The ObamaCare lie that health care premiums would fall for hard working Americans is so insidious, I fully expect Democrats and Clinton to lose to Trump in November.
Here is Obama lying to the American people about how ObamaCare would lower working people’s health care premiums:
If you haven’t already heard from your employer, health care premiums are going up BIG in 2017.
For my family of 4, I pay $1,600 per month out of pocket for health care. In the 80’s, my dad paid $75 a month for a family of 5.
Folks, that’s a house payment. That’s why I still live in an apartment and will probably never make enough money to own a house.
It’s sick. All Democrats did was to take money away from working Americans, to pay for health care insurance for lower paid Americans or those unemployed. It’s a classical socialist “take from those according to their ability, give to those according to their need.”
After taxes, I only make about $2,400 a month. I’m paying out $1,600 of that in health care costs. I’m seriously thinking about quitting my job so I can get on ObamaCare. I mean is it worth working a 8:30 AM – 5:00 PM job for $800 a month after health care costs? That’s the core fundamental problem with socialism folks and why it doesn’t work. Every socialist country that has ever existed has failed because of this core fundamental problem. When you take from those according to their ability, you lower the incentive for people to use those abilities. When you remove most of the benefits that hard work offers, you eliminate the incentive for people to work hard, and you create a nation of lazy and dependent people. Increased dependency is why socialism doesn’t work and will always fail. In other words eventually, you run out of other peoples money to spend. With too few people working and paying taxes, the entire system collapses.
Why ObamaCare Is Failing
President Obama and Democrats thought that the expansion of the health care market by 50 million uninsureds would shift the demand curve to the right (blue line to red line above), which would lead to an increase in both the price of health care as well as the supply (blue star above). The supply part of the equation is where Democrats and Obama blew it. The supply of doctors and nurses is more inelastic than Democrats and economists thought. There is no rapidly expanding supply of physicians and nurses. Worse, Democrats are using lawyers to push down prices artificially. When the rewards of being a doctor are less, some doctors will retire. When the average wage of a nurse drops due to legal action by Democrats to lower costs, medical students will change their courses of study. Rather than produce medical equipment with low-profit margins, medical equipment suppliers will shift to markets not subject to government price controls. Even worse, Republican lawmakers are always threatening to do away with ObamaCare when they take the Presidency. What hospital or medical center is going to spend a lot of money on expanding supply to meet the demand of 50 million more patients when their not sure if ObamaCare will even be around in a few years? The result is that the supply curve is not moving but instead shifting back along the curve to the point where it intersects the dashed line marked by the red star.
Tom Bowler of PJ Media has an even darker supply and demand curve that I agree with. Mr. Bowler shows the inelasticity of the supply curve so severe that it shifts the supply curve to the left, creating a new equilibrium point with a higher equilibrium price and lower quantities demanded and supplied.
For health care reform to have any hope of success at bending the cost curve down there must be something in it that encourages a greater supply of health care services. We need to shift the health care supply curves from left to right. Without some technological leap — which is not something that can be legislated — this means increasing the supply of doctors, nurses, medical technicians, and other providers.
Tom Bowler wrote the statement above back in 2010 when most thought ObamaCare still had hope. Today, I think we have enough economic data and rising premiums to say that it’s been a total failure at the expense of hard-working Americans who don’t qualify for ObamaCare.
As supply is not increasing to meet increased demand, prices are rising even more than they would without ObamaCare. Many Republican economists warned that Democrats were wrong about health care costs going down as a result of ObamaCare, and they ultimately have been proven right.
The $1,600 I pay each month for health care for a family of 4 means I’m investing less. I’m not buying a house. I can barely afford my two car payments. I’m not going to the movies. I’m not going out to eat as much. I’m not buying as many clothes. I’m not shopping as much. I’m not buying my wife as much jewelry. I’m going more in debt. That’s the reality of the devastation that health care has reaped on the U.S. economy and in 2017 with the hike in premiums; it’s going to get even worse.