Obamacare’s Negative Impact on Economy

By Bruce Davis, Principal, Lee & Associates Atlanta: Obamacare has been a bone of contention in the battle that has frozen the federal government. For the economy, its impact will be much more destructive.

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The best weapons against poverty are education, free and open markets, self responsibility and the profit motive, functioning ethically, without regulation and interference. Obamacare, or the Affordable Healthcare Act, represents the exact antithesis of these conditions.

That it has been a lightning rod for political divisiveness and a contributor to the shutdown of our government points to a void of leadership in all three branches of our government, poor judgment and a critical lack of good old down home problem solving. This Congress and executive branch are patently unable to offer solutions that are bereft of political hand grenades and policy making without divisive hidden agenda items. Hiding such social agenda items within the legalese of a 2,600-page document that nobody read before voting on it exemplifies more than ever how dysfunctional our leadership has proven to be.

Pundits on the right are the first to say that today’s healthcare infrastructure and delivery complex are burdened and in need of a complete makeover. Driven by the machinations of large institutional Insurance and drug companies, the costs of healthcare have become so bloated as to make them untenable. Alas, we admit that medicine has proven that policy overhaul and government intervention are necessary.

A basic truism is that the American economy needs jobs. The engine of job creation should not be government (here Obama has been superlative) and cannot be large corporations; our national strength has and always will be in the creation and growth of small businesses.  Therein lies my biggest criticism of Obamacare: It seeks to burden, if not destroy, small business. The result of Obamacare is that we will become a nation of part-timers, as evidenced in its policies regarding the size of a company’s roster (50 employees) and the amount of hours worked  (less than 30 hours per week will be classified as “part time” and be apportioned differing healthcare obligations). For the authors and policy makers not to think the implementation of Obamacare would lead to massive layoffs in the small business sectors of our economy is delusional.

The economy needs job growth to prosper. Without job growth, consumer demand falters.

Disclaimer: The views and opinions expressed in capital markets columns do not necessarily state or express those of CPE.