Letter: The high cost of not repealing Obamacare
Those who forget history are condemned to repeat it. In 1994, voters elected a Republican Congress for the first time in over 50 years. As part of the Contract With America, Newt Gingrich and company repealed the lifetime entitlement to welfare. For those who watched CBS, NBC, CNN (then in its heyday) and especially ABC, there were predictions of doom and gloom. Nightly images of food lines, millions becoming homeless and so on. Of course, nothing of the sort happened.
What did occur was that millions of people got jobs at entry level positions such as Walmart, got off the dole, and the economy boomed, so much so that Bill Clinton, taking credit for the growing economy created by a Republican Congress, got re-elected handily in 1996 (actually, he vetoed the bill twice until Dick Morris walked in to the Oval Office, asked Clinton if he liked being President and upon hearing the answer as yes, plunked the welfare reform bill down on his desk and told him “Sign this.”
Fast forward to, say, 2017. Donald Trump was elected President for many reasons, not the least of which was to “Repeal and Replace Obamacare”. Again, we hear the doom and gloom predictions. The data presented as fact in the Daily Miner is proof of the old acronym GIGO – Garbage In, Garbage Out. In fact, it uses what I call “Democrat math”, elsewhere called static scoring. This presumes that all things in the economy will stay the same, that as subsidies are withdrawn, people will have less money in their pockets. This is the same thinking that puts us on the road to Venezuela and Greece, the idea that government has money of its own, rather than taking it forcibly from the private economy. In point of fact, the “Trump Boom” in the stock market since November 8th has increased the wealth of individuals by 3 trillion dollars, roughly one trillion for each thousand point rise in the DJIA (Dow-Jones Industrial Average). Over the course of the next 6-12 months, as this money works its way through the economy, it will have a multiplier effect of creating many times the amount of jobs lost by the creation of Obamacare. And these will be good jobs, not part-time minimum wage jobs meant expressly to get around the mandates on business created by Obamacare.
Art Laffer, creator of the famed “Laffer Curve” (which shows how tax cuts bring increased, not decreased, tax revenue) and the true architect of the Reagan tax cuts that ushered in 20 years of prosperity, predicted that repealing and replacing Obamacare will add another 2,000 points to the DJIA, ergo, another two trillion dollars of wealth will be created. Repealing Obamacare will add by itself, if done correctly, at least 1.5-2% a year to GDP. And we’ve barely begun the Trump agenda of tax reform/tax cuts, regulatory relief, and energy production.
The idea that government incentivizing people not to work is the road to prosperity has been debunked 100% of the time. Every country which adopts capitalist principle succeeds, well, 100% of the time. Obamacare benefits a very small slice of the population at huge expense to a massive amount of individuals who have lost their health insurance, lost their jobs or have to pay $15,000 a year premiums with $10,000 deductibles, not to mention its effect on the provision of medical care (“if you like your doctor, you can keep your doctor”). And it is beyond the scope of this article to comment on what Obamacare would mean for the medical profession in the future. Undoubtedly, change always provides some dislocation, but repealing and replacing Obamacare will be, without question, an enormous net plus for the United States in general, and in Arizona and Mohave County in particular.