Tuesday, March 23, 2010

Why Obamacare Could Cost Ten Million Jobs

By Robert McHugh, Ph.D
McHugh's Financial Forecast & Analysis
Special update sent to current and ex-subscribers
March 3rd, 2010

An analysis of Obamacare is not a political statement. It is a necessary examination of the largest single spending bill in the history of any nation on earth, ever. It involves $1.0 trillion of spending, a half trillion of new taxes, and a half trillion of Medicare cuts. Of course it will have an impact on the economy, on markets, on the psyche of 300 million individuals in America and many millions of people outside the U.S. Technical analysis is a study of the collective psyche of all participants in all markets everywhere, which manifests itself in chart patterns, which is the language of the markets, telling us where prices are headed next. Fundamental economic analysis is the backdrop for our technical analysis, and this bill has huge fundamental economic and psychological impact. As this bill goes from conversation to reality, we will see the true contractionary power of what has just happened.

A lot of people do not understand that this Health Attack Act is NOT free National Health Insurance. It covers 32 million more Americans because it mandates, i.e. orders, 32 million people who do not have health insurance to buy it.

Here is a fact most folks don't realize: Did you know that 83 percent of all Americans already had Health Insurance coverage before Obamacare was legislated? Yep. The new Obama Health Care Law will spend $1.0 trillion to order Americans to buy health care insurance to get the percentage up from 83 percent to 95 percent. Under Obamacare, at the most optimistic estimates, at the end of the day, there will still be 5 percent of Americans who do not have Health Care insurance.

At least 13 States are about to file a lawsuit against the new Health Attack Law, claiming it is unconstitutional. They will be arguing that it is unconstitutional for the Federal Government to order individuals to buy anything, including health insurance, as this law mandates. Further, they will argue that it is unconstitutional for Congress to fine or tax someone just for living (if they do not purchase health insurance). They will also argue that the new law infringes on each state's sovereignty. The Health Attack Act shifts billions of dollars of costs for Medicaid upon the states, placing at risk a state's ability to provide education, prison incarceration, foster care, and other essential services benefits to residents. The Federal Law, it will be further argued, is forcing states to implement programs they cannot afford. They will argue that Article I of the Constitution prohibits the Federal Government from punishing people for not getting involved in an interstate commerce transaction.

The thirteen states joining the lawsuit so far are Florida, Texas, Virginia, South Carolina, Alabama, Louisiana, Idaho, Nebraska, Pennsylvania, Washington, Utah, North Dakota, and South Dakota.

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