We Are Out of Money—But We'll Spend More!

Drudge has the transcript. Relevant quote begins around the 13:20 mark.

Obama: So we have a short-term problem and we also have a long-term problem. The short-term problem is dwarfed by the long-term problem. And the long-term problem is Medicaid and Medicare. If we don't reduce long-term health care inflation substantially, we can't get control of the deficit.

So, one option is just to do nothing. We say, well, it's too expensive for us to make some short-term investments in health care. We can't afford it. We've got this big deficit. Let's just keep the health care system that we've got now.

Along that trajectory, we will see health care cost as an overall share of our federal spending grow and grow and grow and grow until essentially it consumes everything...

Government doesn't invest. The government spends billions of dollars (or trillions) to fix a problem, and the end result is the same problem but more expensive. Health care spending is too high, everyone agrees on that. Obama should be putting forward actual cuts in expenditures now, to lower costs. People will find a way to save, they can do more with less. The idea that government is going to spend more and it will lead to lower costs in the future is a farce, I don't think it has ever happened. The result of his plan will be that even greater cuts will be made in future.