Another problem with the Democrats’ Healthcare Legislation

Monday, August 10th at 9:23AM EST

5 Comments

There is another problem with the Democrats’ healthcare legislation that hasn’t been talked about much. It makes a heck of a tradeoff.

In exchange for universal healthcare under a government run plan, Donald Luskin points out an independent analysi that says we’ll see wage stagnation.

That’s right — in exchange for healthcare, don’t expect to ever get a pay raise.

If we expanded health insurance coverage but our current health cost inflation rate continued unabated, the higher overall costs would result in falling wages at the bottom of the earnings spectrum and very slow wage growth on up the earnings distribution. These dismal wage outcomes would persist over at least the next couple of decades, possibly longer.

In other words, only the rich will benefit. The poor and middle class will see their earning power reduced, their disposal income cut, and their potential to rise up from the lower and middle classes cut off.

All of this will be thanks to Obamacare.

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Keith Hennessey had a good break down of this study.

Brian Simpson (Diary) Monday, August 10th at 10:10AM EST (link)

Let’s put this into sentence form:

* If health care reform finances universal coverage primarily through a mandate to buy health insurance, and if health cost growth continues as it has in recent years, a median worker’s real wage growth rate would be more than cut in half.
* If health care reform instead accelerates health cost growth because expanded insurance coverage means more health services are consumed, that same median worker would see his real wages shrink.
* For lower-wage workers the picture is worse. If health care reform finances universal coverage primarily through a mandate to buy health insurance, and if health cost growth continues as it has in recent years, a worker in the 3rd income decile would see no real wage growth.
* And if health care reform instead accelerates health cost growth because expanded insurance coverage means more health services are consumed, that same low-wage worker would see his real wages shrink dramatically.

Read the rest of his analysis here.

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wait, we can't have it both ways

regnad Tuesday, August 11th at 10:04AM EST (link)

Either the obamacare disincentive for employers will run them completely out of healthcare provision or it will drive the cost to the employer through the roof – which is it?

"We?"

Moe Lane (Diary) Tuesday, August 11th at 10:11AM EST (link)

Riiiiiighhhht. Bored with Crooks & Liars, were we?

Shoo.

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He's got one of those polling mice

PGDeFreese (Diary) Tuesday, August 11th at 10:13AM EST (link)

in his pocket. Those rodents really skew the nummbers!

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He's got one of those polling mice

PGDeFreese (Diary) Tuesday, August 11th at 10:13AM EST (link)

in his pocket. Those rodents really skew the nummbers!

_________________

Thou art the Great Cat, the avenger of the Gods, and the judge of words…-Inscription on the Royal Tombs at Thebes