Magazine Article | February 20, 2018

Republicans Forsake Fiscal Restraint And Market-Based Healthcare

Source: Life Science Leader

By John McManus, president and founder, The McManus Group

In an incredible show of profligacy, Republicans forsook any notion of fiscal conservatism by substantially increasing discretionary spending by over $2 trillion over the next decade, less than two months after cutting taxes by $1.5 trillion over that same time period.

The Bipartisan Budget Act of 2018 busts the budget caps negotiated by then Speaker John Boehner (R-OH) in 2011 when the Republicans retook Congress and declared war on excessive spending. Republicans agreed to $150 billion in extra domestic discretionary spending for the next two years that Democrats demanded, in order to secure that same amount for the military.  But this $300 billion of higher spending will establish a new baseline that will create demands for sustained spending at the level leading to an extra $1.8 trillion over the next 10 years or over $2 trillion when factoring in the increased interest payments for this debt.