IMF to UK: Universal Health Care Unsustainable
While Pres. Obama and Congress go merrily about their way cramming some sort of government funded and controlled health care down the throats of an American public who doesn’t want it, the IMF is sending drastic warnings to Britain about its system:
Gordon Brown was warned last night to raise the retirement age above 65 and introduce NHS charges to tackle the soaring state deficit.
In a devastating intervention, the International Monetary Fund called for radical changes to the pension system and spending cuts that go far beyond the plans outlined by the Prime Minister this week.
The global watchdog said root and branch changes to public sector spending would be necessary to ‘help keep a lid on the debt’ and restore financial stability.
The IMF’s broadside is highly unusual ahead of an election and reflects grave concern at the debt mountain built up by the Brown government.
Oliver Blanchard, the IMF’s top economist, told a press conference at a joint annual meeting with the World Bank that the next British government will ‘have to take measures that improve the medium-term debt outlook’.
He added: ‘That means reforms of the retirement system, that means reform of the healthcare system.’
Mr Blanchard said reform was vital, adding that it would be ‘a joke’ if the Government settled instead for new fiscal rules that might be torn up at times of crisis.
The IMF estimated that by next year Britain’s debt will represent 81.7 per cent of output.
Even with planned cuts and tax increases, it predicted a figure of 98.3 per cent by 2014.
Supporters of ObamaCare will try to differentiate the crumbling NHS system, and the IMF’s prescription for it, by pointing out that the bills proposed here would require premium payments for health insurance. But that ignores the (highly front-loaded) $900 Billion price tag vaunted by the president himself which, when added to the costs of the already bankrupt Medicare and Medicaid programs, will balloon far beyond anything being promised. Combined with the also bankrupt Social Security system that is about to see a lot more beneficiaries come of age, the “Stimulus”, bailout funds, and whatever other pet projects the government finds to waste our tax dollars on, it’s difficult to see how we can avoid a similar diagnosis to that of the UK.