How Will ObamaCare Affect Economic Recovery?

While the end of 2012 is fast approaching, few people have a clue what 2013 has entail.  Since ObamaCare is to go active in January, we must be prepared for the fallout that this could cause.  Although some people believe ObamaCare is “FREE”, one must remember Nothing in Life is Free and actually with the imposed policy we will all have to reach deep in our pockets to pay for President Obama’s Health Care Policy.  Having heard some preliminary cost figures around $3500 a year per taxpayer no matter if you are an employee at McDonald's or an Orthopedic Surgeon, it will affect each and everyone.  In addition to the imposed cost involved, it is extremely likely with the imposed compliance regulations and employer mandate taxes that a reduction in jobs and less business expansion will occur.

ObamaCare will affect the economy, but not in a positive light.  Mandating additional taxes, when the economy is not fully recovered from the deep recession that has left many people’s pockets empty, is a disaster waiting to happen.  With many people still struggling to survive and then having their paycheck whacked to pay for this healthcare policy, it could cause a financial catastrophe similar to the Great Depression.  Other nations have tried centralized heath care using similar lingo to the way ObamaCare is written, but all of them have failed. 

Although each and everyone will be affected by ObamaCare, those in the lower class and lower middle class will be affected the most by the new policy.  With roughly $3500 a year coming off your paycheck, it will affect an employee at McDonald's more than an Orthopedic Surgeon.  Since inflation won’t rise high enough to help equalize the cost increase for health care, it is bound to adjust your spending budget.  Less cash to spend creates lower consumer confidence, therefore less spending of expendable income, and spending is what generates growth. 

By now, you can probably see that you are going to be affected by ObamaCare, but it’s too late to do anything other than endure the pain we all will be affected by starting in January.  Whether you are in manufacturing, retail, the automotive industry, or the hospitality industry, everyone will be affected.

Is this the jobs plan President Obama had in mind?  It is estimated that ObamaCare could result in 800,000 fewer U.S. jobs, and add trillion of dollars in debt for future generations to pay for.

Because ObamaCare imposes many regulations on physicians, many doctors are considering no longer accepting government health programs.  Since Medicaid only reimburses doctors 56 percent of the market rate for medical procedures, and with an increase of 18 million additional people to the program, it is super unfavorable for doctors to accept government health programs.  Not only is ObamaCare bad for doctors, it is also bad for seniors as well because doctors they previously visited may no longer accept the government programs.  Although many people believe doctors make too much money, many people forget the extreme costs involved to become a doctor, or the medical malpractice insurance that is very costly, or the frivolous law suits many doctors face.  Unfortunately, with all of those factors, many doctors don’t make that much money per year for the amount of stress and headache they endure to save lives.

So, how will ObamaCare affect our economy?  Not good.  I would suspect that we will see an increase in foreclosures again, debt will continue to rise astronomically, growth will cease, unemployment will increase, and our economy could fall beyond the impact of the recession, and that we will be left with a giant economic mess for future generations to clean up.

Increasing taxes does not generate economic growth, and distribution of wealth does not create incentive to overachieve.  Distribution of wealth rewards mediocrity and poor performance, and creates a nation of stagnant growth.  So as the end of 2012 comes near, be prepared to open your wallets, and wait for the fallout that will come from the Centralized Health Care policy known as ObamaCare.  It’s not if the affects of ObamaCare come, it’s when the affects of ObamaCare come, Be Prepared and Have a Plan.  Although I would like to think that ObamaCare is a positive thing, unfortunately when you dig into the facts of the policy, it has Failure written all over it.  To find out more about ObamaCare, here’s a resource I thought was interesting from The Heritage Foundation.