REALITY ENTERS THE WASHINGTON BUBBLE.

The editorial board at Washington's Post offered thoughts on the federal government's fiscal incontinence.  Today, though, we'll mine the essay for a nugget toward the end.

Democrats have demanded that Republicans agree to extend the covid-era insurance subsidies without proposing any way to pay for it. The Congressional Budget Office estimates this will cost $350 billion over the next decade. These temporary benefits were included in the American Rescue Plan of March 2021 and extended the next year in the misnamed Inflation Reduction Act until the end of 2025.

The real problem is that the Affordable Care Act was never actually affordable. President Barack Obama’s signature achievement allowed people to buy insurance on marketplaces with subsidies based on their income. The architects of the program assumed that risk pools would be bigger than they turned out to be. As a result, policies cost more than expected.

To salvage the program, Democrats expanded subsidies to entice more people to buy plans. Many poor families wound up getting insurance for free, and the rolls grew.

Yes, just as regular readers of Cold Spring Shops have known for years.