Get government out of health care! Oh, really? How?
Eliminate Medicare? No one wants that! And wait – Medicare IS the government’s healthcare since 1965.
Oh, OK. Let’s eliminate the Affordable Care Act (Obamacare)! But wait again. The Affordable Care Act (“ACA”) takes health insurance away from the powerful health insurance lobby and places it in “exchanges”. That sounds like increased marketplace competition. Is it?
Puzzling? Does the government-healthcare-pharmaceutical complex deserve a parallel warning to President Eisenhower’s famous warning against the powerful military-industrial complex?
Generally, government involvement in business and our daily lives has had both good and bad consequences. The Clean Air Act and the Clean Water Act recovered thousands of square miles of forests from acid rain and saved people from breathing disorders common near the steel mills of Gary, Indiana, and Youngstown, Ohio. (I remember as a child holding my breath in the car while driving through Gary.) However, healthcare legislation does not have a similar track record.
The fundamental problem with healthcare in the marketplace began when the tax code gave a gift to society. Post WWII’s economic boom created an atmosphere wherein well-intentioned-but-misguided legislators believed that social engineering through the tax code was a great idea. In particular, permitting an employer to take a deduction for providing health care to employees, yet exempting the employee from income tax for the receipt of health care was a great social innovation. Right? Well, the marketplace consequences decades later have produced a non-competitive health insurance and pharmaceutical marketplace. Example, Lasik. In its early years, LASIK was not covered by ordinary health insurance. LASIK providers had to compete for customers. Techniques improved and costs came down. As a result, over time the costs of LASIK have decreased many fold. Hospital services have not seen the same competition nor any cost reductions.
Get government out all at once or incrementally?
All at once? Let’s first go back in time to the 1950s during the initiation of such tax subsidies for health insurance, and then let’s go to 1986 and the Tax Reform Act of 1986 wherein President Reagan made this liberal, social tax subsidy complete. Once back in time, let’s vote against against President Reagan and IRC 106 which excludes from an employee’s income employer-provided accident and health plans, and corresponding IRC 162 granting a deduction to employers.
Incrementally? ACA is an effort to get government out of health care incrementally; however, to do so, government is going to get involved in it more than ever. Hmmmmmmmm. However, like most government efforts to cure a problem that it caused itself, it is likely to result in unforeseen consequences, and may turn into its own disaster.
Proof of disaster already shows its face by the secondary cause of government shutdown. Well, maybe that is govt as usual rather than government as leader.
CHART
US Debt since 1976
See:
http://www.skymachines.com/US-National-Debt-Per-Capita-Percent-of-GDP-and-by-Presidental-Term.htm
| Welcome to www.PresidentialDebt.org | |||||||||||
| Home of unbiased data on the national debt! | |||||||||||
| “Interest expense & US national debt by president, year, as % of GDP, per capita & % of per capita income” | |||||||||||
| Updated: Jan 11, 2013 | |||||||||||
| US National Debt & Interest Expense by Presidential Term, Percentage of GDP | |||||||||||
| National Debt, Total | Gross Domestic Product | Interest Expense | |||||||||
| Year | % Change | Debt | Total(6) | As % of GDP | |||||||
| Ending | President | Current $ (1) | Growth Rate, YoY | During Presidency | Avg. Annual | Current $ (2) | as % of | (As of Sept. 30) | |||
| 12/31/1976 | FORD | $653,544,000,000 | $1,825,300,000,000 | 35.8% | |||||||
| 12/31/1977 | CARTER | $718,943,000,000 | 10.0% | $2,030,900,000,000 | 35.4% | ||||||
| 12/31/1978 | CARTER | $789,207,000,000 | 9.8% | $2,294,700,000,000 | 34.4% | ||||||
| 12/31/1979 | CARTER | $845,116,000,000 | 7.1% | $2,563,300,000,000 | 33.0% | ||||||
| 12/31/1980 | CARTER | $930,210,000,000 | 10.1% | 42.3% | 9.2% | $2,789,500,000,000 | 33.3% | ||||
| 12/31/1981 | REAGAN | $1,028,729,000,000 | 10.6% | $3,128,400,000,000 | 32.9% | ||||||
| 12/31/1982 | REAGAN | $1,197,073,000,000 | 16.4% | $3,255,000,000,000 | 36.8% | ||||||
| 12/31/1983 | REAGAN | $1,410,702,000,000 | 17.8% | $3,536,700,000,000 | 39.9% | ||||||
| 12/31/1984 | REAGAN | $1,662,966,000,000 | 17.9% | $3,933,200,000,000 | 42.3% | ||||||
| 12/31/1985 | REAGAN | $1,945,912,000,000 | 17.0% | $4,220,300,000,000 | 46.1% | ||||||
| 12/31/1986 | REAGAN | $2,214,835,000,000 | 13.8% | $4,462,800,000,000 | 49.6% | ||||||
| 12/31/1987 | REAGAN | $2,431,715,000,000 | 9.8% | $4,739,500,000,000 | 51.3% | ||||||
| 12/31/1988 | REAGAN | $2,684,392,000,000 | 10.4% | 188.6% | 14.2% | $5,103,800,000,000 | 52.6% | $214,145,028,848 | 4.2% | ||
| 12/31/1989 | BUSH | $2,952,994,000,000 | 10.0% | $5,484,400,000,000 | 53.8% | $240,863,231,536 | 4.4% | ||||
| 12/31/1990 | BUSH | $3,364,820,000,000 | 13.9% | $5,803,100,000,000 | 58.0% | $264,852,544,616 | 4.6% | ||||
| 12/31/1991 | BUSH | $3,801,800,000,000 | 13.0% | $5,995,900,000,000 | 63.4% | $286,021,921,181 | 4.8% | ||||
| 12/31/1992 | BUSH | $4,177,009,000,000 | 9.9% | 55.6% | 11.7% | $6,337,700,000,000 | 65.9% | $292,361,073,071 | 4.6% | ||
| 12/31/1993 | CLINTON | $4,535,687,054,406 | 8.6% | $6,657,400,000,000 | 68.1% | $292,502,219,484 | 4.4% | ||||
| 12/31/1994 | CLINTON | $4,800,149,946,143 | 5.8% | $7,072,200,000,000 | 67.9% | $296,277,764,246 | 4.2% | ||||
| 12/31/1995 | CLINTON | $4,988,664,979,014 | 3.9% | $7,397,700,000,000 | 67.4% | $332,413,555,031 | 4.5% | ||||
| 12/31/1996 | CLINTON | $5,323,171,750,783 | 6.7% | $7,816,900,000,000 | 68.1% | $343,955,076,695 | 4.4% | ||||
| 12/31/1997 | CLINTON | $5,502,388,012,375 | 3.4% | $8,304,300,000,000 | 66.3% | $355,795,834,215 | 4.3% | ||||
| 12/31/1998 | CLINTON | $5,614,217,021,195 | 2.0% | $8,747,000,000,000 | 64.2% | $363,823,722,920 | 4.2% | ||||
| 12/31/1999 | CLINTON | $5,776,091,314,225 | 2.9% | $9,268,400,000,000 | 62.3% | $353,511,471,723 | 3.8% | ||||
| 12/31/2000 | CLINTON | $5,662,216,013,697 | -2.0% | 35.6% | 3.9% | $9,817,000,000,000 | 57.7% | $361,997,734,302 | 3.7% | ||
| 12/31/2001 | BUSH | $5,943,438,563,436 | 5.0% | $10,286,200,000,000 | 57.8% | $359,507,635,242 | 3.5% | ||||
| 12/31/2002 | BUSH | $6,405,707,456,847 | 7.8% | $10,642,300,000,000 | 60.2% | $332,536,958,599 | 3.1% | ||||
| 12/31/2003 | BUSH | $7,001,312,247,818 | 9.3% | $11,142,100,000,000 | 62.8% | $318,148,529,152 | 2.9% | ||||
| 12/31/2004 | BUSH | $7,596,165,867,424 | 8.5% | $11,867,800,000,000 | 64.0% | $321,566,323,971 | 2.7% | ||||
| 12/30/2005 | BUSH | $8,170,424,541,313 | 7.6% | $12,638,400,000,000 | 64.6% | $352,350,252,508 | 2.8% | ||||
| 12/29/2006 | BUSH | $8,680,224,380,086 | 6.2% | $13,398,900,000,000 | 64.8% | $405,872,109,316 | 3.0% | ||||
| 12/28/2007 | BUSH | $9,229,172,659,218 | 6.3% | $14,077,600,000,000 | 65.6% | $429,977,998,108 | 3.1% | ||||
| 12/31/2008 | BUSH | $10,699,804,864,612 | 15.9% | 89.0% | 8.3% | $14,441,400,000,000 | 74.1% | $451,154,049,951 | 3.1% | ||
| 12/31/2009 | OBAMA | $12,311,349,677,512 | 15.1% | $14,256,300,000,000 | 86.4% | $383,071,060,815 | 2.7% | ||||
| 12/31/2010 | OBAMA | $14,025,215,218,709 | 13.9% | $14,745,100,000,000 | 95.1% | $413,954,825,362 | 2.8% | ||||
| 12/31/2011 | OBAMA | $15,125,898,976,397 | 7.8% | $15,321,000,000,000 | 98.7% | $454,393,280,417 | 3.0% | ||||
| 12/31/2012 | OBAMA | $16,432,730,050,569 | 8.6% | 53.6% | 11.3% | $15,811,000,000,000 | 103.9% | <1st time: Exceeds 100% of GDP | |||
| Red text: Trend is worsening. Green text: Trend is improving | |||||||||||
| Table, formatting, page © 2005-2012 PresidentialDebt.org. All rights reserved. | |||||||||||
| LINKS TO THIS PAGE SHOULD BE TO www.PresidentialDebt.org. (Request permission before using/linking: info@presidentialdebt.org) | |||||||||||
| US National Debt by Presidential Term, per Capita | |||||||||||
| National Debt | National Debt, per Capita | ||||||||||
| Year | Total | Est | Debt, | % Change | Personal Disp. Income | per Capita Income | |||||
| Ending | President | Current $ (1) | Population(3) | per Capita | YoY | During Presidency | Avg. Annual | Current $ (4) | Debt as % of | Current $(5) | Debt as % of |
| 12/31/1976 | FORD | $653,544,000,000 | 218,035,164 | $2,997 | $5,972 | 50% | $5,271 | 57% | |||
| 12/31/1977 | CARTER | $718,943,000,000 | 220,239,425 | $3,264 | 8.9% | $6,517 | 50% | $5,785 | 56% | ||
| 12/31/1978 | CARTER | $789,207,000,000 | 222,584,545 | $3,546 | 8.6% | $7,224 | 49% | $6,455 | 55% | ||
| 12/31/1979 | CARTER | $845,116,000,000 | 225,055,487 | $3,755 | 5.9% | $7,967 | 47% | $7,168 | 52% | ||
| 12/31/1980 | CARTER | $930,210,000,000 | 227,224,681 | $4,094 | 9.0% | 36.6% | 8.1% | $8,822 | 46% | $7,787 | 53% |
| 12/31/1981 | REAGAN | $1,028,729,000,000 | 229,465,714 | $4,483 | 9.5% | $9,765 | 46% | $8,476 | 53% | ||
| 12/31/1982 | REAGAN | $1,197,073,000,000 | 231,664,458 | $5,167 | 15.3% | $10,426 | 50% | $8,980 | 58% | ||
| 12/31/1983 | REAGAN | $1,410,702,000,000 | 233,791,994 | $6,034 | 16.8% | $11,131 | 54% | $9,494 | 64% | ||
| 12/31/1984 | REAGAN | $1,662,966,000,000 | 235,824,902 | $7,052 | 16.9% | $12,319 | 57% | $10,328 | 68% | ||
| 12/31/1985 | REAGAN | $1,945,912,000,000 | 237,923,795 | $8,179 | 16.0% | $13,037 | 63% | $11,013 | 74% | ||
| 12/31/1986 | REAGAN | $2,214,835,000,000 | 240,132,887 | $9,223 | 12.8% | $13,649 | 68% | $11,670 | 79% | ||
| 12/31/1987 | REAGAN | $2,431,715,000,000 | 242,288,918 | $10,036 | 8.8% | $14,241 | 70% | $12,391 | 81% | ||
| 12/31/1988 | REAGAN | $2,684,392,000,000 | 244,498,982 | $10,979 | 9.4% | 168.2% | 13.1% | $15,297 | 72% | $13,123 | 84% |
| 12/31/1989 | BUSH | $2,952,994,000,000 | 246,819,230 | $11,964 | 9.0% | $16,257 | 74% | $14,056 | 85% | ||
| 12/31/1990 | BUSH | $3,364,820,000,000 | 249,464,396 | $13,488 | 12.7% | $17,131 | 79% | $14,387 | 94% | ||
| 12/31/1991 | BUSH | $3,801,800,000,000 | 252,153,092 | $15,077 | 11.8% | $17,609 | 86% | $14,617 | 103% | ||
| 12/31/1992 | BUSH | $4,177,009,000,000 | 255,029,699 | $16,379 | 8.6% | 49.2% | 10.5% | $18,494 | 89% | $14,847 | 110% |
| 12/31/1993 | CLINTON | $4,535,687,054,406 | 257,782,608 | $17,595 | 7.4% | $18,794 | 94% | $15,777 | 112% | ||
| 12/31/1994 | CLINTON | $4,800,149,946,143 | 260,327,021 | $18,439 | 4.8% | $19,255 | 96% | $16,555 | 111% | ||
| 12/31/1995 | CLINTON | $4,988,664,979,014 | 262,803,276 | $18,983 | 2.9% | $20,114 | 94% | $17,227 | 110% | ||
| 12/31/1996 | CLINTON | $5,323,171,750,783 | 265,228,572 | $20,070 | 5.7% | $20,682 | 97% | $18,136 | 111% | ||
| 12/31/1997 | CLINTON | $5,502,388,012,375 | 267,783,607 | $20,548 | 2.4% | $21,683 | 95% | $19,241 | 107% | ||
| 12/31/1998 | CLINTON | $5,614,217,021,195 | 270,248,003 | $20,774 | 1.1% | $23,870 | 87% | $20,120 | 103% | ||
| 12/31/1999 | CLINTON | $5,776,091,314,225 | 272,690,813 | $21,182 | 2.0% | $24,823 | 85% | $21,239 | 100% | ||
| 12/31/2000 | CLINTON | $5,662,216,013,697 | 282,171,957 | $20,067 | -5.3% | 22.5% | 2.6% | $26,282 | 76% | $22,346 | 90% |
| 12/31/2001 | BUSH | $5,943,438,563,436 | 285,081,556 | $20,848 | 3.9% | $26,827 | 78% | $22,851 | 91% | ||
| 12/31/2002 | BUSH | $6,405,707,456,847 | 287,803,914 | $22,257 | 6.8% | $27,957 | 80% | $22,794 | 98% | ||
| 12/31/2003 | BUSH | $7,001,312,247,818 | 290,326,418 | $24,115 | 8.3% | $29,330 | 82% | $23,276 | 104% | ||
| 12/31/2004 | BUSH | $7,596,165,867,424 | 293,045,739 | $25,921 | 7.5% | $31,001 | 84% | $23,857 | 109% | ||
| 12/30/2005 | BUSH | $8,170,424,541,313 | 295,753,151 | $27,626 | 6.6% | $31,909 | 87% | $25,036 | 110% | ||
| 12/28/2006 | BUSH | $8,680,224,380,086 | 298,593,212 | $29,070 | 5.2% | $33,680 | 86% | $26,352 | 110% | ||
| 12/31/2007 | BUSH | $9,229,172,659,218 | 301,579,895 | $30,603 | 5.3% | $34,893 | 88% | $26,804 | 114% | ||
| 12/31/2008 | BUSH | $10,699,804,864,612 | 304,374,846 | $35,153 | 14.9% | 75.2% | 7.3% | $35,304 | 100% | $26,964 | 130% |
| 12/31/2009 | OBAMA | $12,311,349,677,512 | 307,006,550 | $40,101 | 14.1% | $35,044 | 114% | $26,530 | 151% | ||
| 12/31/2010 | OBAMA | $14,025,215,218,709 | 310,516,821 | $45,167 | 12.6% | $36,436 | 124% | $26,487 | 171% | ||
| 12/31/2011 | OBAMA | $15,125,898,976,397 | 312,788,655 | $48,358 | 7.1% | $36,983 | 131% | $26,487 | 183% | ||
| 12/31/2012 | OBAMA | $16,432,730,050,569 | 315,090,185 | $52,152 | 7.8% | 48.4% | 10.4% | $37,905 | 138% | $27,554 | 189% |
| LINKS TO THIS PAGE SHOULD BE TO www.PresidentialDebt.org. (Request permission before using/linking: info@presidentialdebt.org) | |||||||||||
| Red text: Trend is worsening. Green text: Trend is improving | |||||||||||
| (1) | http://www.treasurydirect.gov/NP/BPDLogin?application=np | (4) | http://www.bea.gov/national/nipaweb/SelectTable.asp?Selected=Y#S2 | ||||||||
| (2) | http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm | (5) | http://www.census.gov/hhes/www/income/data/historical/people/index.html | ||||||||
| (3) | http://www.census.gov/main/www/popclock.html | (6) | http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm | ||||||||
| Table, formatting, page © 2005-2012 PresidentialDebt.org. Rights reserved. | |||||||||||
This spreadsheet shows that increased spending has no correlation to political party – all of our presidents and representatives and senators spend too much!
Potential failures are:
Exchanges: price fixing instead of competition
Premiums go up instead of down
Coverage goes down
Successes:
Prevent people w/o health insurance from using the emergency room for free medical services. E.g.: individual cannot be admitted w/o health insurance card or doctor’s approval.