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The Magificent Failure of ObamaCare

Written by Gary North on January 6, 2014

From the point of view of a defender of liberty, ObamaCare is the most magnificent welfare state program of our generation.

Premium expenses are going up for most people. Deductibles are going up for most people. Cancellation letters are going out to millions of people. The number of people signing up is less than the number of people who have received policy-cancellation letters. In short, the costs are being front-loaded, and the benefits are being back-loaded.

Always before, welfare state politics has been based on a specific strategy: “Benefits first. Costs later.” This is called front-loading and back-loading. The best examples of this process are Social Security and Medicare. The costs are now coming due for these two programs. According to Prof. Lawrence Kotlikoff, the back-loaded cost of the two programs is now in the range of $200 trillion, present value. But no one really cares. Those costs will be imposed in the future. Politicians care only about the immediate future, namely, the next election.

The politicians come to the general public, and they promise that the state will intervene on the side of the middle class. The state will do so also to help the poor. The costs will be borne exclusively by the rich. Politicians are careful never to define how much money is going to be paid by the middle class, especially the upper-middle-class. This is always kept secret. The assumption is that only the wealthy will pay for the benefits that will be given to the middle class and the poor.

Then, step-by-step, the costs are imposed over years. There is a kind of definition creep involved. More and more of the middle class is defined as being rich. This is never made public. But it does become operational when the tax bills come due.

The way around this has been to increase the amount of borrowing by the federal government, and by other agencies of state and local governments. But, primarily, it has been done through the federal government.

In order to keep interest rates low, the Federal Reserve System intervenes in order to create money out of nothing, in order to purchase the IOUs of the United States Treasury Department. This conceals the extent of the cost of the welfare state programs that have been passed into law by an enthusiastic Congress, and supported by an enthusiastic electorate.

By front-loading the benefits, and by back-loading the costs, the politicians have extended the welfare state to encompass virtually every area of life.

ObamaCare is the exception. ObamaCare is front-loading the costs, and it is back-loading the benefits.

(For the rest of my article, click the link.)

Continue Reading on www.garynorth.com

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38 thoughts on “The Magificent Failure of ObamaCare

  1. Failure is its own best demonstration…. and Obamacare's failures point to the potential disaster of "Single Payer".

  2. roadtosurfdom says:

    Gary North is brillaint.

  3. Sorry Gary, you're wrong again. Over 6 million people have signed up for the ACA, far more than who were issued cancellation letters, and those with cancellation letters are able to keep their insurance for another year or sign up for another, better, plan. Premiums are going down for most people. Deductibles are going down for most people. Just because you believe something is true doesn't erase the facts. The facts still stand.

  4. In his own mind, maybe. In the real world, he's a massive failure.

  5. Obamacare is NOT about health care; it is about CONTROL of a significant portion of the economy. And as usual, the lefty-loosies want you to have ZERO say about it. Just say NO to lefty-loosies !

  6. What planet are you standing on? Or better yet what have you been drinking?

  7. Careful, John, lefty-losers will call you a racist. It does not matter if that is true or not. The idea is for you to shut up and sit down.

  8. The state has intervened on behalf of the middle class. It has cut their disposable income so they wont have the problem of trying to figure out where to spend it. The state has managed to cut many peoples working hours back so they have more leisure time. They have kept the price of fuel high so the middle class wont be driving around wearing out their cars. Meanwhile they have penalized the rich by forcing the stock market higher with QE and increasing the accounting costs of the wealthy. A little more of their help and we could achieve third world status. See my blog at http://cranky-conservative.blogspot.com

  9. i wil not shut up or sit down
    i will lay down when i am DEAD
    not before
    and that is my finale answer
    the truth will set us free

  10. Obama to me is God's punishment on earth!!! Man, he picked the perfect thing to bring people to their senses. The reaction to Mr Punishment has been mighty powerful for good proud American citizens. God also was wise when he made Mr. Punishment a stupid, backward, blockhead. Unfortunalty, there so many of the same thing,running Congress, and Senate. I would love to be here when the s— hits the fan!! Maybe God will granr me that favor!!

  11. Sorry Road…
    Gay has presented a falsity in his examples. Soc. Sec. is not failing because of the bad logistics but because it is being raided by current congresses to pay for many of thieir bad bills. This does ot make it good, bacause the possibility to raid the "Trust Fund" is itself a condemnation of the law.

  12. Amen !!!
    He must be drinking the Obama Kool-Aid.

  13. Obamacare, or the PPACA to use its correct designation, is a preview of the coming Fascist Dictatorship. Just look at it. It is a set of regulations enforced as if they are law, in violation of Article 1, Section1 of the Constitution, which allows the government (i.e. dictator) to blame the businesss for his failures while claiming credit for what is accepted as permissaaable by th evoters.

  14. Elizabeth says:

    Every citizen, all insurance personnel, all politicians, and high school students should have known that fees, penalties, taxes, and mandates have nothing to do with healthcare. They do have something to do with control.
    So why are we in this mess! How about this is the program for Democrats Only if they like it so much.! Let them do the signing on, the paying, and the waiting etc.
    Next, better turn healthcare over to the states ASAP.

    Now, really what is Obama pushing next? Will it go through too?

  15. There is a ship stranded at the South Pole as I write this, filled with researchers and true believers who went there to PROVE once and for all that human-caused global warming really is scientific fact, when it isn't. They are stuck in an expanding, record-setting ice sheet, waiting desperately to be rescued by people who live in the real world and who understand that human-cause global warming is a myth.

    So it is with people who think Obamacare is a smashing success and vindication of their belief system. When it isn't. It is pointless to try to reason with these zealots.

  16. WhiteFalcon says:

    The last I heard it was about two million that had visited the web site, and they really don't even know how many actually signed up, and they don't know how many of those that signed up were actually successful.

  17. WhiteFalcon says:

    I think they are shooting for fourth or fifth world status.

  18. Shane, we know you are a lying shill for Obama, so we know the 6 million people is a made up number.

    The real question is, why are you now a lying shill for Tepco in Japan?

  19. A Patriot says:

    True that Congress looted the so-called "trust fund," but it will also be insolvent on it's own, as reality catches up with the Ponzi scheme it is.

  20. Cry baby

  21. Way to count Medicaid enrollments, idiot.

    Lets find out what happens when you increase demand against a fixed supply? More patients vs doctors, nurses etc. consider what’d happen if you were bidding on an item on ebay and Obama pulls up with a bus full of people to bid on your item. What a great idea?!?!

    Lets force healthy people to buy insurance. Lets force healthy people to pay the same as an unhealthy person, i.e. a bad driver getting to pay as low as a good driver.

    The true obamacare disaster is making poor people buy insurance with ridiculous deductibles. E.g. Monthly payments for insurance you ant afford to come out if pocket to use. What a brilliant plan!!!

  22. 1baronrichsnot1 says:

    Shane, I see you have drank the cool aid. Not 6 million but 2 million have signed up, and less than a mill have paid, They go to the doctor, can't prove they have ACA and are turned away! Happening nation wide! Turning them away without treatment Shane, you should try yours out. Really though, do you really have proof on your person you have Obamacare? Probably not, but Haiti scam artist and hackers now have your information. The website isn't secure! Now as far as being able to keep insurance that really works another year, The insurance companies will need months to reformulate and compile these policies they don't exist anymore, It will require work for making them available! Can't happen overnite as obama ordered! The cost of keeping them is going to triple! I call this abject failure and a cluster frak! All deductables are going up, lower deductables are just out of the realm of cost for most if not all families! Are you a gov't worker, muslim, union worker, page, congressional staff member? You are exempt! If so don't even talk about it, you don't understand what its all about!

  23. More like Odumbo Whiskey at 160 proof. So slobbering drunk that even the simplest concepts are beyond his grasp.

  24. Isn't it amazing at just how RELIGIOUS these people are? They insult people who are Christian but are just as frothing at the mouth believers as the most wild-eyed Baptist fundy. LOL!! It's so hilarious. The comedy from these brain dead morons is endless.

  25. "The horror stories are going to begin very soon. These horror stories will be people who have had their deductibles increased, and who are hit by a medical bill."
    Gary, I hate to break it to you, but this is wishful thinking. The media WILL NOT report anything as damaging to the Obama regime as this. Yes, it will be reported on the web, but won't reach the non- or barely-literate majority.

  26. No one's crying but you.

  27. Speaking of idiots… congrats on boarding the moron train.

  28. There's a huge difference between sea ice and land ice, fool. Leave the science to the experts.

  29. He keeps repeating that horror stories are going to begin very soon, but they've been saying that for years. Hasn't happened. Won't happen.

  30. All Citizens Matter says:

    Had there been no income gap there wouldn't have been any insolvency to worry about.

  31. You do understand that the Medicare enrollees are eligible BECAUSE OF the ACA and its Medicare expansion, right? Keep drinkin' that Tea Party kool-aid.

  32. 6 million? Not true. Premiums going down for most people? Again, not true.

    Liberals don't use facts or reason. Only lies and feelings.

  33. "It's a brand-new, special kind of ice that you don't understand yet! It's not 'ice-ice', it's 'ice-plus'" 😛

    Pardon me while I return to an experiment I'm conducting in my kitchen, where I have filled a soup pot with water, turned on the heat to the stove, and am waiting patiently for it to turn into a block of ice. Any moment now….any moment….just wait…be patient….erk.

  34. During the 3 ½ years of WWII that started with the Japanese bombing of Pearl Harbor in December 1941 and ended with the surrender of Germany and Japan in 1945. The U.S. produced:
    22 Aircraft Carriers
    8 Battleships
    48 Cruisers
    349 Destroyers
    420 Destroyer Escorts
    203 Submarines
    34 Million Tons of Merchant Ships
    100,000 Fighter Aircraft
    98,000 Bombers
    24,000 Transport Aircraft
    58,000 Training Aircraft
    93,000 Tanks
    257,000 Artillery Pieces
    105,000 Mortars
    3,000,000 Machine Guns
    and 2,500,000 Military Trucks
    We put 16.1 Million Men in uniform in the various Armed Services.
    Invaded Africa
    Invaded Sicily and Italy
    Won the battle for the Atlantic
    Planned and executed D-Day
    Marched across the Pacific and Europe
    Developed the Atomic Bomb
    and ultimately conquered Japan and Germany
    It's worth noting, that during almost the same amount of time, the current administration couldn't build a functioning website!

  35. Texas Chris says:

    Imagine what Americans could have built if we had avoided WWI and thereby WWII, and not spent so much blood and treasure on wars?

  36. The Gov't will not even put out the figures for how many people have signed up and paid. They only say how many have signed up (or looked at things) this indicates that very few have paid and therefor are not covered by ObamaCare. If you take anything else out of this then you are a dreamer————-

  37. Blackcayman says:

    Might as well imagine Utopia where unicorns are the peacegivers and life is sunshine and lolipops…

    Hitler murdered 11 Milion people and Japan attacked us…You silly Liberals live in a world where there are no consequences…

  38. "congrats on boarding the moron train."

    Where Shane is riding 24/7.