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Of course I’m talking about the US Supreme Court’s 5-4 decision in favor of the Affordable Care Act, otherwise known as Obamacare.
Apparently, the act is constitutional, but not under the Commerce Clause that gives the government power to regulate commerce. Rather, it is under the taxing authority of the federal government that gave teeth to Obamacare’s mandate to all citizens to have—i.e. buy—health insurance.
Just like that, a huge portion of the US economy is under the command and control of the feds. Is this a good thing?
Command economies’ poor track record
Just looking at the track records of command economies around the world should tell you that they don’t control prices efficiently, delivery of proper services is spotty, and the level of services declines over time. The response to these inefficiencies in command economies is always the same: reduce services and raise taxes.
But we don’t have to look outside the US for command economy disasters; the colossal inefficiency of the US Postal Service is enough to know that today’s Supreme Court decision is a disaster waiting to happen.
Nonetheless, we now have Obamacare.
And who will end up paying for it?
In the end, and from the beginning, it will be the same Americans who pay for all the command economy federal programs—the middle class.
Think about it; today, almost 50% of American households pay no federal income taxes. Do you think that those same households will be on the hook for paying insurance premiums?
Or will the cost be born by those Americans who work for a living?
Not a tough question, is it?
A better question to ask would be, “How long will the “Affordable” Care Act remain affordable to the middle class taxpayer, or even the economy as a whole? Remember, when taxes go up, middle class consumption falls.
Consider another question: “In the midst of the greatest economic crisis since the Great Depression, with persistent unemployment and underemployment, how will a younger generation of Americans be able to pay for the premiums as they enter middle age?
The expansion of the command economy in the US is just one more aspect to the constitutional malpractice we have seen today.
If you disagree, ask yourself which command economy nation in the world has, more skilled doctor and cutting edge research, more effective drugs and a broader range of medical advances that the US has right now under its existing system?
No argument here that it could be improved; it needs to be reformed, but Obamacare ain't it.
Perhaps a more impactful question would be “are the level of medical care and medical advances now likely to increase or decrease with Obamacare?”
Want another dose of reality?
Cost of Obamacare is a lie
The costs of Obamacare are a lie; every cost of every federal program is grossly underestimated. As costs spiral higher much quicker than current estimates say they will—what will happen?
As noted above, taxes to pay for the system will be raised, and the level of care available will decline…
Yep, the feds will end up rationing medical care. Expensive care will become rare and less justifiable, and basic care will be the new lower standard.
Think the best minds will go into medicine with low salary caps?
Think drug and medical innovations will continue with no profit motive?
Forget about it.
We’ll be importing cheaper doctors from 3rd world countries, just like the UK does today. The days of high paid doctors and specialists in the US may well be numbered...
Or, as in the UK, there may well be private health insurance for the wealthy, and crappy national health for everybody else.
A smarter solution to the problem of costly healthcare premiums would be to open up medical insurance competition nationwide, without the possibility of denying preexisting conditions of individuals.
This system works with group coverage right now; there is no reason to believe that it wouldn’t work on a larger scale.
That way, preexisting condition would be covered and yet economies of scale would still be achievable, competitive market pricing would be in effect, and innovation and research would still be rewarded with a market in which to sell them.
This solution, of course, would require only minimal government intervention, and yet provide affordable coverage. But, as I said at the beginning, the big deal with Obamacare is that it’s all about government command and control.
It’s not about a healthy economy; it’s all about growing federal power over our lives.
Think I’m wrong?
Please, tell me why. Give your comments for the The Gorrie Details Weekly Wrap comment of the week at www.facebook.com/absolutewealth or on twitter at absolutewealth1 #thegorriedetails.
Many think that healthcare levels and costs will improve with Obamacare.
But when it's all said and done, they will be supremely disappointed.
In the meantime, I think I will self-medicate—while it’s still legal—and take a couple aspirins; I’ve got a headache.
And those are…The Gorrie Details.