Barack Obama thinks the federal government will go bankrupt without health care reform

Yes, you read the title of the post correctly. Barack Obama believes that without health care reform, the federal government will go bankrupt. Here is an excerpt:

The president said that the costs of Medicare and Medicaid are on an “unsustainable” trajectory and if there is no action taken to bring them down, “the federal government will go bankrupt.”

I’m not an economist, but that seems like a bit of an exagerration to me. The President’s comments about Medicare and Medicaid also make me wonder why we would want to expand Medicare enrollment to those ages 55 to 64. If we already have a massive federal program facing serious financial challenges, then why would we want to expand it? Wouldn’t we just be making a bigger problem for ourselves?

Of course, no interview would be complete without some socialist scare tactics. Take a look at this comment:

“If we don’t pass it, here’s the guarantee….your premiums will go up, your employers are going to load up more costs on you,” he said. “Potentially they’re going to drop your coverage, because they just can’t afford an increase of 25 percent, 30 percent in terms of the costs of providing health care to employees each and every year. “

If employers can’t afford health insurance, they will dump the costs on employees. It will become more expensive, and more and more individuals will drop their insurance. If this happens, insurance companies would be harmed financially. I’m not sure if Barack Obama realizes this, but if insurance companies don’t have customers, they’ll go out of business. Premiums cannot keep rising indefinitely. There’s a certain point where customers will just cancel their coverage. Barack Obama seems to forget this. Maybe he would have a better handle on this concept if he stopped hanging out with Marxists.

I’ve always believed that one of the biggest reasons for increases in health care expenses is due to our dettachment from direct financial responsibility. Those with health insurance pay for their premiums, but after that, health care costs cease to become a concern. Patients don’t tend to ask how much procedures cost, and providers have no incentive to compete with each other for prices. Because of this, they will charge whatever they can get away with. Without consumer demand keeping prices in check, they keep on escalating. This isn’t the sole reason for escalating prices, but it’s certainly a contributor.

This would be a good issue to raise, but I’ve never heard it mentioned. Maybe it’s because it’s too capitalistic in nature, and doesn’t fit in with the plans of some Congressmen to gradually introduce a single-payer system. At any rate, the answer won’t be found in a slow march toward socialism.