December 23, 2009

Speaking of Magic Beans and the Doc-Fix...
— Ace

Kaus links this fine article at Reason.

"The budget," said Will Rodgers, "is like a mythical bean bag. Congress votes mythical beans into it, then reaches in and tries to pull real ones out." And the Congressional Budget Office (CBO), the non-partisan office tasked with generating official price tags for legislation, is the agency responsible for helping Congress count those mythical beans. But as the health care debate has progressed throughout the year, Congressional Democrats have become far more adept at getting the CBO to count the beans just the way they want.

...

[The] Democrats became more skilled at manipulating the CBO's scoring process. Indeed, they have become so skilled at getting what they want out of the CBO that the office has taken to including strongly worded warnings that the various bills' real costs may not actually match their estimates.

In the House, Democrats shifted an expensive, unpaid-for "fix" to doctor's Medicare reimbursement rates over to a separate bill. And in the Senate, they backloaded the spending so that its full effects would not be felt in the 10-year window that CBO scores. In the latest Senate bill, 99 percent of the spending would occur in the last six years of the budget window.

Nor do the scores count the cost of state level Medicaid expansions—$25 billion in the Senate's bill—or of the private sector mandates it imposes, which, according to Michael Cannon, a health policy analyst at the Cato Institute, could add an additional $1.5 trillion to the total.

The bigger issue is that in budgeting, there are multiple realities available: The various scores put forth by the CBO are based on what might be called "legislative reality"—a fictional world in which there are no changes to current law except the bill under consideration, and new legislation is executed to the letter. That means CBO scores are not permitted to reflect political reality—the understanding that what a law says Congress will do in the future is not necessarily what Congress will actually do.

Knowing this, Democrats have concocted legislation that ignores the relevant facts of political reality and instead skews legislative reality, which is based not on honest expectations but on the promises made in legislation, in their favor.

Read the whole thing. The only thing the CBO can do about this is issue strong warnings that if the supposed legislation they're scoring is not followed strictly to the letter, and if Congress does not restrain itself from passing related spending packages in a supposedly "different" bill, the real-world costs will far exceed their "estimates."

Which is what they keep doing, actually -- the know the Democrats are playing games with the rules and compelling them to report lies as honest numbers.

Not that the media tells you this, of course. They just keep reporting "$132 billion in savings over ten years!" They keep forgetting to report the CBO's increasingly stern warnings that their scorings have less and less relationship to fiscal, or even physical, reality.

Posted by: Ace at 11:09 AM | Comments (13)
Post contains 512 words, total size 3 kb.

1 What a bunch of Butt Sniffers.

Posted by: Rocks at December 23, 2009 11:14 AM (Q1lie)

2 Pay no attention to the man behind the curtain.

Posted by: The Wonderful Wizard of Oz at December 23, 2009 11:15 AM (xxgag)

3

Posted by: The Wonderful Wizard of Oz at December 23, 2009 11:15 AM (xxgag)

4

Fantasy = Reality

Slavery = Freedom

Hate = Love

Fiction = Truth

and we've always been at war with Afghanistan

Posted by: Truman North at December 23, 2009 11:19 AM (e8YaH)

5 That 132 billion in savings is calculated on 10 years of taxes and only 6 years of expenditures. What are the deficit ramifications for 10 years of each?

Posted by: Dr. Spank at December 23, 2009 11:20 AM (muUqs)

6 5 That 132 billion in savings is calculated on 10 years of taxes and only 6 years of expenditures. What are the deficit ramifications for 10 years of each?"   Unicorn.

Posted by: B. Obama at December 23, 2009 11:22 AM (SqAkN)

7 IIRC, CBO estimates also don't take into account the likely real world effects of the legislation on revenues.

In other words, tax the "gold-plated" healthcare plans, and instead of collecting extra revenues, you just end up eliminating the "gold plated" plans.

Give people "free" insurance plans, and suddenly their healthcare utilization will mushroom way past projected estimates of "need" based on demand under the status quo.

Etc.



Posted by: looking closely at December 23, 2009 11:25 AM (PwGfd)

8 Or maybe that should be Unicorn2?

Posted by: B. Obama at December 23, 2009 11:28 AM (SqAkN)

9 I expect my next visit to the bank to go something like this:

Bank President of Oz:  Congresscritters have one thing you haven't got: a CBO analysis. Therefore, by virtue of the authority vested in me by the Universitartus Committiartum E Pluribus Unum, I hereby confer upon you the honorary degree of Solvency.  And a million dollar, low interest, fix rate, unsecured loan due and payable in one hundred years.

Posted by: WalrusRex at December 23, 2009 11:28 AM (xxgag)

10 Not that the media tells you this, of course. They just keep reporting "$132 billion in savings over ten years!" They keep forgetting to report the CBO's increasingly stern warnings that their scorings have less and less relationship to fiscal, or even physical, reality.

Sorry bucko, but our reality is the real reality.

Posted by: Charlie Gibson at December 23, 2009 12:30 PM (RykTt)

11

Lies. Their entire lives are built upon lies.

What's it like when you're a liar and all your best friends are liars, too?

And all of you know it.

Do you just sit around telling each other lies while pretending to believe one another?

What's it like to be so dirty that you don't trust a single human being ... because you assume that everyone else is just as much of a shit as you are?

Posted by: Warden at December 23, 2009 12:52 PM (QoR4a)

12 Do they care?  Probably not.  It's all a game to them.

Just wait until they actually DO destroy capitalism and realize they have no money to fund their pet projects because they've killed the goose laying the golden eggs.  When the dirty masses are no longer getting their freebies, they will rise up and smite the dirty legislators who made the empty promises and through cat-eating-mouse smiles told the lies that created the bonds of indentured servitude imprisoning those masses - and their children and grandchildren.

Posted by: Angie at December 23, 2009 01:50 PM (PWw46)

13   I heard someone on the radio using the CBO numbers to claim that the Great Health Care Takeover Bill would cut the deficit and the first thing to come to my mind was the AGW crowd and their "peer reviewed publications" bullshit. God, I pray that I am not the only one.

Posted by: Donavon Pfeiffer at December 24, 2009 11:45 AM (VP71t)

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