Thomas Sowell to Newsmax: CBO Should Be Abolished (Video interview)

NewsMax ^ | March 15, 2012 | David A. Patten

[jazusamo]

VIDEO AT LINK

Conservative economist Thomas Sowell is calling for the abolishment of the Congressional Budget Office (CBO) after it revealed this week that Obamacare may cost American taxpayers nearly twice the $940 billion it originally estimated -- $1.7 trillion over the next decade.

“I think occasionally the CBO does something that’s useful,” Sowell told Newsmax.TV in an exclusive interview. “But by and large, I think it should be abolished.”

In September 2009, President Obama estimated healthcare reform under the Patient Protection and Affordable Care Act would cost an additional $900 billion over 10 years. The CBO initially projected the cost at $940 billion.

Adding insult to injury, the CBO’s latest projections also indicate that some 3 million Americans will lose their employer-based insurance coverage. This comes despite the repeatedly assurances of the president and others that they would be able to stay on their current employer-based policies, if they wished to do so.

In the interview, Sowell says it is time to seriously consider whether the CBO has outlived its usefulness.

“It’s one of a number of federal agencies that give the public a sense of assurance in things where there is no assurance,” said the award-winning economist, who recently released a revised edition of his book “Intellectuals and Society.”

Sowell has long favored free markets, and objects to the tendency to prescribe and control consumer behaviors. He contends that bureaucracies often try to pick winners and losers in markets they are ill-equipped to understand.

[jazusamo]

*PING*
Thomas Sowell

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[stephenjohnbanker]

How could the CBO make a mistake by half? Answer: Obama got to them, that’s how.

[jazusamo]

No question that you’re correct, Obama does just as he pleases.

[BlatherNaut]

How could the CBO make a mistake by half? Answer: Obama got to them, that’s how.

And only by half IF the latest projections are accurate. Judging by past performance, they're probably low-balling again.

[rockinqsranch]

Thanks for that Jaz.

[KarlInOhio]

One problem is that they had to follow the way Obamacare was written with benefits kicking in 4 years after the taxes start, so it was 10 years of tax covering 6 years of payments. It is now three years later so it is 10 years of taxes covering 9 years of payments. I don't know whether the CBO is the main source of error, or if it is the (at the time) Democratic Congress gave them intentionally bad numbers and made them play "let's pretend".

[sickoflibs]

This became obvious to me last year, The CBO always bases it's calculations on incorrect and usually dishonest assumptions manufactured by those in Washington to sell something good for them. It's work is politically useful, practically useless.

It is always used to justify something with years out predictions, so politicians can cut taxes while increasing spending NOW to get re-elected while claiming it will all be pay for itself 2 to 5 congresses in the future, based on CBO estimates. Other times they overestimate tax increases revenues and always underestimate program costs.

[GOPJ]

Adding insult to injury, the CBO’s latest projections also indicate that some 3 million Americans will lose their employer-based insurance coverage. This comes despite the repeatedly assurances of the president and others that they would be able to stay on their current employer-based policies, if they wished to do so.

It'll be more than 3 million - the incentives for businesses to dump health insurance are overwhelming under ObamaCare.

The 'you can keep your health insurance' lie was based on an earlier untruth - that companies wouldn't figure out how much they 'save' by going along. Soon the only people with good health care - and insurance - will be government workers and union goons.

[stephenjohnbanker]

“It is always used to justify something with years out predictions, so politicians can cut taxes while increasing spending NOW to get re-elected while claiming it will all be pay for itself 2 to 5 congresses in the future, based on CBO estimates. Other times they overestimate tax increases revenues and always underestimate program costs.” Standard Operating Proceedure.

[stephenjohnbanker]

Yep.....figure 2 TRILLION +......and THAT might be low.

[stephenjohnbanker]

I vote for “let’s pretend”

[ding_dong_daddy_from_dumas]

Do you remember when the CBO initially came out with unfavorable numbers for Obamacare, and Obama was so angry about it? Hannity seized upon that temporary report, and kept repeating, “The CBO is the Gold Standard.”

And I thought, “You idiot! What are you going to say when they swallow Obama’s phony numbers later?”

[stephenjohnbanker]

Hannity I quit listening to 10 years ago. CBO is “Gold standard” ?

This is why : )

[ding_dong_daddy_from_dumas]

Hannity I quit listening to 10 years ago. CBO is “Gold standard” ? This is why : )

I mostly quit, but might watch part of the TV show if Michelle Malkin is on. Geraldo just about got her banned from Fox, but she makes appearances from time to time.

[TheOldLady]

Thanks for the scary ping. I agree with Dr. Sowell, as usual.  

[Cyman]

I fell in love with the CBO when they came out with a study that showed “preventive care will contribute to the costs of healthcare not reduce them”.

[stephenjohnbanker]

I quit watching FOX in 08. I got sick of AMNESTY Barnes, and the final nail was how happy Krauthammer was the night Obama won. I get my news from the net, and FR.

[stephenjohnbanker]

Sowell has only been right 99.98% of the time.....room for improvement : )

[jazusamo]

Sowell has only been right 99.98% of the time.....room for improvement

LOL!

Dang! And I thought Dr. Sowell was perfect. :-)