Sensible Health-Care Reform (Part 9): The Passed Health-Care Will Further Exacerbate the Current Unprecedented Economic Decline (Part I)

This is the ninth of a series of commentaries, written from a free market, individual-centered perspective, examining the serious deficiencies of our current health-care system, the underlying root causes of those problems, the looming government fiscal catastrophe secondary to health-care entitlement spending, the failure of the recently passed health-care “reform” to address the grave problems facing our nation related to health-care delivery, the harm the recently passed health-care “reform” will cause to our seriously ill economy; and a proposal for a framework to truly, effectively, and sustainably reform our health-care delivery system. This report argues that the passed health-care bill will aggravate the current unprecedented US economic decline.


The Passed Health-Care Bill – Will Contribute Further to an Unprecedented Economic Decline


Considering the unsustainable and untenable Federal government fiscal state, the brutal unemployment levels, and the increasing citizenry dependence on government subsidy, we find ourselves in the midst of an historic and unprecedented economic downturn. Unless we implement rational and thoughtful policy to reverse these conditions, moving further down this same economic road can only lead to catastrophic economic collapse. The CBO in multiple reports describes the Federal fiscal trajectory as unsustainable, primarily secondary to entitlement health-care deficit spending. Federal debt held by the public jumped from 41% of GDP in 2008 to 60% in 2009 and is projected to climb to 100% of GDP by 2029 and 468% of GDP by 2060. Although for specific economic conditions, deficit spending can be helpful to the economy; ongoing debt growth beyond growth of the economy is inherently unstable. Without systemic reform, health-care spending deficit growth likely will exceed the above dire projection as economic growth rates fall further and further behind. In the long term, deficit spending represents shifting future consumption to present consumption, with less present investment i.e. savings, and therefore lower output of goods and services in the future. Further, progressive disparity between debt growth and that of economic growth will reach a point where investors will be unwilling to buy debt, leading to a significant risk of accelerating inflation, and subsequent economic calamity.
The Federal deficit worsens as more individuals lose their jobs with tax revenues falling and unemployment benefits rising. In this flagging economy, unemployment hovers around 10% with 4.2 million jobs lost in 2009. At the time of this writing, 460,000 more persons applied for first-time jobless benefits for the week ending April 3. In February, the Bureau of Labor and Statistics estimated the underemployment rate (includes those working part-time looking for full-time work, those unemployed looking for work, and those unemployed who have stopped trying to find work) at17%. A recent Gallup poll found the underemployment rate closer to 20%. For workers under the age of 25, unemployment stands at 20%. (A new Federal policy to eliminate unpaid internships, a tried and true mechanism for young adults to obtain valuable job skills, will further darken the employment picture for young job seekers.) Even more disturbing, the “long-term” jobless rate” – out of work for more than 27 weeks – in February 2009 was 25% of all the unemployed and by this past February had increased to 44% of the unemployed. Undoubtedly ongoing extension of jobless benefits contributes to the long-term jobless rate as it discourages the unemployed from seeking a new job.
As unemployment persists or deteriorates further, the number of citizens depending on the government climbs and the number of tax paying citizens falls. 60.8 million persons now depend on government for housing, health-care, and subsistence. The Index of Dependence on Government, a measure of citizenry dependence that considers government (taxpayer) subsidies for housing, education, health and welfare, farm and agriculture, and retirement has increased 31% since 2001. 36% of tax filers paid no income tax in 2008 and many of those actually received payments in the form of tax credits - $70 billion. In 2009, that number likely will have increased substantially because of further economic and employment decline and new Obama administration tax credits. The expansion of the number of citizens dependent on government and the ensuing contraction of tax paying citizens threatens the very foundation of our democratic republican system of government.
From a self-centered standpoint, as taxpayers, we understand that as unemployment persists or grows and citizenry dependence on government grows, we and future taxpayers will personally assume increasing excessive tax liability. Such confiscation of our wealth and redistribution of that wealth undoubtedly is unjust. Yet we must also recognize the terrible injustice of past and ongoing faulty and misguided government policies that hurt the economy, increase unemployment, and encourage dependence on government. These terrible policies, in the end, take away the individual’s unalienable right and bestowed human dignity to support one’s self and family and to make one’s own life decisions; and instead replace that right and dignity with “socially just” government provision of a meager and joyless “equal” existence.

The next Dr. Right will further argue that the passed health-care bill will worsen the current unprecedented economic crisis.



Call to Action: Though passed by an appalling political process and with complete disregard of our Constitution, though containing ineffective and even harmful policy, though disregarding the inalienable rights given to us by our Creator, the passed health-care reform bill is not the end of the debate but rather a new beginning. It is an opportunity to contrast irresponsible policy with prudent policy, to contrast misconceived policy with thoughtful policy, and to contrast policy that places government in the center with policy that places the individual in the center. Get in the fight and stay in the fight. We have learned, the hard way, the consequences of leaving it up to the career politicians. Contact your legislators and demand they exercise the privilege the voters gave them to represent us to effectively address health-care delivery and the other problems facing our states and nation. Learn about the issues and talk to others about the issues. We must join and financially support conservative think tanks that promote traditional American economic principles, personal freedoms, and values; and that shine the light of accountability on irresponsible or faulty government action and policy. Those organizations include The Heritage Foundation, The State Policy Network, The Commonwealth Foundation and your state’s conservative think tank (see SPN for your state’s organization). We must join and support our local grass roots organizations like the York 9-12 Patriots, York County Action, York Campaign for Liberty, and others, so we can take back the political process that has become corrupt and ineffective. We must work to bring up, from the grass root level, candidates – principled persons (Republicans, Democrats, and Independents) who will actually solve problems, who will respect the Constitution of the United States, and who will honor the “consent of the governed” entrusted to them by the citizens of our counties, states, and country.

God Bless and God Bless America