Updated – March 7, 2015
Will wasteful government spending ever go on a diet? Perhaps — finally. A major court decision on ObamaCare in June will be a determining factor.
We were promised that ObamaCare would cut healthcare costs and premiums. The president and his supporters promised we could keep our doctors. etc. … and the unfulfilled promises go on and on … just the opposite is true.
Even back in 2012, this portal reported ObamaCare had cost the economy $27.6 billion and eliminated 30,000 jobs. ObamaCare has exacerbated the nation’s debt — now more than $18 trillion. (See the national debt clock in real time here.)
But now there’s a glimmer of hope for a government diet.
The ObamaCare debacle is going to be decided by the U.S. Supreme Court again. It could mean the end of the disastrous law.
Moreover, an anticipated collapse of ObamaCare and the 2011 downgrade of the U.S. credit rating would combine to be reproaches to massive, wasteful federal-government spending.
The high court, in effect, will decide the meaning of phrase in the law, “established by the state,” which pertains to Americans who get subsidies for their health insurance in those state-run exchanges.
ObamaCare supporters disingenuously now claim the phrase is irrelevant. They claim subsidies should be allowed in all 50 states.
If the court rules the phrase in the law should be taken literally, funding for the law will dissipate and ObamaCare will disappear.
U.S. credit rating
Many lawmakers in Washington have a short memory. Don’t forget about the Standard and Poor’s historic downgrade of the U.S. credit rating to AA+ in August 2011. President Obama bitterly complained about the downgrade instead of heeding it.
In reality, the downgrade and ongoing opposition to ObamaCare are positive developments. The two represent reproaches to the federal government’s behavior and performance.
Most businesspeople oppose the law (How Healthcare Law Would Affect Small Business, and Healthcare Reform Increases Costs to Workers, Study).
Despite disingenuous claims by the Obama Administration, S&P’s downgrade was justified. In pandering to political cronies, nearly all in Congress from both parties have spent an obscene amount of money on unwarranted hometown pork and earmarks. Did I mention the huge red flag — the $18 trillion+ national debt.
Not only do most Americans disapprove of ObamaCare according to most polls, you might recall public officials in most states originally filed legal action against it.
The opponents’ case was pursued by attorneys general and governors from more than half of the states – 26. Other plaintiffs have included the National Federation of Independent Business and two individuals.
Obamacare requires guaranteed funding via the consistency in the mega pool of policyholders. Now, insurance companies have hiked premiums — just as predicted here at The Biz Coach.
Possibly, there’ll be a different political landscape. Perhaps the Supreme Court might rule against the Obama Administration — especially if the Republican-dominated Congress finally comes up with an alternative to ObamaCare.
As state governments have carried out the law’s reforms, there has been a lot of angst about the costs in implementing the law. Many of the states’ politicians complain their rights have been trampled.
In Oregon, state officials finally pulled the plug on the state’s exchange after $248 million was wasted on it. (See this LA Times article: Oregon abolishes its hopelessly bungled health insurance exchange.)
So a positive ruling in June will torch the remaining portions of ObamaCare. Why? The mandate to buy insurance is a source of the law’s funding, which might now be disrupted.
Only one source remains as a funding source – an aggregate decrease of $799 billion in Medicare benefits payable to doctors for their care of patients. As a result when people turn 65, many can’t get care as doctors refuse to accept new Medicare patients.
Sadly, ObamaCare supporters have been disingenuous. They conveniently omit the resulting devastation to recipients of Medicare.
Let’s hope the entire baggage in Obamacare is at-risk. It was clearly unconscionable for the Obama Administration to require Americans to buy private products in the first place.
The Great Recession may have technically ended but not for many businesspeople and consumers. That’s why the S&P downgrade and court ruling are beneficial. The reproaches might help to end the expansion of the over-extended Federal government.
The reproaches also hold the promise of enhancing the economy by alleviating economic uncertainty for 14 millions of unemployed and under-employed Americans, and struggling employers, alike. Companies have been reluctant to hire, in part, because of the expense of Obamacare.
Here’s a better strategic plan: Balance the budget without increasing taxes on everyone. Make it feasible for startups and other businesses to hire and expand.
Economic and political freedom are two of America’s sacred liberties. Government spending must go on a diet.
From the Coach’s Corner, here are related public-policy articles:
Only Fiscal Sobriety Will Prevent Further Fiscal Chaos — We’re way past the deadline to demonstrate financial leadership. It’s time for economic fundamentals and teamwork focused on economic patriotism.
Do We Really Honor the Declaration of Independence? — Progressively more every year, many Americans, especially public officials, demonstrate they need to review the reasons for Independence Day and why we celebrate the fourth of July. It is, of course, a national U.S. holiday that commemorates the adoption of our unique Declaration of Independence on July 4, 1776. Thomas Jefferson was inspired to write the historic document between June 11 and 28, 1776. He eloquently stated the convictions of Americans. They weren’t new ideals expressing the desire for liberty. John Locke and others beat him to it.
Manufacturing Jobs Might Return to U.S. as China’s Labor Costs Rise — As some U.S. states develop reputations as low-cost manufacturing centers and China’s wages increase, offshoring of jobs is expected to decline in five years, according to an international consulting firm. That’s the essence of a 2011 study by The Boston Consulting Group (BCG).
Economic Climate for Business – Has Obama Misread the 3 Ms? — President Obama has misread his small-business 3Ms – he won’t be confused with Abraham Lincoln for policies and Franklin Roosevelt for messaging.
Government Spending Causes Companies to Cut Back, Harvard Study — A Harvard study reveals that massive U.S. borrowing and spending has wasted trillions of dollars in flawed efforts to stimulate the economy.
“Giving money and power to government is like giving whiskey and car keys to teenage boys.”
Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.