Obama's Political Capital Evaporates Over Health Care Proposal

First of all, it needs to be pointed out that Katie Couric completely misspoke - not 5 seconds into CBS's coverage of the "Presidential News Conference" concerning the budgetary impact of Obama's health care proposal. She clearly stated that the CBO estimated the proposed bill would increase Uncle Sam's budget deficits by $237B over 10 years. Ms. Couric: you were over $800B short, and we can't be certain whether or not it was intentional. *7/23/09 Clarification: We've received questions about this point. Technically, $237B is the figure provided in the CBO director's report as the projected deficit impact - <$1Trillion is the total cost. Our point though is that if we can't pay for the programs currently in place, won't $1Trillion in spending over the next ten years be Entirely Deficit Spending?

Second of all, this health care proposal is done; it has been killed, stonewalled, stymied - or whatever your word of choice may be. We're not sure whether President Obama has personally admitted to this yet - in secret that is - but the bill took two direct blows that it ultimately will never be able to recover from. Dagger #1 was the CBO's revelation that the proposal will add >$1Trillion to the deficit over ten years. Dagger#2, and the finishing blow we might add, was the strategic Democrat blunder that was the proposed "surtax" on families at certain income levels to help pay for the reform. This was a politically inept move by the more liberally inclined members of the Party, who for some reason forgot that a large portion of their newly achieved majority in Congress was provided courtesy of traditionally Red districts. The Democrats who were recently sent to Congress by these wealthier districts did not possess a mandate to increase their constituents taxes; quite to the contrary, many center-leaning Republicans voted in favor of a Democrat last November based upon that Party's promise to restore fiscal discipline to the nation. That has not happened.

Ultimately, we are not sure why Obama has chosen to conduct tonight's "press conference". The President is literally putting all of his political capital on the line; all in pursuit of an agenda that, in all likelihood, will not succeed. This bill will be stalled, and will either never come to a vote, or will remain in limbo while Congress takes it's cherished "recess". While Congress is in recess, this proposal will be torn to shreds by special interest groups. There is little to no chance of success; we are quite sure of it. Sphere: Related Content