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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Tuesday, February 23, 2010

More of the same nonsense from the Obamessiah.....

So, after the stunning defeat of the Democrats by themselves in their Pelosi/Reid government grab and attempted socialization of the American healthcare system, the empty suit and seeming empty-headed Obamessiah foists another silly government centered healthcare system upon the American people....
US President Barack Obama has unveiled new plans to reform healthcare and revive stalled legislation on the issue.

One of the key proposals gives the US government power to block health insurers from imposing excessive premium increases.

Mr Obama will hold bipartisan talks at the White House on the issue on Thursday.

The Obama plan aims to cover 31 million uninsured US and crack down on exorbitant premium hikes by insurers.
From here. So, the movement towards Marxism in America continues. After the Obamessiah failed with the last 'plan' after stupidly outsourcing all the heavy lifting and tough work to the socialists in the House and the Senate, the campaigner-in-chief finally offers his own Marxist plans for America. Price controls on healthcare plans? Stunning. Will lead to less supply of healthcare insurance plans offered by private insurers. Insurers will only be in the business if they can make money on it and the only solution will be to offer a government plan. Slick Marxism.

However, one of the more heinous aspects of this 'plan' is his proposed Medicare taxes on capital gains. The US Government is broke and will try to raise taxes everywhere that they think that they can get away with it. Medicare is bankrupt too since it was completely a demographic indulgence as is all European socialized medical systems and is doomed to fail miserably.

What is a demographic indulgence? When the bulk of the people living in a nation are of working age, as we have seen in the US when the baby boomers were of working age, pay into a system that covers the healthcare of a much smaller population of people. However, as these boomers reach retirement age, they will overwhelm the system when they demand and need the services that they think that they paid for and were promised for the 40 or 50 years that they paid government taxes for Medicare. The failure of Socialized government programs is not that far away!

Of course, the Democrats only solution to a problem is more socialization, more taxes and the Obamessiah has proposed Medicare taxes on Capital gains to temporarily support the sinking Medicare ship. Ah ha! A tax on capital gains. So, higher taxes on capital gains reduces the rewards to investment and therefore again will depress savings relative to consumption. More tax policy that discourages savings relative to consumption. Less savings means less capital available for investment in plants, buildings, R&d and other critical investments. Means fewer jobs, leads to the encouragement of debt relative to equity and results in more volatility in economic growth.

Good luck! The US elected a feckless Marxist and it will not work out well for that nation.

3 Comments:

At 7:34 PM, Anonymous Anonymous said...

People really don't know what this legislation is all about. The details are frightening.
Of course the health care system is out of cost control, but giving it over to this government is a mistake. We are not set up as a socialist economy. You can't just magically say that we are going to change the system to something that is totally different from how America is set up. It needs to be more competitive, that is how we thrive.
This bill is a power play to exert even more control over money.
It's also filled with pork bribes and directly affects small business owner negativley.

 
At 7:32 AM, Blogger glenzo said...

The more economic power one gives to the government, the more goodies that they have to handout to their friends and favored constituents.

Furthermore, by hiding true costs, as socialist systems do, people cannot and do not make rational decisions on what they want.

Tort reform, unlocking cross state border restrictions and allowing HSA to be fully implemented should be the first steps to try to shed light on the true costs of healthcare.

However, I read the other day that there are now 50% of the nation receiving some kind of Federal subsidy (sounds too high to me) and that this is part of the problem. Medicare sets prices too low and this forces others to cover the balance.

 
At 9:07 AM, Anonymous Anonymous said...

That sounds about right. There are almost 40 million on food stamps alone, kick in SS, Medicare, welfare, disability entitlements, unemployment and it's not hard to get to the 50% mark

 

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