EDITOR OF REDSTATE
Another problem with the Democrats’ Healthcare Legislation
There is another problem with the Democrats’ healthcare legislation that hasn’t been talked about much. It makes a heck of a tradeoff.
In exchange for universal healthcare under a government run plan, Donald Luskin points out an independent analysi that says we’ll see wage stagnation.
That’s right — in exchange for healthcare, don’t expect to ever get a pay raise.
If we expanded health insurance coverage but our current health cost inflation rate continued unabated, the higher overall costs would result in falling wages at the bottom of the earnings spectrum and very slow wage growth on up the earnings distribution. These dismal wage outcomes would persist over at least the next couple of decades, possibly longer.
In other words, only the rich will benefit. The poor and middle class will see their earning power reduced, their disposal income cut, and their potential to rise up from the lower and middle classes cut off.
All of this will be thanks to Obamacare.