BREAKING: Health Care Reform Makes it Harder to Balance the Budget

More

Who could possibly have predicted this shocking and totally unexpected turn of events?



Senate Democrats released details Wednesday of a five-year budget plan that promises to narrow the deficit dramatically by 2015 but still accumulates almost $3.9 trillion more government debt over the same period.

Trying to survive the political storm around them, Democrats would postpone the toughest decisions until after November's elections, when a presidential fiscal commission is scheduled to make its report to Congress. But there is no escaping the political bind that grips the party, exhausted from the debate over health care reform and under political pressure to extend Bush-era tax cuts.

Health care ate up most of the available Medicare savings and popular tax offsets that might otherwise be tapped to narrow the deficit. And as a result, it's harder to dig out of the deficit hole, and little progress will be made in the short term absent a further surge in the economy.

Jump to comments
Presented by

Megan McArdle is a columnist at Bloomberg View and a former senior editor at The Atlantic. Her new book is The Up Side of Down.

Get Today's Top Stories in Your Inbox (preview)

A Delightful, Pixar-Inspired Cartoon About the Toys in Your Cereal Box

The story of an action figure and his reluctant sidekick, who trek across a kitchen in search of treasure.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Juice Cleanses: The Worst Diet

A doctor tries the ever-popular Master Cleanse. Sort of.

Video

Why Did I Study Physics?

Using hand-drawn cartoons to explain an academic passion

Video

What If Emoji Lived Among Us?

A whimsical ad imagines what life would be like if emoji were real.

Video

Living Alone on a Sailboat

"If you think I'm a dirtbag, then you don't understand the lifestyle."

Feature

The Future of Iced Coffee

Are artisan businesses like Blue Bottle doomed to fail when they go mainstream?

Writers

Up
Down

More in Business

Just In