The “Trickle Down” Effect of ObamaCare Economics

by editor | November 5th, 2013

Disclaimer:  I’m not an economist.  I don’t even play one on the internet.  I’m a person who has been around for a while and learned how to balance a checkbook, and have observed life for serveral decades as an adult.  I also have been required in one of my professions, to participate in the Federal budget system, so I know how some major parts of it work (or not).

Many people talk with disgust of the Regan “Trickle Down” effect of lowering taxes.  They refuse to see how by taxing everyone less sparked an economic comeback, after Jimmy Carter took us to the new place of “Stagflation.” We’re basically here again, but…don’t dare utter such a statement, because you will be shouted down and called a racist, etc, and then probably told how Reagan really ruined the country.  This is the world of ignorance we live in.

You know, we can complain about the ineffectiveness of a major software system just to enroll people in the ACA/Obamacare, but the real issue is the ACA itself:  It will cause significant damage to not only the economy, but the entire culture of the United States of America.

On the cynical side, I could postulate that was the entire point, and the facade of a working system really was never supposed to have been a serious system, and therefore the cries to just get rid of it and place all “insurance” in the hands of the Federal HHS department, tracked and managed for compliance by the IRS.  That would be very cynical indeed, but time will tell if I may be onto something.

If I were to be charitable, the implementation of the system was poorly planned, hobbled by a fear of “the opposition” seeing what was being set up, holding designers and programmers, and testers back from working the project effectively.  The placement of a system of this scope and impact was politicized, using taxpayers dollars, affecting taxpayers lives and economic well being.  That’s wrong, and I question why no one stood to validate the process, with the expected oversight any major Federal procurement would have been subject to under any other circumstances, of far less impact on the overall budget and the economy.

We, as taxpayers, and even those who cannot put into the system, have been ill served by those we voted to represent us.  The few who stood, were vilified by the entire weight of the White House functionaries and also the media, from news outlets to comedians.  Never fear, they, too will be subject to the same mess, some not so directly, but the damage to the economy will be felt for sure.

This Obamacare mess will wreck the economy at a whole other level.  As disposable income is shifted to cover hc increases for families, they will not buy pizza, fast food, see movies, buy accessories.  The impact is all but pretty basic service/essential item businesses will see revenues drop, then cut people back, shifting more into subsidies, driving costs up in a budget already over extended by 17t.

In who’s world of economics is this a functional system?  I’m not even a business major let alone economics, and I can figure it out.  It’s like someone hunted for the exact thread to pull to unravel the entire economy and purposely has pulled it.

Like the Carter luxury tax, in some ways, cut a devastating swath though the boating industry in particular.  Many employed craftsmen in the north east had no jobs, as “the rich” figured a way not to pay the tax.  In this case, it will be anyone making money not trying to avoid the tax, but being forced to pay it.  In ways big and small, as well as in between, revenues will disappear.

A good analog is the application of an abrasive to a highly polished surface.  At first a light grit, that takes the gleam away, then the coarseness increases and removes more and more of the top, protective surface with each pass.  That will be the effect on America, and the opposite of creating a fine piece of wood furniture, like some of our founding fathers did in reality.  That’s you start with a coarse grit and work your way to a fine grit and produce a luxurious finish.  President Obama is reversing the process.

Note:  I began typing this into my phone on 10/19/2013.  Before the uncovering of the lies, the re-lies and the spinning of the lies to make them look like truth.  It’s also become clear the entire software process was derailed by political operatives, and worse yet, the cost was provided to a “friend” on a no-bid contract, to a company with a horrible work history, on projects just such as this, and they had been fired by the Canadians.  Big red warning flags there.

With more people now uninsured (who are a small slice of America…18M and growing daily), than before the ACA, designed to make sure everybody was insured, this is a process totally out of control, and all the King’s Men can do is stand around and tell us it’s working, while the President, bored from the discussions, not to mention he never was told about any of these problems, wants to move on to start discussing “Immigration Reform.”  We stall haven’t solved this problem, let alone the major impact of more and more spending into debt, yet he insists it’s time to move on.

This morning, a friend and I caught up as he was driving.  He is a trainer for a larger contract cell phone service and he indicated two stores have been shut down, foot traffic is way down.  Just a small sample of what I have discussed above.  It’s happening and those sales people will be standing in line for unemployment.  The demands for quotas are going up from corporate, and the stress level is rising, as they become more unobtainable, due the to nature of the industry.  People won’t keep upgrading phones, or buying new cars, or even used ones.  Fixers will thrive, but the main component of the economy, the small businesses will commence to have hard landings, with the subsequent ripples across the financial pond.

A rudderless nation, we are, drifting from maelstrom to maelstrom to disaster, to mayhem, while our Neo-Nero fiddles at golf.

2 Responses to “The “Trickle Down” Effect of ObamaCare Economics”

  1. Just a comment on what I bleeive is a “current” result of Obamacare. I have Medicare coverage via an Advantage plan. This year, not only did my “co-pays” increase for specialists and ER services, but the real zinger is that MANY services which once had co-pays that were flat dollar amounts, e.g. $20.00, changed to “percentages.” Whereas last year (and those preceding) I would pay $20.00 on a $400 dollar bill, I now must pay $80. Not so bad you may say, but my only income is Social Security which did increase slightly this year (following two or was it three years of no COLA), but the increase in my income would quickly be devoured by medical expenses should I suddenly develop a serious illness. It is my understanding that several hundreds of millions of dollars were “redirected” from Advantage Plans with the advent of Obamacare, and I suppose these major changes in my plan are intended to recoup those losses. (See next)

  2. You are so wrong. My children who are under 26, DEFINITELY bfneeit already from the provisions of the Affordable Health Care Act. You guys are living in the Stone Age. Have you ever been to Europe? Have you ever been denied coverage because of a totally unrelated “pre-existing” condition? This law will enable us to move forward and actually begin cutting healthcare costs. THIS is what will bankrupt the US not the provision of universal healthcare, shared by all Americans, as it is in every other civilized country on this planet. Last of all, rationing is what we have NOW in our healthcare system. It’s immoral and despicable.

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