On some snowy winter afternoon, bored with everything in the house, you probably tried to build a house of cards. From this experience, you know you have to build a large base, and work your way up to a smaller and smaller peak. That’s the only sensible way to do it.
Obamacare, on the other hand, is a house of cards inverted. It is structured in a way that the young must hold up the aging population. And the young are staying away from Obamacare in droves. The base can’t hold up the larger peak.
Jason Scheurer doesn’t employ this gentle analogy. He calls Obamacare “institutional slavery.”
In order for this new scheme to work, Obamacare relies on robbing the young of their ability to start a future. Latest projections from the government’s own estimates are that it will not work unless at least three million currently uninsured Americans, ages 18-34, enroll to subsidize the older and sicker. That sort of thinking is comparable to forcing the good drivers to pay for the bad drivers. In a true insurance pool, you pay based on your risk level. This government solution, however, is actually just another redistribution program wrapped up in pretty-sounding words like “shared sacrifice” and “saving money”. The real question is, “Who’s really sacrificing and who’s really saving money?” Any system whose participants do not directly benefit or are directly penalized by its actions is always prone to breaking down under the realities of the real world. The youth who are already delaying marriage and children are doing so because they are living under crushing student loans, poor job prospects, and mounting future debt obligations from previous generations.
The young won’t buy into Obamacare. You see, most of them are going to stay on their parents’ plans for as long as possible or they simply won’t buy any. They’ll play the odds: they probably won’t get terribly ill. It’s the older people, the ones who have made poor health choices that are now catching up with them, or who are simply getting older and dealing with issues of aging, that need to be “bolstered” with the money the young are suppposed to be throwing into the collective pot. But the Obama administration can’t talk young adults into it, despite offensive ads and social media campaigning.
This is why our “most transparent administration in history” had to “pass the bill so that you can find out what is in it” behind closed doors and not on C-SPAN as promised. Eat the young to save the old…No economy can hope to grow when it’s destroying its youth under the shackles of the previous generation’s mistakes.
James Gwartney, Richard L. Stroup, and Dwight R. Lee are three of the most prominent economists today, and in Common Sense Economics they show us why economic understanding is an essential ingredient for life in today's society.