Wednesday, March 24, 2010

Jay Cost shoots down the argument against repeal

The Democrats crammed a $2 trillion bill into a $1 trillion package by delaying the distribution of most benefits for four years, until 2014. This creates two major political vulnerabilities for ObamaCare.

The first is an imbalance between winners and losers through the next two elections. Harold Lasswell defined politics as who gets what, when, and how. By this metric, ObamaCare is bad politics for the foreseeable future. Like any major piece of legislation, this bill assigns winners and losers. The winners will be those who today are uninsured, but who will (eventually) acquire insurance. But there will not be a major reduction in the uninsured until 2014. So, the actual winners are going to be pretty few in number for some time.

Meanwhile, the losers begin to feel the effects immediately. Between now and the next presidential election, ObamaCare is going to pay out virtually zero dollars in benefits, but it will take billions out of Medicare. This is bad for seniors. They have an incentive to oppose portions of this bill (while supporting others, like the closing of the "Doughnut Hole," which Republicans will never repeal).

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