisions that sustainable socialized medicine requires, but another to try to socialize runaway expenses by sleigh of hand so somebody else pays later.

The alarming Greek budget deficit was running at 13% of GDP. In the US, ours currently adds “only” about 10% of our GDP onto our public debt each year. Greece passed an austerity budget, at least. The US Congress seems still focused on additional spending plans. Taxes don’t come close to covering US government spending now or in the foreseeable future after the economy improves. Not even Uncle Sam can charge things forever without catching up on the tab.

*Except for Jeff’s pie charts: more than usual, these pie charts are just wrong.