Borrow Now, Pay Way much later.

Since the COBRA subsidy is coming to an end there is a momentum in Washington to extend it further. You know that COBRA is the federal health insurance program for people who can get insurance through their former employees for 18 months. This extension will be part of the unemployment insurance extension that Congress is considering for the Long term unemployed. The government is paying up to 65 percent of the subsidy for the COBRA with the rest coming from the uninsured.

In my previous posts I am written about how “GREAT” COBRA is but it can be great if the government keeps on subsidizing it. If it does not, COBRA is one of the worst programs out there with no subsidy whatsoever and even higher premiums that one has to pay to keep it. Well anyway, as I was saying if they are going to extend it then the price tag is coming to close to $ 100 Billion (as reported). As usual we will borrow our way to pay this. I have nothing against if the extend it but at what cost? How much borrowing can we keep on borrowing? We should be concentrating on creating good paying jobs rather than keep on having this stimulus spree going on. Not to far away, interest rates will definitely have to rise in order for the government for attract investors to its debt.

This really cannot go on much longer. We need to start taking action and asking our Congressmen (Congresswomen) to support a balanced budget as we try to have a balanced budget in our daily lives.