Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
The Next Catalyst for Gold - 23rd Jan 20
5 Cyber-security considerations for 2020 - 23rd Jan 20
Car insurance: what the latest modifications could mean for your premiums - 23rd Jan 20
Junior Gold Mining Stocks Setting Up For Another Rally - 22nd Jan 20
Debt the Only 'Bubble' That Counts, Buy Gold and Silver! - 22nd Jan 20
AMAZON (AMZN) - Primary AI Tech Stock Investing 2020 and Beyond - Video - 21st Jan 20
What Do Fresh U.S. Economic Reports Imply for Gold? - 21st Jan 20
Corporate Earnings Setup Rally To Stock Market Peak - 21st Jan 20
Gold Price Trend Forecast 2020 - Part1 - 21st Jan 20
How to Write a Good Finance College Essay  - 21st Jan 20
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Impeachments & Healthcare

Politics / US Politics Oct 30, 2019 - 02:19 PM GMT

By: Rodney_Johnson

Politics Many Democrats really want to impeach President Trump. According to a Pew Research poll conducted after the latest round of Democratic debates, 40% of Democratic respondents said that beating Donald Trump was the number one issue in the upcoming election. It’s not domestic policies, not foreign policy, not protecting any class of people, but simply making sure that, come January 2021, his name is not on the White House door.

Obviously, this goes far beyond wanting one’s political party to win. I’m not going to list out reasons why. We’re all well-versed in the current political battles. But focusing on removing him from office either before or during the election leaves precious little time to discuss national issues.


Healthcare Is Number Two

Whether the next president is Donald Trump or someone else, the sun will still rise, as the earth will still rotate. And we’ll still face a host of problems that we can’t outrun or outgrow. On the financial front, healthcare is at the top of the list.

While almost half of Democrats listed booting Trump as number one on their hit list, healthcare came in second. And it was the most important issue to all voters in exit polls after the 2018 elections. It’s easy to see why.

The federal government just announced that Affordable Care Act premiums for 2020 will fall an average of 5%, after dropping a modest 1% last year. That’s great, but it comes after premiums shot up 78% from 2013 through 2018.

The Kaiser Foundation reports that overall health insurance premiums have increased 54% since 2009, and now stand at $7,188 for single coverage and $20,576 for family coverage.

That’s a lot of money, and explains why a single-payer system (Medicare for All, or some variant) has gained support over the last few years.

So, What’s the Plan?

Just over 50% of voters say that it’s the government’s responsibility to make sure everyone has health coverage, but there’s not much consensus on how to pay for it.

Elizabeth Warren took heat in the last debate for not having a detailed proposal to provide coverage to everyone in the nation. Bernie Sanders clearly tells people that his plan will include a tax hike for almost everyone, while Warren claims she won’t do anything that raises costs for middle-income families.

She later issued a statement that her campaign is working diligently to draft a proposal. That’s probably political speak for “it’s going to be so incredibly expensive that I haven’t figured out how to sell it yet.” Sanders estimates Medicare-for-All will cost an additional $13 trillion over 10 years after accounting for savings elsewhere. Others have estimated the cost as high as $36 trillion.

But all these estimates have one thing in common: They assume that if the government provides healthcare coverage directly to consumers, then companies will immediately shift their health spending dollars to wages. If a company pays $3.50 per hour for a worker’s healthcare insurance, the company will immediately raise that worker’s compensation by $3.50 if it no longer has to pay for healthcare. This is why Warren and others talk about net costs to consumers: They balance out increased taxes with higher incomes.

Call me Skeptical

Most workers pay at least part of their healthcare premium, so their potential pay bump wouldn’t be equal to the full tax hike if the two numbers were equal. And how do you demand that a company comply at all? Peer pressure or shame might work for large companies in the public eye, but small firms? Do employees threaten to quit en masse if they don’t get a commensurate pay hike? And what about employees who choose different levels of coverage? Do they all get an “average” pay bump that rewards some but punishes others?

And what about year two?

It’s likely that healthcare costs will jump in subsequent years because so many more people would be covered with almost zero deductibles, which will drive up use of the system and strain healthcare resources. Our healthcare tax, or whatever mechanism is used to collect the funds to pay for it, will increase, and there won’t be a company standing around ready to take the fall for higher prices.

None of this supplies an answer, but it raises a lot of questions that we should be debating in the public square ahead of the next election. Boomers are getting older. Healthcare costs are taking up bigger chunks of the paychecks of Millennials, who then can’t afford to reach milestones in life. We need to figure this out before healthcare crowds out more spending from our national budget and our personal pocketbooks.

Rodney Johnson

Follow me on Twitter ;@RJHSDent

By Rodney Johnson, Senior Editor of Economy & Markets

http://economyandmarkets.com

Copyright © 2019 Rodney Johnson - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Rodney Johnson Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules