The value of health insurance is counted as income in this graph.
Source: Brookings Institution.
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So the middle class suffers the loss of income due to ObamaCare.
In a previous post in this blog there was a statement made by Ezekiel Emmanuel, an advisor to Obama in the establishment of Obamacare. When confronted with the fact that most people would be worse off due to Obamacare, he responded that those who are being negatively affected by the program are individuals who were benefited in the past. He claimed that it was time for them to “suffer” while those who were worse of in the past enjoyed from their newly acquired benefits. He stated that there was no problem in making the majorities suffer if few will benefit. This graph proves that most people are worse off, and it is intriguing that the program was designed to do this, as Emmanuel stated.
It is unsettling that the program was designed to do this. It shows that everyone is worse off except for the low income class.
If we add the ten changes in average income we will find out that the number is positive. This can be taken as even if some suffer, as a whole average income increased. This is positive to the economy, closing the gap between the rich and the poor. Obamacare is not that bad then. The only problem is that the decline of those in the 3rd and 4th tenths is greater than those in the top. So, Obamacare is making the poor somewhat richer, and the lower middle class poorer. We will end up with a very poor lower middle class.
It will just merge the lower and middle classes closer and closer together. Thus increasing the income inequality as wider gaps emerge between the upper class and lower-middle class.
“He claimed that it was time for them to “suffer” while those who were worse of in the past enjoyed from their newly acquired benefits.”
Typical progressive mindset.
Well this was the point of Obamacare, to improve the lower class. It is no surprise that those who receive the benefits will be positively affected the most.
In a sense, yes, But as Bernardo G. points out, it is at the expense of the ones who previously benefitted to “suffer.”
I don’t know how some people believe that Obamacare is a great program. If the majority is worse off how can we be all be better off? Don’t count only the fact that the average income is declining; many will quit their jobs as a result of this legislation. The economy and all of us will suffer from the ambition of the President and his desire to leave a legacy.
Well just like Krugman stated in an earlier blog entry, “people decide to work less, we congratulate them.” The government doesn’t seem to mind that people will work less and the average income will decline because their policies.
“Those who gain subsidized insurance will see bigger percentage gains in their income.”
Which proves why the bottom or lower end of the distribution benefits the most. They have the most to gain from ObamaCare.
This is one of the best arguments to seek a way to “Repeal and Replace” Obamacare. We cannot keep this nonsense going on. I would accept Obamacare, even if it meant that on average my income would drop, if the program was working. But, I will not accept something that is making me worse off, that is making the majority of Americans worse off, a program that is flawed and doomed to fail. I cannot comprehend why some still defend this piece of legislation.
It is impossible to make it clearer. ACA is harming America. The amount by which income is going to increase is minimal compared to what the country is spending to provide it. It is a clear net loss for the United States.
No one wants to be the “I told you so”. But with the Affordable Care Act there will be a lot of “I told you so” when this program inevitably fails.
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