Cartoon photo of Obama driving off the cliff
Obamacare is a threat to the economy. It is now controlling one-sixth of our economy and it has the potential to destroy health insurance companies. It comes at a time when the economy is in very poor shape.
The only sector of the economy that is consistently doing well is the stock market thanks to the ongoing bank bailouts to the tune of $85 billion a month. The only reason these bailouts are still going on is because the economy is too weak to sustain a withdrawal from QE.
Mr. Obama took to the microphone last week to take credit for the uptick in economic growth and attack Republicans for the fact that it wasn’t higher. It was a supposition he presented as fact. He seems to think the 17% government shutdown is the reason the economy isn’t doing better.
The opposite is as likely to be accurate. The shutdown might have helped the economy. When the government does less, the private sector does better. Sequester helped growth because the government growth was slowed. The shutdown during the Clinton era also boosted the economy.
Mr. Obama’s supposition is not based on any provable facts.
What is provable is the jobs picture. It’s bleak.
The percentage of civilian non-institutional workers in the workforce is down to 62.8%, the lowest it has been since February 1978 when Jimmy Carter was president.
CNS News, pointing to the latest Bureau of Labor Statistics numbers, found that there were 357,000 fewer women holding jobs in October. Their unemployment went from 6.7% to 6.9%. Also from CNS News, black youth, ages 16-19, have a 393% higher rate of unemployment when compared with national averages. Their unemployment rate, at a 31-year low, stands at 36% while the national rate is 7.3%.
Also bleak is the debt picture.
Billionaire Donald Trump, in an interview with Greta Van Susteren, on her show ‘On the Record,’ said the United States is no longer a ‘rich’ country. Countries that aren’t rich borrow from other countries. He said a downgrade of our debt is inevitable.
“We are going up to $16 trillion [in debt] very soon, and it’s going to be a lot higher than that before he gets finished,” Trump said. “When you have [debt] in the $21-$22 trillion, you are talking about a downgrade no matter how you cut it.”
Then there is Obamacare.
The low Obamacare enrollment figures are causing economic concerns and could have a devastating effect if it continues. These low enrollment figures could seriously and adversely affect the viability of insurance companies.
The fact that the government can’t even get a website going shows how incompetent they will be at running our healthcare.
No one is minding the store and we have a president who has few if any leadership skills.
David Cutler, an architect of Obamcare and a strong supporter of the program warned about the incompetents running Obamacare in 2010. In a letter to Larry Summers, he pointed to the problems as he saw them:
1) poor leadership at the Centers for Medicare and Medicaid Services (CMS), a key organization in creating Obamacare;
2) clueless management at the Department of Health and Human Services on the subject of setting up exchanges;
3) an ineffective effort to work with insurers in implementing reform; and
4) general incompetence. “The overall head of implementation inside HHS, Jeanne Lambrew, is known for her knowledge of Congress, her commitment to the poor, and her mistrust of insurance companies,” Cutler wrote. “She is not known for operational ability, knowledge of delivery systems, or facilitating widespread change.”
Combine that with the fact that the enforcement arm is an unwieldy and corrupt IRS, how could anyone think this will work?
Obamcare adds $300 billion a year to the deficit, according to the Medicare and Medicaid actuaries. The only reason they could say it cuts the deficit is because they added hundreds of billions in new taxes. As the subsidies increase, so will our share of the Obamacare tax burden.
Mr. Obama is playing around with one-sixth of our economy while the economy is near-depression era levels in some areas.