President Obama threatened on ABC News the other night that if Congress does not pass health care legislation, the federal government “will go bankrupt.” He described a dismal scenario of what will happen if Obamacare fails (all the while accusing conservatives of fear-mongering). Let's break this down.
“If we don't pass it, here's the guarantee….your premiums will go up, your employers are going to load up more costs on you. Potentially they're going to drop your coverage, because they just can't afford an increase of 25 percent, 30 percent in terms of the costs of providing health care to employees each and every year."
First of all, I don't know where he heard that healthcare costs were going up 30%. That's an awfully big percentage. I seriously doubt these figures and I'd like to hear his explanation with details about what part of healthcare and for how many years and in which limited cities or states or other conditions he has built to imply these percentages. Secondly, many of the costs associated with the coverage he mentioned have to do with government regulation, which he is hypocritically contributing to. The other problem with this is that the market doesn't put itself out of business; if allowed, it's naturally self correcting. If healthcare coverage went so high and nobody could afford to buy insurance, the typical company would lower their prices to increase customers and prevent going out of business. A market that gave more freedom would allow this principle to work effectively.
The president said that the costs of Medicare and Medicaid are on an “unsustainable” trajectory and if there is no action taken to bring them down, “the federal government will go bankrupt.”
Yes, Medicare and Medicaid are on an unsustainable trajectory, but this is because they are run by the government, particularly by the 4th branch of government--the bureaucracy. This is why I cannot understand why the senate was considering a Medicare buy-in/Medicare expansion which would devastate healthcare and taxpayers. The American Medical Association, although with limited clout, is vehemently proposed to any Medicare expansion and recently, the American Hospital Association made a desperate call for urgent action against this senate proposal from all hospital administrators. Hmmmm, is there a reason that the very providers of healthcare are opposed to this?
As far as the government going bankrupt, I'd like to hear Obama's explanation on how that will work. Are they going to stop printing money? Nope. Are they going to stop borrowing? Don't think so. Aren't we already bankrupt? In many ways, yes. Our government will never be able to take enough taxes to cancel its debt. The vast mess government programs, projects and appendages will need to be reduced in size and complexity for any hope of debt relief.
“This actually provides us the best chance of starting to bend the cost curve on the government expenditures in Medicare and Medicaid"
No, no, no! This is a lie! He cannot cut costs of government programs by creating more of them! The government does not run like the free market and it does not create wealth. Taxpayer money is used up by union control, lack of incentive, hyper-regulation, bureaucracy, etc. In just a few years, America will have massive population of seniors whom the government will have to answer to and the Ponzi schemes that have been barely holding back the floodwaters are going to be laid out for everyone to see. It's going to be messy. We can see why there's a sense of urgency for Obama to promote his plan. The problem is, it's the wrong plan and we already know it won't end pretty. Despite what Obama followers think, the President and his administration are not the new race of superhuman intellectuals who can change what has never worked before. They are both arrogant and naïve to think everything will play out differently for them.
I read this great analogy on an American Thinker comment about how Obama and his Democrats are manipulating this whole situation:
What you are doing is throwing a rock through our window with a note attached that says vote for us and give us your wealth so we can get your window fixed. And then lecture us that we may catch our death from a cold.