Sunday, April 4, 2010

ObamaCare and Other Social Engineered Entitlements

President Franklin D. Roosevelt signs into  law the Social Security Act of 1935

President Lyndon B. Johnson signs into law the Medicare bill on July 30, 1965

President Barack Obama signs into law  the Patient Protection and Affordable Care Act (aka ObamaCare) on March 23, 2010

Tuesday, March 23, 2010, marked an historic day in the annals of American government. On that day the President of the U.S. Barack Hussein Obama signed into law HR 3590, the Patient Protection and Affordable Care Act, affectionately and forever known as ObamaCare. That day is historic in that ObamaCare is the most sweeping piece of socialist legislation ever imposed on the American people overtaking 1/6 of America's economy and it's features impact huge aspects of other American industries.

I use the word “imposed” since we all know by now how shameful the progressive/socialist party (formerly known as the Democratic party) crafted and enacted this most unconstitutional of legislations using treacherous locked-shut backroom “lets make a democratic deal” tactics and their arrogant refusal to share its details with the public given its immense unpopularity. Regardless, Obamacare now joins Social Security and Medicare as the third and largest social entitlement cost in the triad of socially engineered programs thrust upon American's collective economic backs.

If we go cruise down memory lane as to the original cost estimates and intentions of the other two social entitlements dwarfed by ObamaCare, it is alarming to see how the well-intentioned selling points made by progressive/socialists to assist Americans in their retirement and health care have contributed to the systematic bankrupting of America.

Social Security
The first progressive/socialist entitlement, the Social Security Act, was enacted in 1935 and signed into law by President Franklin D. Roosevelt. Upon signing this “New Deal” entitlement, President Roosevelt spoke of protecting the average citizen from the perils of unemployment,

"We can never insure one hundred percent of the population against one hundred percent of the hazards and vicissitudes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age."

Protection President Roosevelt? According to the 2009 Social Security trustees report this Social Security “protective” entitlement will have negative cash flow and will pay out more in benefits than it collects in social security taxes in 2010. The unfunded debt of the Social Security program is $18 trillion and the trustees of the Social Security administration have stated that the Social Security reserve will be exhausted in 2037. It took 100 years since 1935, but the progressive/socialists have managed to mismanage "protection" of our federal retirement funds quite nicely and it took only three generations time to accomplish that neat feat.

The second progressive/socialist entitlement, Medicare, was enacted in 1965 and signed into law by President Lyndon B. Johnson under the Social Security Amendment of 1965. Upon signing this “Great Society” entitlement, President Johnson remarked,

“The benefits under the law are as varied and broad as the marvelous modern medicine itself. If it has a few defects--such as the method of payment of certain specialists-then I am confident those can be quickly remedied and I hope they will be.”

Has a few defects President Johnson? When Medicare was enacted, the House Ways and Means Committee predicted that the new Medicare program would cost about $12 billion in 1990. Actual Medicare spending in 1990 was $110 billion; off by nearly a factor of 10. According to the 2009 Social Security trustees report, as of 2010 this woefully abused entitlement’s projected annual assets drop below projected annual expenditures by 2012. The projected date of Medicare’s Trust Fund exhaustion is 2017 and the unfunded Medicare debt now stands at $90 trillion dollars. This second of the entitlement triad will be bankrupt in approximately 50 years after it’s original enactment into law. It seems that the bankruptcy rate is accelerating by 50% with each new progressive/socialist entitlement program.

Taken together Social Security and Medicare entitlements have an astounding total unfunded debt of $108 trillion, and each U.S. taxpayer’s portion of that debt is approximately $360,000!! Do we see a trend here in how the federal government’s chronic mismanagement of social entitlements systemically leads to bankrupting the American economy?

If we take a breath and ponder the financial burden imposed on current and future American taxpayers laid upon them by these two miserably failed progressive/socialist programs, one would logically rationalize that societal entitlements are doomed for financial disaster and we would never again allow them to rear their ugly head. But no, the Obama administration decides in their inimical “wisdom” that we must once more go “unto the breach” of social entitlements. In totalitarian fashion, the progressive/socialist leadership’s unholy trinity of Obama, Pelosi and Reid force-fed the American taxpayer the mother of all government social entitlements, “ObamaCare”.

ObamaCare is the "Cowboys Stadium" of progressive/socialist entitlements. Before signing ObamaCare, President Barack Obama made the following closing remarks about his cornerstone legislation,

“And we have now just enshrined -- as soon as I sign this bill -- the core principle that everybody should have some basic security when it comes to their health care.”

Enshrined that everybody should have basic security when it comes to health care, Mr. President? Where does one begin to dismantle such beguiling rhetorical nonsense? Even Presidents Roosevelt and Johnson's remarks had the decency, courage and integrity to hedge a bit on the future prospects for success of their entitlements. Obama’s audacity of deceit in his ObamaCare bill - signing remarks surpass even his remarks at the House Republican retreat when he said to the group of GOP lawmakers, “…I am not an ideologue." The internet slang “lol” could not be more of an understated response.
  • ObamaCare is an unconstitutional $2.5 trillion cost to the American people that by all estimates, including the CBO, will cause an increase in health insurance premiums for most Americans and 17% higher premiums for young, healthy adults.

  • ObamaCare will bankrupt over half the nation’s states and cause increased state income taxes due to shifting of Medicare patients on to state Medicaid rolls.

  • ObamaCare increases health-related corporate and personal income taxes by $600 billion.

  • Corporate tax hikes will be passed on to consumers in the form of higher costs and the ObamaCare personal tax hikes that include the nefarious “medicare” tax on investment income will compound further decreases in economic growth already created by other Obamanomic polices, i.e., his failed $800 billion so-called stimulus package and his skyrocketing budget deficits.

  • The unintended consequences of this disastrous legislation are already seeping out. Major American corporations are expecting enormous additional charges to their balance sheets estimated at $14 billion due to the ObamaCare elimination of retiree’s prescription drug subsidies. These corporations are projecting massive layoffs due to this ObamaCare business charge.

  • Also, lest we forget, the unholy trinity was also crafty enough to sneak a socialist policy within the larger socialist policy, by incorporating into ObamaCare a total federal socialization of student loans which will cause 31,000 in lost jobs. And, surprisingly enough, the unholy trinity didn’t care to listen to American's opinions about that change either!
As artfully detailed in the American Thinker, the domino effect of ObamaCare will eventually drive U.S. health insurers into bankruptcy and the “single-payer” government system that Obama and Pelosi always wanted initially will be THE only health insurance option for Americans.

For perspective, Medicare covers approximately 50 million people today and is virtually bankrupt due to federal government mismanagement, after only 50 years since it's origin. ObamaCare is to cover all Americans, over 300 million people. Do the math as to how long it will take for the incompetent progressive/socialists within the federal government to bankrupt ObamaCare. If Social Security took 100 years, Medicare 50 years we can only assume that within a generation, 25 years, ObamaCare will be bankrupt

How is the American economy expected to survive this ObamaBurden? To quote Charles Krauthammer, “As the night follows the day, VAT follows health-care reform”. In order to cover the overwhelming costs of this very un-American-like and very European-like form of socialism, we must heed Mr. Krauthammer's prognostications of a forthcoming European-like ObamaVAT.

However, the most heinous crime imposed on Americans by ObamaCare is that in an era of an Obama-driven stagnant economy, unprecedented budget deficits and joblessness, ObamaCare will cause tremendous job losses due to the above burdens placed on the private sector and ObamaCare’s unconstitutional health care purchase mandate for all businesses and individuals.

The economic and unconstitutional carnage imposed on Americans through Obama-like progressive/socialist entitlements is clear and evident. But what are the various accepted definitions of socialism, how did Progressive/Socialists manage to infect American government and politics and what is their mission? 

Look for future posts from Political Policy on the keys to identifying the Obama-like progressive/socialist's agenda, tactics, strategies and mission to convert America from a country of freedoms and liberties to one of totalitarianism and suppression.

During the interim please listen to the attached 2001 radio interview with then Illinois state senator Barack Hussein Obama espousing his progressive/socialist philosophy, manifested in his presidential agenda and mission and culminating in his ObamaCare progressive/socialist entitlement legislation.

ObamaCare, the ultimate progressive/socialist backdoor pass to destroying American freedoms and liberties. A pass that must be repealed and replaced with extreme prejudice.

1 comment:

Matt said...

You wrapped this up nicely. Single payer and additional taxes are the goal.