The article states that during the remainder of President Obama’s term, the deficit should shrink. That is the good news. However, all of the news is not good.
The article reports:
…The bad news is the deficit begins spiking again in 2017, the year Obama’s successor will be sworn into office, before returning to $1 trillion a year in 2025.
All that red ink comes without another Great Recession, with the country’s biggest wars supposedly ending, without any new big-ticket spending items.
The article explains the reason for the increasing deficit:
Medicaid spending will be double what it was when Obama took office, thanks in part to Obamacare. Spending on the health care exchanges, a mere $15 billion in 2014, will be just under $100 billion annually in only two years.
Between 2016 and 2025, the Obamacare Medicaid expansion will cost $920 billion and $1.1 trillion on health insurance subsidies. That’s a rounding error away from $2 trillion.
…The baby boomers’ retirement isn’t Obama’s fault. The fact that the major federal retirement programs are all still structured the way they were for the baby boomers’ parents and grandparents is partly his fault. And the costs of Obamacare are almost entirely his fault (Congress deserves its share of the blame too).
It is very obvious that the first step to solving this problem should be to abolish ObamaCare and return healthcare and health insurance to the private sector. That will not solve the entire problem, but it would be a big step forward. Let’s see if the new GOP majority in Congress is willing to do that. If not, it’s time to elect a different GOP majority.