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Obamacare and the March Toward Socialism

One of the facts about Obamacare that seems to be routinely misunderstood is that it is not mainly a way to reduce the number of uninsured in America. It is, rather, a spectacularly large new wealth transfer system that both provides insurance for some uninsured people and subsidizes many others who had been buying their own insurance.

All of it with taxpayer’s money. Did we as a country need really more welfare? Could we afford it? Of course not, to both.

Writing in the National Review today, Michael Tanner of the CATO Institute makes clear the extent to which Obamacare is a scheme to hook people even more deeply on the federal government.

The vast majority of those signing up on the Obamacare exchanges – what could be some 5 to 5.5 million people – are getting assistance with their premiums, even though many are living above and even well above poverty, Tanner writes.

Since most people on the exchanges previously had health insurance, what President Obama’s much-lauded 7 million signup number mainly means is that the federal government is now providing massive new assistance to your fellow citizens:

Subsidies, of course, do not actually reduce the cost of those insurance plans, but simply shift part of that cost from the purchaser to taxpayers. Moreover, since the Rand Corporation estimates that it’s possible as few as 858,000 enrollees were previously uninsured, millions of Americans who were paying for their own insurance have now moved onto the government dole.

Millions more are gaining health insurance by joining Medicaid, raising the number on this raw welfare program by 5.2 percent. How likely are they to ever get off it, especially once employers start dropping health insurance and allow the government to provide it instead.

“In some states, such as West Virginia, Vermont, and Massachusetts, more than one out of every five people will be receiving Medicaid,” he writes.

Of the 3-4 million people new Medicaid recipients, many may have previously had insurance but are now taking your money to pay for it.

No one knows yet how many Obamacare Medicaid recipients dropped private coverage as a result of the ACA, but some data suggest that it could be quite high. For example, a study for the Veterans Administration found that as many as 82 percent of working adults who enroll in Medicaid under Obamacare will have had private insurance.

Obamacare is helping accelerate the trend in the last several decades toward a level of government dependence that is destroying the country’s soul, not to mention its work ethic.

In 1965, just 22 percent of all federal spending was transfer payments. Today the figure has doubled to 44 percent . . .

Transfer payments are almost 35 percent of salaries and wages. If one counts government employees and contractors as well as recipients of government programs, more than half of Americans receive at least half of their income from the government.

If that’s not a Socialist economy, I don’t know what is.

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20 Responses to Obamacare and the March Toward Socialism

  1. The House holds the power of the purse. They may not be able to do much, but surely they can do something. The only action in opposition to Obamacare on the part of legislators is more hot air.

  2. Remember how I kept asking how could people get insurance past the “deadline”? Well, they can’t. No one can get it for 7.5 mos now–so too bad if you lose your job, start a business, etc.This is supposed to help people?

    • No, it’s not, and I doubt it ever was.

      The idea from the getgo was to crush the American spirit.

      So far, they’ve done a darn good job of it.

    • There are some instances where you can sign up during this time frame, Marriage, divorce loss of job. It is still ridiculous that the market is closed. Gotta love that Obamacare.

  3. This is something I’ve been noting since the beginning. Democrats think it’s “progress” to make insurance unaffordable for most people and then say “Here’s a nice subsidy from your generous, compassionate Democrat government (so you can still have what we’ve taken away from you).” They also think it’s wonderful when people choose to work less, or spend all their time being “artists,” so other people will pay for their health needs.

    Democrats, of course, heartily believe that we the citizens should not have the freedom to choose the insurance that actually meets our own needs and circumstances. If your government-approved plan doesn’t cover your doctor or the treatment plan you were on, Democrats keep chanting “Your old policy was junk! You should be grateful you have a better policy now!”

    They will say you don’t know what was good for you; your previous doctor didn’t know what’s good for you; but the government does. I’ve actually seen this argument made by a Democrat against someone who lost her policy and had to get an inferior Obamacare one.

  4. Well this is one more fiasco announced as a success by this incompetent White House. And more headaches are on its way. I just read an article in Zero Hedge about Russia and China about to sign a “Holy Grail” deal on energy. There have been many signs of this acoming, but Barry and Kerry are blind amateurs. If Russia was to be isolated by the US and Europe they would turn eastwards and that´s what´s happening. If there is a deal it will be a big game changer, it might also be a very serious blow to the petrodollar.
    So now again, what was Barry doing in Saudi ? A camel ride in the desert ? Tasting some ecological dates ? Or was he chased out of the tent ?

  5. In addition, the more your household income rises, the more you pay for healthcare. So success and hard work are penalized and these young people will soon realize that all promotions and raises in pay will be penalized in the form of higher healthcare premiums (as they subsidize the 5.2% increase in Medicare recipients and healthcare for prisoners)

  6. This Administration is conducting a “Marxist March” to chaos, to be followed by a Communist takeover from within. All of the “dots” do connect to their goal.

  7. …”March Towards Socialism”…
    No offense Keith but I have been saying that since 2008 & 2012 when the IDIOTS “voted” for this anti-American, Neo-Socialist ‘Barack Hussein Obama’.

  8. There is another big issue for those who get the ADA Medicaid portion of Obamacare haven’t found out and hasn’t been discussed. Upon one’s death, ADA recoups ALL the past benefit costs from the users Estate.

    Think you were going to pass on a little something for your children? Nope, Obamacare will seize your assets upon your death.

  9. If you are looking for ways in managing Obamacare then visit freedomcarebenefits.com to see for yourself that there is a solution for it. Learn how you can deal with without worrying too much.

  10. Vladimir Lenin: “Socialized Medicine is the Keystone to the Arch of the Socialist State.” That’s why Obama and the 80+ Congress critters who are members of the Democrat Socialists of America (DSAUSA) are hysterically motivated to make sure ObamaCare succeeds. And remember HillaryCare and her efforts to make that happen.

    http://www.thegatewaypundit.com/2010/03/vladimir-lenin-socialized-medicine-is-the-keystone-to-the-arch-of-the-socialist-state/

    http://www.therightperspective.org/2012/04/01/socialists-in-congress-revealed/

  11. “In some states, such as West Virginia, Vermont, and Massachusetts, more than one out of every five people will be receiving Medicaid,” he writes.”

    What’s up with Vermont and Massachusetts? Aren’t the pretty well off states? I live in West Virginia and can testify that there is a lot of poverty here — the idea that one in five is on Medicaid doesn’t surprise me much when I look at the dearth of real jobs, poor education, and, of course, the incentive to have a lot of kids by different dads and then raise them on checks and charity.

  12. And unfortunately, many folks feel entitled to all the govt. largesse. I saw the figure of how many people are on the Medicaid wagon and my jaw dropped.