Tuesday, June 19, 2012

5 Reasons Why ObamaCare Is Bad Law

By Jared Allebest
Conservative Samizdat

Robert Samuelson has written an article for the Washington Post giving his 5 reasons why ObamaCare is bad law. Here are his five reasons:


(1) It increases uncertainty and decreases confidence when recovery from the Great Recession requires more confidence and less uncertainty. The ACA isn’t highly popular; the Kaiser Family Foundation finds that 44 percent of Americans now view it unfavorably and 37 percent favorably. Given the ACA’s complexities, people can’t know where they’ll get insurance and what it will cost. In 2014, the ACA requires all employers with 50 or more full-time workers to provide insurance or pay fines (“the employer mandate”). On the one hand, formal economic studies conclude that most employers now offering insurance will continue to do so; on the other, in direct surveys of firms, 30 percent or more say they might drop insurance and pay fines. Uncovered people must buy insurance (“the individual mandate”) or face penalties, though government will subsidize households with incomes up to four times the poverty level ($92,200 for a family of four in 2012).


(2) The ACA discourages job creation by raising the price of hiring. This is basic economics. If you increase the price of labor, companies will buy less of it. Requiring employers to buy health insurance for some workers makes them more expensive, at least in the short run. Particularly vulnerable are low-skilled workers, notes economist Diana Furchtgott-Roth of the Manhattan Institute. Because the employer mandate exempts firms with fewer than 50 workers, there’s a huge incentive for firms to stop at 49, she says.


(3) Uncontrolled health spending is the U.S. system’s main problem — and the ACA makes it worse. Spiraling health costs crowd out other government programs and squeeze wage increases by diverting compensation dollars into employer-paid insurance. Because insured people use more health services than the uninsured, the ACA (covering an estimated 30 million more) raises spending. As for the ACA’s cost-control provisions, even the government’s own actuaries don’t believe they will do much. By their latest projection, total health spending — government and private — rises from 17.9 percent of the economy (gross domestic product) in 2010 to 19.6 percent in 2021. In 1980, health care was 9 percent of GDP.


(4) Obama’s program also worsens the federal budget problem. Driven by Medicare and Medicaid, health care already exceeds one-fourth of the budget and is headed toward a third. It’s the crux of the problem. So Obama creates another huge health program. The administration’s retort: the program lowers the budget deficit. This is rhetorical hocus-pocus. Here’s what happens. From 2012 to 2022, the ACA raises federal spending by $1.762 trillion, estimates the Congressional Budget Office. However, all of this and a bit more is offset by tax increases and assumed cuts in Medicare. But these tax increases and cuts could have been used to shrink the huge budget deficits that pre-existed Obamacare. Now they can’t; moreover, the Medicare cuts might be repealed or reduced.


(5) The ACA discriminates against the young in favor of the old. Government policy already does this through payroll taxes that have young workers subsidizing Social Security and Medicare benefits. The ACA compounds the effect by forcing some young Americans to buy insurance at artificially high premiums that would pay for the care of a sicker, older population.


I'd like to add a 6th reason why ObamaCare is bad law via the College National Republican Committee:



See more of Jared Allebest / Conservative Samizdat here.......  http://conservativesamizdat.blogspot.com/

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The sad thing is that too many people mistakenly think that Obamacare is the necessary evil. When the better off can't invest in the economy, there aren't jobs addes, they are taxed and can't invest, fewer people have money to pay taxes, and, basically, everything falls apart. Don't spend money you don't have (spending), and don't tax away energizing investment. Getting the economy working depends on natural, normal work, not on artificial, stop-gap stimulants.

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The truly sad thing is, despite the obvious downfalls of the ACA, this page/article is self-defeating. The premium increases referenced here are in regards to minimum coverage at the lowest state value offered (this statistical "research" project has already been proven as biased elsewhere). More aptly put, these new premium rates will be lower than almost all other premiums for almost every single person who already has comprehensive coverage. Also, I am dismayed at the complete disregard given to the effect this piece of legislature will have on the Healthcare Industry (which, in text, was referenced as a huge chunk of the U.S. GDP). Not only will it create thousands, if not millions, of new jobs there, it will most likely lower total healthcare costs by spreading the expenses out among a larger population. All in all, this strikes me as a rather poorly researched, one-sided article. Feel free to disagree as you will.

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