Home Depot joins the list of employers cutting back on medical coverage for their workers as ObamaCare looms. This should not be surprising. It is a logical consequence of the incentives set up by the scheme, just as surely as colleges are now cutting back on the courses they offer, in order to keep more of their faculty from crossing the “full time” threshold and thus triggering greater obligations.
Many people roll their eyes at “those idiots in Washington!” as if these obvious outcomes are somehow a surprise. No, the people in Washington have trained economists on their staffs. They understand incentives, even though their rhetoric suggests that they don’t. Over the coming years, as the delivery of US healthcare suffers and citizens become justifiably outraged, they will be led to demand greater and greater government involvement to thwart the “greedy” insurance companies and “overpriced” hospitals. This is part of the plan, as some glib proponents of ObamaCare have let slip.
For example, Senate Majority Leader Harry Reid in August was interviewed for a PBS program “Nevada Week in Review” in which the following exchange occurred:
“What we’ve done with Obamacare is have a step in the right direction, but we’re far from having something that’s going to work forever,” Reid said.
When then asked by panelist Steve Sebelius whether he meant ultimately the country would have to have a health care system that abandoned insurance as the means of accessing it, Reid said: “Yes, yes. Absolutely, yes.”
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