President Obama and Secretary of Health and Human Service Kathleen Sibelius have decided to drop on key element of the Patient Protection and Affordable Care Act (ObamaCare)
The key provision being dropped, Community Living Assistance Services and Supports (Class) would have provided long term care for the elderly.
In a bold move, one also reminiscent of their conscious unwilling to heed economic realities, the Obama Administration has acknowledged that program could not be self-sustaining through its premiums.
Austrian economists from the founder Ludwig von Mises to today have all exposed the illogical folly of forcing people to pay into a reserve, then draw on its resources for the future. Only the sick and elderly, who no longer work, would pay into a voluntary reserve, which would in turn requiring beneficiaries to pay higher premiums, which would then force out current clients and scare away future beneficiaries, therefore further raising premiums.
Such is the madness that springs forth from central planning. No matter how well-placed the intentions, an economy of "pay in now, pay out later" is doomed to fail, lacking the requisite foresight to allocate unforeseeable needs with limited resources.
It is a sad, arrogant shame that the Obama administration wasted 19 months in research and projections to determine what economists have confirmed long ago.
Let's hope this significant setback, a political move if nothing else, will further expose the fundamental error of mandating every citizen purchasing health insurance while forcing the government to subsidize those who cannot afford it or choose not to purchase it.
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