BuckeyeBlog

As the editors of the Cleveland Plain Dealer point out here, Medicaid’s burden on Ohio’s taxpayers is growing:

Medicaid enrollment by Ohioans has risen by 27,488 people since July 1, with roughly 16 percent of the new patients in the most expensive category (elderly, blind or disabled).

Thus, overall Medicaid spending is up sharply. From July 1 through Oct. 31, Ohio spent $3.97 billion on Medicaid. For the 2007 period, the tab was $3.62 billion. That’s a 9.7 percent increase — and a cold welcome for spenders’ letters to Santa Claus, care of Strickland’s Statehouse workshop.

This shouldn’t come as a surprise to anyone. I predicted as much here:

Expanding Medicaid can lead to large increases in Medicaid spending when states can least afford it – during recessions. Ohio saw this earlier this decade when Medicaid spending increased dramatically during the recent recession. Spending grew at 11 percent annually during 2001 and 2004, squeezing other budget priorities at a time when the state was seeing reduced revenue. Expanding Medicaid now will only repeat this cycle during the next recession.

That “next recession” is now. Of course, the expansion pushed by the governor and approved by the General Assembly last year has been stalled by the federal government. Imagine what Medicaid would be costing if it actually took effect. We may not have to imagine, as Governor Strickland is pushing the feds to approve the expansion. When Senator Obama assumes the Presidency, it’s likely that Strickland will get his wish. That means even higher Medicaid spending next year.

This article via Glenn Reynolds is a nice one about Freddie and Fannie. I’ve been being warned about this since I started as a newspaper reporter in 2000 for a small business paper. It’s a bit tricky; both that professor that bent my ear and Bainbridge are at risk of the stopped clock scenario; they’re right twice a day, etc. (How’s that for an anachronism).

The real issue Bainbridge touches on at the end: Freddie and Fannie can go to pot, as people have been predicting for 20 years or more they would. What’s really going to happen, though, is that with all the nonsense about Medicare, Medicaid, Social Security and a list that is literally endless, since our great politicians, Democrat and Republican alike, want to add to it every day, the American government itself is going to be recognized as a fraudulent bankrupt.

It’s not an if. It’s a when.