Ain't Economics Great?
It's so easy to understand why they can't pay the bills too. They spend more than they make. And the result is compounded once your solution is to raise taxes. Raising taxes causes more people and businesses to leave, thus producing still less revenue. And spending never comes down.
There is absolutely nothing different in this scenario between you, me, the State of Illinois or the United States of America. Eventually, such a system will come crashing down.
Well, there are a few differences, such as the fact that the U.S. can print its own money while you, I and Illinois can't. But in the long run, the ability to do so only makes the crash that much more severe because the currency is that much more debased.
In the health care context, Illinois doesn't have the money to pay vendors administering the State's Medicaid system. Because those vendors can't print their own money, they can't pay their employees or their own bills, and many of them will go under. See the cascade effect?
Larger still, every single version of ObamaCare includes a provision that would open Medicaid to huge numbers of previously ineligible individuals. With that comes the added cost of providing services to those people. Who picks up the cost? First the States, then you.
ObamaCare will bankrupt what is left of the United States. It may happen first in the form of States running completely out of money. How would a State like Illinois, already in debt up to its eyeballs, absorb the kind of astronomical cost that ObamaCare would impose? There's no way other than to raise taxes or borrow. Either way, bankruptcy is the inevitable outcome once revenue dries up.
Keep this in mind when you hear people talking about health care costs and "deficit neutral" nonsense.
Russ
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