The Medicaid Ticking Time Bomb – A Budget-Gobbling Fiscal Disaster



The burden of government spending is already excessive. But the numbers will get worse with the passage of time if policy is left on autopilot.

The main culprits are the so-called mandatory programs. Entitlements such as Social Security, Medicare, Food Stamps, and Obamacare that automatically dispense money to various constituencies are consuming an ever-larger chunk of the economy’s output.

And if you want to be even more specific, the fastest-growing entitlement program is Medicaid, which was originally supposed to be a very small program to subsidize health care for poor people but has now metastasized into a budget-gobbling fiscal disaster. Arguably, it’s the entitlement program most in need of reform.

So how big is the problem? Enormous if you look at the numbers from the National Association of State Budget Officers.

“States increased their spending in fiscal year 2015 by the biggest margin in more than 20 years, but most of the increase was thanks to huge leaps in Medicaid spending under the first full year of the Affordable Care Act (ACA). Spending increased last fiscal year, which ended on June 30 for most states, by 7.8 percent, according to new estimates from the National Association of State Budget Officers (NASBO). It’s the biggest boost since 1992 and was thanks to a 15.1 percent increase in Medicaid spending, much of that paid for via federal Medicaid funds. Illinois, Michigan, Kentucky, Nevada and Oregon saw more than 30 percent increases in federal funding because they expanded Medicaid under the ACA. But 2015 was also a year where states were putting up more of their own money again.”
Here’s the chart showing which outlay categories grew the fastest.


The article points out that spending is outpacing revenue.

“On average, state revenues aren’t keeping pace with spending; NASBO estimates General Fund revenues will increase by just 3.8 percent.”
Though the real problem is that spending is expanding faster than the private sector, which is the opposite of what is called for by my Golden Rule.

One of the reasons Medicaid grows so fast is that the program is split between Washington and the states, which both picking up a share of the cost. This may sound reasonable, but it creates a very perverse incentive structure since politicians at both levels can vote to expand the spending burden while only having to provide part of the cost.

The National Center for Policy Analysis explains how this system produces bad decisions.

“Medicaid has a horrible financing mechanism: Federal transfers to states are not based on the number of poor people, or any other reasonable calculation. Instead, they depend on the amount of its own taxpayers’ money a state spends. Traditionally, when California spent $1 on Medi-Cal, the federal government kicked in $1. … So, state politicians hike taxes and spending on their own citizens in order to get as much funding as possible from people in other states (via the feds). Hospitals and Medicaid MCOs maximize this by agreeing to a state tax on themselves, which the state uses to ratchet up the federal funding. After multiplication, the money goes right back to these providers. … Stopping this wild spending growth requires fundamental reform to Medicaid’s financing. Congressional Republicans have proposed ‘block grants,’ whereby states would get federal Medicaid transfers based on their population of poor residents, not how much they gouge out of their own people.”

CLINTON: Give Detroit Jobs To Syrian Refugees…


In a previously little-noticed video from February at the Clinton Global Initiative, former President Bill Clinton suggested that the U.S. use Syrian refugees to rebuild Detroit.

“The truth is that the big loser in this over the long run is going to be Syria. This is an enormous opportunity for Americans,” Bill Clinton said about the Syrian migrant crisis.

Detroit has 10,000 empty, structurally sound houses—10,000. And lot of jobs to be had repairing those houses. Detroit just came out of bankruptcy and the mayor’s trying to do an innovative sort of urban homesteading program there. But it just gives you an example of what could be done. And I think any of us who have ever had any personal experience with either Syrian Americans or Syrian refugees think it’s a pretty good deal.

It is unclear from the video why Clinton seems to think it would be better to fill these Detroit jobs with imported foreign migrants rather than unemployed Americans already living there, who could perhaps benefit from good-paying jobs.

In the video, Clinton discusses the migrant crisis with billionaire and mass migration enthusiast Hamdi Ulukaya of the Chobani yogurt empire.

Ulukaya has become a figure of controversy for his decision to fill his yogurt plants with foreign refugees rather than unemployed Americans. At the World Economic Forum in Davos earlier this year, Ulukaya encouraged other global elites to follow his lead.

The unearthed video seems to underscore Donald Trump’s recent declaration that, “Hillary Clinton would rather provide a job to a refugee from overseas than to give that job to unemployed African-American youth in cities like Detroit who have become refugees in their own country.”

Hillary Clinton has called for a 550 percent expansion to the importation of Syrian refugees. Based on the minimum figures she has put forth thus far, a President Hillary Clinton could potentially import a population of refugees (620,000) that nearly equals thepopulation of Detroit (677,116).

Trump has previously explained that, “for the amount of money Hillary Clinton would like to spend on refugees, we could rebuild every inner city in America.” According to a September 2015 Rasmussen survey, 85 percent black voters oppose Clinton’s refugee agenda to admit more than 100,000 Middle Eastern refugees—with less than one percent of black voters (.56 percent) in favor of her refugee plan.

Yet during the Clinton Global Initiative discussion, Bill Clinton seemed to suggest that the U.S. ought to accept more Syrian refugees—on top of the tens of thousands of refugees the U.S. already admits annually from other nations across the globe. In particular, Clinton praised Turkey for having taken in 2 million Syrian refugees.

“Turkey, as you probably know, has by far the largest number of Syrian refugees—there are more than 2 million there,” Clinton said.

“The Turks have done a really admirable job of taking in all these refugees,” Clinton said later in his remarks.

“In the last two years, 24 percent of all the new businesses started in Turkey were started by Syrian refugees. I mean, these people are incredibly gifted and very hard working,” Clinton added.

Clinton did not mention the fact that, in the United States, 91.4 percent of recent refugees from the Middle East are on food stamps, and 68.3 percent are on cash welfare, according to data from the Office of Refugee Resettlement in the Department of Health and Human Services.

During the discussion, Ulukaya seemed enthusiastic about the potential transformation of entire communities that could result from large-scale immigration.

“There’s a town actually in the eastern part of Turkey, it’s called Kilis, [where] sixty percent of the whole town is refugees. I mean, this all happened in the last three, four years,” Ulukaya said, noting earlier in his remarks that, “I’m proud of what the people of Turkey and what people in the government are trying to do on this issue. It’s huge.”

Clinton suggested that it’s “important” to focus on the entrepreneurship of Syrian migrants rather than address the public’s opposition to the importation of large numbers of refugees from terror-prone regions of the world.

I know what caused all the fear and reluctance. It was Paris. Because 6,000 people went from Europe to ISIS-land, [and] about 1,500 came home. If one percent of them was radicalized then sort of sneaked back in with evil intentions, that’s about how many people it took to kill all of those people in Paris. So people are thinking like that, but the tradition of the Syrians is amazing…

Clinton apparently did not feel it necessary to in any way answer these concerns, other than to simply insists that Syrians are “amazing”. Nor did Clinton address the fact that — as the Chairman of the House Counterterrorism and Intelligence Subcommittee hasexplained — there is “no real way of vetting, to any extent, these refugees coming in.”

To bolster his argument about the entrepreneurial spirit of Middle Eastern refugees, Clinton cited some personal anecdotes.

For instance, Clinton noted that he has a friend working with the IRC who filmed and asked “several thousand” Syrians arriving in Turkey “literally coming off the boat… ‘What were you doing before you left your home?’ And they were overwhelmingly small business people, workers, and not a small number of professionals,” Clinton said.

Clinton later added: “In America… the largest Syrian settlements are in Cleveland, [Ohio] and Dearborn, Michigan. And if you went up there and said something bad about them, you could get in a fight—not with a Syrian—but with someone who’s Irish or African American or Hispanic or Polish because they are such a part of the community. They have made such amazing contributions.”

Clinton did not address any of the cultural or national security challenges that have accompanied large-scale migration from predominantly Muslim third world nations into these American communities in Michigan and Ohio.

When Clinton asked Ulukaya how many refugees should be brought into the U.S., Ulukaya did not answer specifically, but pointed to the work that Germany has done in accepting large flows of refugees. Trump has previously warned that “Hillary Clinton wants to be America’s Angela Merkel”. Ulukaya said:

I listened to Madeleine Albright the other day… She said, you know, we’re not doing enough. And I was in Germany just after. Looking at Hamburg, Hamburg took almost 90,000 refugees. And I was with the mayor and for two days we looked at the refugee centers [and] what they did. They were prepared to take 500-600, you know, that’s what they were doing for years. Now they took 90,000.

Neither Bill Clinton nor Ulukaya mentioned the fact that the U.S. already takes in 70,000 refugees annually — on top of the additional thousands of Syrian refugees President Obama and House Speaker Paul Ryan pushed to resettle in the country this year alone.

During the discussion, Ulukaya boasted about how he has “11 different nationalities [represented] in Chobani factories” and how he had to hire “11 different translators into the factory” because the local company employees couldn’t communicate with one another.

“Every summer, we do our Chobani picnic and, you should see, it’s [like the] United Nations in there,” Ulukaya proudly declared about his U.S.-based company.

Ulukaya explained that Syrian refugees “bring flavors to the community just like in… Twin Falls, [Idaho]” where Ulukaya’s yogurt factory is based.

As Leo Hohmann has previously reported, “the state of Idaho, despite its reputation as a mostly white, conservative farm state, has been a popular destination for refugees in recent years”— in large part due to Ulukaya’s efforts to import refugees to work in his yogurt factory.

“Ulukaya opened the world’s largest yogurt factory in Twin Falls about two years ago, and the plant now employs 600 people with about 30 percent of those jobs filled by foreign refugees shipped to the U.S. from United Nations camps in the Middle East and Africa,” Hohmann writes.

Twin Falls is in line to receive about 300 refugees this year, many of them Muslims from Syria… The U.S. State Department has shipped more than 11,000 refugees directly from the Third World to Idaho since the Sept. 11, 2001, terrorist attacks. Just in the past year, 989 refugees have arrived in the rural state, most of them landing in either Boise or Twin Falls. Nearly half have come from some of the world’s nastiest jihadist hot zones, including 95 from Iraq, 94 from Somalia, 47 from Sudan, 39 from Afghanistan, 31 from Iran, 28 from Syria and 11 from Pakistan, according to the federal refugee database.

In recent months, the mass importation of refugees has become a topic of controversy in Idaho— as American communities have struggled with some unique assimilation challenges posed by large-scale migration from the Third World.

In June, Iraqi and Sudanese refugees allegedly sexually assaulted a five year-old American girl in Twin Falls, Idaho. According to allegations, one refugee attempted to anally and orally penetrate the five-year-old, in addition to urinating on her, while another refugee watched and filmed the assault.

In an interview with Breitbart News, the father of the American girl said he had watched thirty seconds of the tape:

Thirty seconds showed them in the laundry room, they pulled my daughter around, pushed her up against the wall, pulled her pants off, he dropped his pants, he was trying to get her from behind… after that… [he] tried doing the front… oral [sex] with her, he shoved it in her mouth…He peed all over her in her mouth, all over her body, her face, head… [he] defiled her.

Then in August, an African refugee, Mohammed Hussein Elda, allegedly trapped and sexually assaulted a 33 year-old mentally disabled woman in Twin Falls, Idaho.

In order to deal with some of the challenges to assimilation, the Office for Idaho Refugeesproduced a brochure to help American employers who are looking to hire refugees and need assistance in dealing with the cultural differences of new arrivals from the third world.

The brochure recommends, in some cases, avoiding eye contact with migrant employees, which for Burmese migrants can be “considered an act of challenge”. The brochure also recommends avoiding discussion about employee’s female family members, which to Afghan migrants can be seen as “an act requiring revenge”.

Clinton concluded the CGI discussion by praising Ulukaya for his work in Twin Falls and urged other CEOs present at the Clinton Global Initiative to follow Ulukaya’s example. “We need more companies like this,” Clinton said.


CAIN: “When you talk about having less jobs than seven years ago, you have even less in the black community. When you talk about more people on food stamps, you have even more people on food stamps in the black community. This is what Trump is saying you’ve got to address. And you address it with economic prosperity. Not with economic stagnation which is what Hillary, who is Obama 3.0 want to bring to America.”

Related links


Trump or we are finished.
g bridgman

Blacks need to understand that, too.
Archie Alexander

Very good for Herman Cain for telling it like it is.
g bridgman

Herman Cain is a well informed leader that the black community should look up to and listen to instead of calling people such as him “Uncle toms.”

Debra Hargrove

Based on history, the Democrats are the creator of the KKK, Jim Crow, and Black American Slavery. That alone tells you the mentality, the thinking and true feelings of the members and leaders of the Democratic Party. To me, they sound like they are an Anti-Christ group. Why? Because they do not represent the Fruits Of God’s Spirit. Galatians 5:22-23 But the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness, and self-control. Against such things, there is no Law.…

Welfare Moochers FURIOUS After THESE Signs Posted At Grocery Stores

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A lot of Obama supporting welfare moochers are furious over some special signs that are popping up at Wawa grocery stores in Philadelphia.

The signs tell the leeches that their stores are no longer going to be accepting food stamps and to GET A JOB! Lol, too funny but TRUE!

“We are no longer accepting EBT. Please use cash or credit. If you do not have cash or credit then maybe it’s time to get a job.”

The signs were posted on The Philly Offensive Facebook page and is already going viral! Almost 6,000 people have liked it this week and people are sharing it because they are sick and tired of welfare peasants who refuse to work and just live off of us hardworking taxpayers.

Lol. They are getting some hate from people that are on welfare. I should note that the Facebook page that posted this is an entertainment site so this was just a harmless prank.

Obviously not everyone that receives help from the government (you and I) is gaming the system of course. I have no problem helping the needy.

But the fact remains that there are millions of perfectly able-bodied, healthy people that would rather live for free instead of working.

To those people I say- GET A JOB!!!

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If Everything Is So Great, Then Why Do Two-Thirds Of Americans Say The Country Is On The Wrong Track?

Only 23.1 percent of Americans believe that we are headed in the right direction.

Michael Snyder | End Of The American Dream

Americans appear to be increasingly pessimistic about the future of America.

According to a Real Clear Politics average of recent polls, 68.9 percent of Americans believe that the country is on the wrong track, and only 23.1 percent of Americans believe that we are headed in the right direction. But if you have been listening to the endless parade of political speeches at the Democratic and Republican National conventions, you would be tempted to think that the greatest days for the United States are right around the corner. The politicians keep promising us that better times are coming if we will just make the “correct” choices on election day, but no matter who we send to Washington D.C. things just seem to keep getting worse and worse. Let’s take a look at just a few of the signs that indicate that our country is going in the wrong direction…

-The rise in violent crime: We haven’t seen crime rise this rapidly in our major cities in a very long time, and according to a report that was just released this week many forms of violent crime are way ahead of where they were at this time last year…

A new report published by the Major Cities Chiefs Association said that violent crime – homicides, rapes, robberies, assaults and shootings – is on the rise nationwide.

The troubling results, though just one survey, could provide vindication to Republican presidential candidate Donald Trump. President Barack Obama has contested Trump’s assertion– made prominently in his nomination acceptance speech last week – that crime is a national epidemic and major problem.

The mid-year violent crime survey, released Monday, shows 307 more homicides so far in 2016, according to data compiled from 51 law enforcement agencies from some of America’s largest cities, including Chicago, Los Angeles and New York. There have also been 1,000 more robberies, approximately 2,000 more aggravated assaults, and 600 more nonfatal shootings in 2016 compared to this time in 2015.

-Police officers are being shot at a staggering rate: The number of police officers shot in the United States during the first half of 2016 was up 78 percentcompared to the exact same time period last year.

-Mass shootings: In just the past few weeks we have seen the worst mass shooting in U.S. history in Orlando, and there were mass shootings of police in Dallas and in Baton Rouge.
-The U.S. economy continues to crumble: We just learned that orders for durable goods fell again in June, Gallup’s U.S. economic confidence index just hit the lowest level so far this year, and at this moment 43 million Americans are on food stamps.

-The U.S. consumer appears to be increasingly tapped out as the middle class shrinks: Most of the country is living paycheck to paycheck these days. One recent survey found that 62 percent of all Americans have less than $1,000 in savings, and U.S. News & World Report is reporting that some analysts are projecting that we are heading for a “restaurant recession”…

Analysts are forecasting a “restaurant recession” in the U.S., which is bad news for America’s food and drink establishments and potentially even worse news for the economy at large.

Paul Westra, a senior research analyst at Stifel Financial Corp., said in a research note Tuesday that he’d turned “decidedly bearish” on the restaurant industry, downgrading Stifel’s stance on 11 different restaurant stocks, including Chipotle Mexican Grill, Panera Bread and Cheesecake Factory.

He and his colleagues now “confidently believe” that the weak restaurant consumer spending seen in the second quarter of the year “reflects the start of a U.S. restaurant recession.”

-Business is not booming: The total amount of stuff our businesses have been selling has been declining since mid-2014, and it is being projected that corporate earnings will be down for a fifth consecutive quarter. Earlier today, we learned that our biggest aircraft manufacturer, Boeing, has reported its first quarterly loss in nearly seven years.

Government debt continues to explode: The U.S. national debt has hit a staggering 19.4 trillion dollars, and we have added an average of more than 1.1 trillion dollars to the debt since Barack Obama has been in the White House.

-Our politicians just continue to go from bad to worse: If you thought that the Obama years were bad, just wait until you see what Hillary Clinton can do. The woman that the Democratic Party just nominated for president of the United States is one of the most evil, wicked and corrupt politicians the nation has ever seen.

-Everywhere you look, evil is exploding: The social fabric of our nation is coming apart all around us, and most of our men are hooked on pornography…
A 2014 national survey commissioned by the organization found one-third of men ages 18-30 admitted they are either addicted to porn (23 percent) or are unsure if they are addicted (10 percent).

“According to our survey, over one-half (52 percent) of men age 18-30 admit to risking their careers and livelihood by viewing porn at work within the past 3 months,” Hesch told WND. “The numbers are even higher for men ages 31-49, with nearly three-fourths (74 percent) watching porn at work.”

-Sadly, most Americans are way too addicted to entertainment to bother noticing that our nation is rapidly going down the toilet: In America today, millions of people would rather spend endless hours playing video games such as Pokemon Go on their phones rather than getting involved in their communities. And it is difficult to say that we even have “communities” anymore when most people spend far more time online than in face to face interaction with others. If you can believe it, one recent survey found that half the population of the United States and Canada uses Facebook at least once a day.

I could go on and on, but hopefully you are getting the point.

The average American spends more than five hours a day watching television, and the television is telling them that everything is going to be just wonderful and that they should go out and vote for Hillary Clinton because she would be the first woman president and that would make history.

Meanwhile, our society is falling apart in literally thousands of different ways, and most Americans know deep inside that our country is deeply, deeply broken. That is why more than two-thirds of us tell the pollsters that America is on the wrong track. Virtually all of us know that something is seriously wrong with the United States, even if we can’t always agree on what the solutions should be.
Let us work very hard to wake our fellow Americans up while we still can, because time for turning this country in the right direction is rapidly running out.