Obamacare Spells Death for a Weak Economy
Rick Ackerman
Hard to say what has touched off the buying spree on Wall Street so far this year, but it surely couldn’t have been inspired by the dreadnought of Obamacare bearing down on the U.S. economy. Have you kept up with the news? The details that have emerged concerning the badly misnamed Affordable Care Act suggest that it could easily crush the life from our already dying economy. There’s the matter of Medicaid, for one. Half of the states have taken the bait, opting to expand coverage with “free” money from Washington. And why not? Enlarging the program will cost them nothing extra until 2016, at which point The Guvvamint will cut back on reimbursements by about 10%. So then, why have no fewer than 25 states opted out? For starters, it will cost them a bundle just to administer the program – money they don’t have even if the care itself will be paid for, at
least initially, with OPM. However, an even bigger reason for saying no is that existing Medicaid programs are already pushing many states toward bankruptcy. Just ask Massachusetts, the home of Romneycare, where runaway healthcare costs are threatening to consume outlays in all other categories, including education, transportation, police, fire and judicial.
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