It looks like President Obama and the signature achievement of his Presidency, i.e. the Affordable Care Act which is commonly known as “Obamacare”, is experiencing some tough sledding. There’s a good article in the National Journal that sums up what is really happening now. In a nutshell, the wealth redistribution effects of ObamaCare are now being realized. And it is very uncertain that political support for it can be maintained now that more and more ordinary citizens are feeling the effects of these re-distributions.
These effects may get even worse in 2014 when the employer mandates fully kick in and a lot of people lose their employer health coverage (which is already starting, as some companies are dropping coverage of part-timers). The wealth redistribution from ObamaCare is generally from rich to poor, young to old, health to sick – and this has been allowable, up to a point, in US politics (Social Security and Medicare both do this).
HOWEVER – at some point, the political backlash from the rich (and the somewhat better off), the young and the healthy can get very strong. The primary example being cited is the failure of the 1988 Catastrophic Care Medicare expansion » continue reading …