Further Reflections on Today’s Supreme Court ObamaCare Decision
President Obama won big today. The basis of the Court’s
decision is irrelevant for political purposes. The President won.
President Obama admired President Reagan as a transformative
President. He too wants to be a transformative president. He succeeded today,
placing 1/6 of the nation’s economy under the government’s thumb, scrapping
federalism, enlarging the powers of the federal government with states and the
people being the big losers, and growing the culture of dependency on the
federal government. The almost 4 centuries of American personal freedom are now subordinated
to the government.
Having become a transformative president, President Obama
should now step aside. If he wins reelection, the next four years will be hell
for the President. The 21 tax increases in ObamaCare accompanied by the end of
the Bush tax cuts will result in tax increases so high as to possibly send this
fragile economy into a depression. Inflation is another risk as the Fed losses
the ability to keep interest rates at 0. The market will respond.
If he wins reelection, and the Republicans control both
houses of Congress, then he might as well be spending 365 days a year on the
golf course.
It is a big loss for the American people and personal
freedom.
It is also a major loss for Chief Justice Roberts and the
Supreme Court. The majority of five not only rewrote the statute, but more
significantly the Constitution. The Chief Justice may have been too clever by
half. His opinion limited the reach of the Commerce Clause, the Necessary and
Proper Clause and the Spending Clause. Such holdings will not hold up if a
reelected President Obama replaces 4-5 Justices over the next 4 years.
The health insurers and Pharma believe they won today
because of the deals cut. They’re wrong. In the long run, perhaps 5 years, the
costs will be so great Congress will have no financial choice but to stick it
to the insurers and Pharma because that is where the money is.
The "Affordable Health Care Act" is an oxymoron.
Do you know who the largest employer is in England?
It’s the National Health Service with 1.7 million employees
in England, Wales, Scotland, and Northern Ireland. It’s the fifth largest
employer in the world, trailing only the Pentagon, the Chinese military,
WalMart and McDonald’s. By way of comparison, WalMart employs 2.1 million
worldwide, including 200,000 in England.
That is the future.
What about the present?
The Republicans and Governor Romney promise to repeal
ObamaCare. Perhaps, if they hold the House, win the Presidency, and reap 60
seats in the Senate to survive a filibuster. The first two are possible, but
the election of 13 additional Republican senators would require a landslide of
historic proportions.
However, Chief Justice Roberts’ opinion lays out a roadmap.
The Mandate cannot stand independently, and is not supported by the Commerce or
Necessary and Proper Clauses. It only exists as an alternative to the tax.
If the mandated taxes on individuals and employers are
repealed, then the Mandate falls. A Republican Congress can manipulate the
votes on taxes, so as to require only a simple majority in the Senate. Thus,
the heart of ObamaCare can be carved out.
However, that would not repeal many of the other provisions,
including most of the 21 tax increases, mandated coverage, etc.
America lost today, but remember “It’s still the economy,
stupid.”
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