Obamacare and the Real End of the Economy

So there are an awful lot of people (mostly in red states) that hate Obamacare, from Congress to health care workers. They would rather keep the current health system. How’s that working out for us?

(Click for larger images)

health

infant

life

All data from the OECD (an arm of the World Bank)

See anything wrong with the current system? The U.S. spends 18% of GDP, the most among all OECD countries. What are we getting for all of this greenback? The lowest life expectancy of 28 countries, and the 10th highest infant mortality rate among 40 countries:

So what does Obamacare get us? The typical Medicare person pays $188 per month toward their health insurance. That would go down to $42 per month. For everyone else, if you make too much money, then you’re insurance would go to a sliding scale. So using an example from the Exchange Calculator, if a single person makes $25,000 per year, (the cut off is $22,080), then they would pay 4% of the premium beyond their 138% of poverty level per month. The math works like this:

$25,000-22,080= 2920

$2920 * .04 = $116.80

Monthly premium = $116.80 PER MONTH.

Just so we’re clear, the average employee premium is $120 PER WEEK (or $480 per month).

What’s there not to like? Granted it’s not perfect in the sense that Obamacare does nothing for the inefficiencies of health care, but at least we won’t be overpaying for cruddy service.

Now so we all understand the debt ceiling thing, this is NOT expanding the debt; this is paying for the debt that the U.S. has already incurred – debt incurred that was specifically approved by congress. The fringe on the right wants to NOT pay the bills they approved because they hate Obamacare. So what are the consequences of that?

Economics hates unstable governments, and that’s what the U.S. is quickly becoming. If the U.S. actually does default on their bills, it will cause widespread depressions not just in the Eurozone, but in the U.S. as well. The Central Bank will be the only stop-gap to a Great Depression Part 2. No one knows what will happen for sure because the U.S. has always paid its bills; but most Economists agree it’s going to be really, really bad.

It won’t be Obamacare that ends the economy, it will be a congress that defaults on the bills because they hate Obama (and his economically better health care).

Lastly, you know that Socialist country to the north (Canada) – the one with the lower infant mortality rate, the one with the higher life expectancy, and the one with the cheaper (socialized) health care? They now have a better credit rating than the U.S. because of congress’ last threat to the debt ceiling.

Advertisements
This entry was posted in Economics, Health, Political Economy, Public Policy. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s