The Economics of The Obama Plan
1. Provide a one payer health plan (the government) to compete with private industry and force costs down.
1a. Result: drives the 1300 private sector insurers (who are not competitive enough?) out of business and the government becomes the ONLY provider.
2. The cost of the program over 10 years is estimated at 2.5 $TRILLION.
2a. Result: This creates a huge - entirely new - hole in the budget that must be filled.Taxes Must be raised.
3. Revenue will be raised by new sales taxes (VAT taxes), Taxes on unhealthy foods like sugar (carbon) and higher cigarette taxes. The idea here is to reach a wider base of tax revenue from ALL spectra of society including the poor while encouraging better caloric intake among unhealthy eaters (mainly the poor). Note the pubic mantra of the "social reformers" is that they are only taxing the "rich". It is never close to enough revenue so stealth taxes like VAT and "Carbon Tax" are introduced.
3a. Result: The middle class and poor will lose another 10 to 20 percent (plus) of their disposable income to taxes on the foods they can afford, everything they can afford to buy to make their lives better. In effect, the VAT tax, the cigarette tax and the caloric tax (not to mention the "carbon tax" on energy) - are all aimed directly at the poor and the middle class who do not participate in the revenue support of income tax typical of high earners.
4. Print more money to feed the marketplace and stimulate more spending and pay for more government supported jobs for the continued unemployed and under-insured.
4a.Result: Flooding the economy with more dollars makes them worth less (inflation). So, in a way this adds another 10 - 20 percent (plus) "tax" on the poor and middle class. Let's assume the very wealthy have money management systems to protect their wealth from the ravaging effects of inflation (in most cases). But the cost of bread, milk, hamburgers and cars will rise since every dollar is worth less than it was before the "extra dollars" were printed.
5. With inflation - VAT tax, Sugar tax, Cigarette tax, and the energy "Carbon Tax" (cap and trade effect) - the Middle Class and Poor now have less disposable income to purchase the necessities of life. The few pleasures like a meal out at a fast food restaurant are more expensive.
5a. Result: Now the poverty level must be raised because it takes more money just to get by. More dollars must be printed and more taxes must be raised to create the funds to pay more "entitlements" for the retired, to the infirm, to the poor - to make up for the drop in the value of their money. Next step: SEE # 3 above - More Obama medicine.
6. Government jobs are created - troubled companies are purchased outright - to get more people off the "unemployment" rolls.
6a. Result: Private industry reduces output because the heavier taxes are slowing the purchases of goods by the middle class and poor. Private sector jobs continue to disappear. MORE important - the TAX REVENUE from the private industry companies and employees AND investors - dries up. Entrepreneurial people move to a cash economy and begin to operate under the radar of the tax system - government revenue drops even further. See #3 above - the Democrat solution - Raise taxes even more.
6b. MORE Results: Eventually there is never enough tax revenue to support all the government programs. Unending inflation and poverty destroy the retired, the middle class, the poor and last of all - the rich. The poor and middle class have fewer opportunities and progress upward is stymied. The spiral of lower government revenue - higher poverty - and desperation continues as the leadership continues to revert to step # 3. Health Care costs spiral ever upward as more and more people lose private sector options and depend on the government.
*** Study cities in the RUST BELT that have followed this strategy under Democrat Leadership for decades. They are now dead. Their industries are gone. Entire neighborhoods are boarded up. Some of the biggest supporters of the Obama Regime - like the unions - are now the co-owners (with the government) of the near-dead auto companies. Low tax - non union - right to work states like Mississippi, Alabama, Georgia and Tennessee have taken the jobs - sadly with foreign owned companies - since the unions would not allow American car companies to relocate.
The Republican Solution -- which has been completely blocked out since the majority Democrat Congress and now the Obama Administration.
1.REDUCE TAXES across the board ... (Democrats hate this because it fails to address their need to stimulate class warfare)
2a. This frees up more investment income among the investor class - They compete to produce more goods for the consumer class that includes the poor and middle class who benefit from expanded output and more choices and competing prices. The production requires more private sector jobs, most of which also produce revenue from income tax. More private sector revenue increases the tax revenue to the government - supporting the budget and in the best of times - paying down the debt. Unemployment drops. The number of insured goes up with more private sector employment. In short - MORE government REVENUE results from LOWER taxes across the board. The greater revenue responding from lower taxes is a resource to everyone - in health care - in food prices and availability and more. A consistent stream of younger poor keep moving out of the ranks of the poor to the ranks of the middle class and higher. The cycle of revenue production for the government builds on itself. It self perpetuates, benefitting all the people.
2c. Limit tort action against doctors and hospitals (this is the trial lawyer - ambulance chasing - suite happy lawyers who supported Obama and who along with unions are first in line for all Obama legislation scams. Obama and the Liberal Dems will NEVER reform tort laws which cause Doctors and hospitals to perform 10 times the tests they need to run and that force them to make decisions based on every lawsuit potential versus the individual needs of the patient. Example: They keep you in the hospital two days or overnight at least when not even needed just to check off one of the legal issues boxes which may have no relationship to your own case.