You know that ObamaCare is in trouble when Health and Human Services Secretary Kathleen Sebelius is trying to recruit professional football players to encourage young adults to get health insurance. Typically this group of people are healthy and don’t see the need to have health insurance until they face a serious health issue. After all, ObamaCare allows them to be on their parent’s insurance policy until age 26.
The people who wrote the ObamaCare law were counting on healthy Americans to pay for those who have pre-existing conditions or major health issues. There are several problems already with the government calculation. First, there is a higher than normal rate of unemployment with young Americans. They cannot afford the big bill for insurance that the government will require from them when they turn 27. Second, the under-employment rate is equally higher than normal among young adults. Many businesses cannot afford the health insurance rates so they are creating more part-time jobs rather than full time jobs. Since there are so many unemployed people and new college graduates without jobs, competition for those jobs will keep wages low. This latter problem was created by the stipulations in the ObamaCare regulations. Third, without a growing economy creating jobs, there will not be enough employed people to sustain the cost of ObamaCare into the next decade.
Previously the Congressional Budget Office calculated that ObamaCare will start to see “red ink” after 2020. The reason was that payments for the program started to come into federal government coffers a few years ago. Remember billions have already been taken out of Medicare and switched over to ObamaCare. This is called “front loading” a program. More will be taken out of Medicare in the next decade.
A health economy was a pre-requisite for ObamaCare being solvent in this decade. You never hear Obama talk about jobs anymore because his stimulus was an utter failure. He and his advisors are also ignorant of economic history. The New Deal of Franklin Roosevelt should have served as the history lesson because Roosevelt spent billions of dollars to get the United States out of the depression and never succeeded. He just created more debt and double digit unemployment. The only times when the economy soared was when presidents cut taxes. Coolidge, Kennedy, Reagan and Clinton (pushed by Newt Gingrich) all created thriving economies by cutting taxes. So why does Obama and the Democrats insist on raising them? This is why ObamaCare will be in debt before the end of this decade. Ignorance!