Board Thread:Watercooler 2.0/@comment-6198648-20130228045108/@comment-6209322-20130719205915

Allow me to specify: the deficit is currently falling, but not because of the Healthcare Bill, or it's implimentation. According to this article, the three key factors fo the decline are:

1.) An improving Economy leads to more businesses making more money, which means the government makes more money through taxes on businesses.

2.) Unpredictedly low use of Social Security Disability and similar sevices by Americans (not a huge impact on this fiscal year, but in future forecasts)

3.) A considerable windfall from Fannie May and Freddie Mac, who are still paying the government back.

Now, the Healthcare Bill is not mentioned as a reason for the fall in the deficit, and in fact, it will increase it. As you are no doubt aware, the Healthcare Bill needs a governmental bureaucracy to make it work effectively, and it is still being set up. Also, one of the fears of this healthcare reform was the additional forms, paperwork, and hassel for small bussiness in order for them to follow the new law, and many small businesses cannot afford it, and may even close down... and should that happen, then you have a weakening or possibly even reversing of the economic growth, and one of the main reasons for the current reduction in the deficit is affected.

As a side note, I am sure you understand the difference between the deficit and the debt -- even though the deficit is projected to go down (all assuming that the economy continues to grow, which may not be the case), the debt will continue to grow -- even if the deficit can be brought down to only one billion dollars annually, the debt will continue to compile, and the interest will continue to be added, and we still have the problem. The only way to stop the debt from increasing is to start paying off more and more of our premium, instead of the interest. That will require not only a complete elimination of the deficit, but in fact a surplus annually in the budget. Before that happens, we delay the inevitable, and we will soon go down the path of the closest large city that I reside near (Detroit).