Saturday, March 22, 2014

Bastiat bites Obamacare HARD

But it's the rest of us that go ouch.  Here's a classic 'inside pool' second or third order impact of the Democrats' lunatic healthcare tendency.  First a little background from the WSJ:

• Unworkable subsidies. A family of four at 138% of poverty level is able to enroll in Medicaid in about half the states and obtain insurance worth about $8,000. Since the coverage is completely free, that's an $8,000 gift. If they earn $1 more, they will be entitled to join a health-insurance exchange and obtain a private plan that costs, say, 50% more in return for an out-of-pocket premium of about $900. That's a gift of more than $11,000.

At the same time, the employees of a hotel who earn pretty much the same wage as in the two previous cases will be forced to have an expensive family plan and they and their employer will get no new government help. The only assistance is the long-standing tax break that exempts employers' premium payments from federal income and payroll taxes. Even so, the ObamaCare mandate amounts to about a $10,000 burden on these businesses and by extension their employees.

These are only a few of the many ways in which ObamaCare's treatment of people is arbitrary and unfair.

A bigger problem is the impact these differential subsidies will have on our economy. As businesses discover that almost everyone who earns less than the average wage gets a better deal from the federal government in the exchange or from Medicaid, and that most people who earn more than the average wage get a better deal if insurance is provided at work, trends already evident will accelerate. Higher-income workers will tend to congregate in firms that provide insurance. Lower-income workers will tend to work for firms that don't. But efficient production requires that firm size and composition be determined by economic factors, not health-insurance subsidies.


Did you get that?  We already have an economy that is steadily stratifying into different classes of employees:  at the top are the government workers who get lifetime employment, gold plated retirement and healthcare benefits - mostly because politicians can shove those up our kids....noses so no skin off their....asses.  In the middle are the higher comped, more 'valuable' private economy workers who while facing the uncertainty of the private market, get 'good' benefits - they are increasingly congregating in firms that specialize in high value work and subcontract out or otherwise outsource most of the low wage low value work.  Then at the bottom are the untermenschen who rely on the state to cover their healthcare, retirement and so on.  Obama's law intensifies and accelerates this trend.  

Like most things that our brilliant port siders do these days, the unintended consequence of their electoral whoring is more inequality and cruelty at enormous cost to our children (Estimated $7 Trillion down for this sucker, but who's counting).  But hey!  They won some elections so it was a 'good gig'.

Next up:  unaffordable, unproven and ultimately pointless Pre-K 'education' subsidies - another middle class voter bribe where the bill gets sent to our kids.  Dems are like sharks, they have to keep on robbing Peter's son and daughter to pay Paul or they will die electorally.  One of these days we're going to conclude that we can't afford them alive anymore.



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