Obama is surprisingly naive for a guy who spent so much time in Chicago; there will be a million ways to bankrupt his healthcare system and exploit its vulnerabilities, and the end result will be an unpopular, unworkable, and very expensive system that will alienate his marginal supporters among white yuppies and independents.
Will a young, healthy, childless individual or couple buy health insurance costing 7.5 percent of their income, as required by Obama’s health legislation? Not until they get sick. Then they can always buy the insurance, and the Obama bill requires the insurance companies to give it to them. And if the premiums come to more than 7.5 percent of their income because they are now sick, no problem. Obama will subsidize it.
Instead, young, healthy, childless people will likely opt to pay the $1,000 fine (aka slap on the wrist) mandated in the bill. After all, even if they make as little as $50,000 a year, the fine is a lot cheaper than 7.5 percent of their income (or $3,500 a year)!
So … these young households will not contribute to the coffers of any health insurance company until they are sick and need the coverage. By then, their costs will come to vastly more than their premiums.
Who will subsidize the difference? We will.
“We,” by the way, are the “money people,” the 30-40% net contributors of the federal government’s revenues. These people of the upper middle and upper class, typically professionals or small business owners who have decent incomes–a far cry from the idle rich–will be ground into dust under Obama, and perhaps this is the real goal even beyond universal health care.
I’m not sure, though. Naivite, wishful thinking, and outright stupidity often explain things more fiathfully than grand and malevolent conspiracy theories. If there is one thing Obama has demonstrated in spades since his election, is that he’s not as sharp or even as street smart as his credentials would suggest. He’s a man of idealism and attainment more than actual achievement.
Naivite is exactly what we would expect from a guy with the “golden resume” rather than actual life experience. Rahm Emmanuel on the other hand . . .