February 10, 2014
By: Kelly Diamond, Publisher
The detrimental effects of Obamacare on the U.S. economy are myriad. The Congressional Budget Office was initially conservative on their estimations of long term effects of the bill, mainly because they were given strict parameters by which to make their predictions. But with the liberty to make new estimations based on three large factors, the devil can be exposed for what he is in the details:
“(1) Obamacare’s employer mandate, which will discourage hiring and reduce wages offered by employers; (2) Obamacare’s $1 trillion in tax increases, which will discourage work and depress economic growth; and (3) the law’s $2 trillion in subsidies for low-income individuals, which will discourage many from remaining in the labor force.” (Source: Forbes.com)
The fact that GWP finds ways to capitalize on negative economic circumstances certainly doesn’t mean we endorse policies that create these circumstances. So it is rather shocking to see the White House excited about a reduced labor force. That Jay Carney could be so glib about a reduced labor force, knowing full well that entails a reduced tax base, was not a play I expected:
“Over the longer run, CBO finds that because of this law, individuals will be empowered to make choices about their own lives and livelihoods, like retiring on time rather than working into their elderly years or choosing to spend more time with their families. At the beginning of this year, we noted that as part of this new day in health care, Americans would no longer be trapped in a job just to provide coverage for their families, and would have the opportunity to pursue their dreams.” White House Press Secretary, Jay Carney when asked about the projected loss of 2.5 million jobs by 2020 due to Obamacare.
While I’m NO fan of taxation, if your business model relies on stealing a percentage of the fruits of your laborers (as is obviously the case for all governments), then shrinking that population makes no sense.
It would be like a dentist promoting a sure-fire cavity prevention policy. It would be like a doctor telling you to exercise and eat a diet rich in vegetables and fruit rather than prescribing medications. It just makes no business sense. If you’re in the business of cavities and sickness, you don’t want people being well. And if you’re in the business of stealing money from producers, you don’t want people NOT producing.
The claims of the Obamacare opposition is that this act redistributes wealth. Perhaps to some extent this is true. There most certainly is a redistribution of the burden. Young, healthy individuals are paying higher premiums. Poorer people, regardless of health conditions, are paying lower premiums. Middle class families are actually considering DIVORCE just to afford care since the alternative is to pay onerous premiums that could very well amount to over 15% of the their incomes. There is no incentive to earn enough to afford the higher premiums, is there?
But worse than redistribution is the abject destruction of wealth altogether. Encouraging people to NOT produce? Incentivizing it even?!
How does such a program sustain itself with such a dismal long term projection?
The obvious and often repeated answer is: it doesn’t. That was never the point. The point was to ultimately get to a single-payer system by framing “Capitalism” for the failure of the Affordable Care Act.
How does that work though? While we are laying the groundwork for Nationalized Healthcare, every country with Nationalized Healthcare is moving toward a private system. How exactly can they expect to sell it? Sweden, the U.K., and even Canada are revisiting the virtues of socialized medicine.
Then there are the advocates for Obamacare who admit reforms are necessary given the unfortunate toll the bill in its current form takes on the poor and middle class. But look at all the “reforms” happening under Executive Order as opposed through the proper legislative process. Dodging the actual process to properly reform a law indicates that the problems with the ACA go deeper than just some quick fixes.
This also assumes that Obamacare is happening in a vacuum. That nothing else is poisoning the U.S. economy except the ACA. Alas, no. Our monetary policies are burning the wick from the other end. While they fund wars both abroad and domestically, and while they tax the crap out of the constituency through the ACA, they are also engaging in some precarious monetary activity. Printing, investing in volatile emerging markets, and keeping the interest rates low is not going to lead to anything good.
Burdening younger and future generations with not just debt and unpaid liabilities at birth in the tens of thousands of dollars range, BUT growing the education bubble at exponential rates by feeding the college debt beast. Availing money through student loan programs and inflating the cost of higher education… while selling the false hope that at the end of their graduation procession lies a job that will provide them a return on investment.
The collapse will be coming from all directions. The flaws and folly of Obamacare is only ONE wall in the house of cards being propped up by nothing more than faith and imagination of loyal patriots. This goes well beyond partisan politics because let’s face it, both parties are responsible for this mess we are in. That we got here in a matter of 230 years is a testament to power corrupting, absolute, power corrupting absolutely, and the ruthless efficiency at which corruption operates.
My late father was almost entirely dependent upon government. He was in the Air Force. Then he was a police officer. Then a public school teacher. He relied on a pension program that is currently bankrupting the state of California to support his retirement along with a private 403b. He complained about how his pension disqualified him from collecting Social Security! And his Medicare benefits footed the bill for nearly $60,000 per year in medical treatments for over 20 years.
There is no talking to someone who is so dependent upon government that their very life depends on its existence. This summation of my dad’s life should upset you terribly. Not because he died. We all are heading that way. It should upset you that he represents EVERYONE who is for sale! EVERYONE who will sell out and get on board the welfare train if offered the right amount. EVERYONE who is totally unconcerned with how the money was procured or who had to sacrifice for them to collect it. EVERYONE who will put their LIVES into the hands of known violent criminals for their own short-term gain. EVERYONE who feels entitled to indenture future generations for their own personal benefit.
Do you want to know what is shredding the moral fabric of our nation? I can assure you it’s not two men getting married! It’s the entitlement mentality. And subsequently the deep seated dependency individuals are developing on government.
Ever play the game “6 Degrees of Kevin Bacon”? The object of the game is to find a cinematic connection between any actor and Kevin Bacon in less than six points. Well, we have a game right now going on called “3 Degrees of Government”. You will be hard pressed to find a private enterprise that doesn’t rely on government.
Metal Fabrications? What percentage of their business is in some way tied to defense?
Auto industry? Bailouts, fleet sales to government entities.
Investors? Government manipulations through the Fed.
Higher Education? Federal Student Loan programs. Government funding.
Grocery stores? WIC/SNAP and other Food Stamp related programs.
Doctors? How many accept Medicare and Medicaid patients?
Insurance? Government mandates to purchase.
Telcom? Verizon, Apple, AT&T, Google, are all NSA compliant to stay in business.
Every birth that takes place in a hospital… every marriage sanctioned by the state… your social security number… your birth certificate… Who owns you?
See! Even our “private sector” isn’t really all that private… and they are being propped up by government in some way.
I’m not trying to scare you like the Ghost of Christmas Future. This IS happening right now. Are your eggs resting in a basket that relies on government to continue to provide for you? If so, you are very vulnerable. Does the government hold the future of your life, your family, your business in its hands?
The slow and painful death of the small family farm should be a warning to us all in what happens when we chase government handouts. Can you totally escape government? No. Can you minimize your connection to government? You bet! Can you reduce or mitigate the risks posed by the U.S. government on your holdings? Absolutely.
Maintain control over yourself, your assets, your EVERYTHING!!! Consider this a personal labyrinth. There is a way to navigate the obstacles… at least for now. And you’re in the maze whether you like it or not. Take the advice. Listen to those who have learned the ropes. Don’t risk when you don’t have to.