Saturday, June 11, 2011

Can't compete on an equal footing? There's a waiver for that.

When Obamacare was originally passed, its critics declared it a job killing bill.  There were accusations that the incentives were set up in such a way to destroy private insurance and force employers to dump their employees onto the government rolls.  It was also predicted that smaller companies might even give up their plans entirely because they'd be unable to even afford the lawyers to go through the several thousand page bill and tell them how to proceed.  The administration, going against the will of the American people demonstrated in town halls and virtually every major poll, passed the bill and implied that the only reason anyone could be against it was either greed or racism and likely both.

As the bills provisions slowly kick in, all the critics' predictions seem to be coming true.  Thirty percent of businesses are expected to drop health coverage because of Obamacare.   There are also at least five other perverse incentives for businesses in the bill, including relying more heavily on part-time workers and artificially spiking premiums to qualify for subsidies.  More generally by making each employee more expensive, Obamacare is sure to cause higher unemployment. 

Then came the waivers.  Never before had an administration passed such a sweeping bill and exempted their own supporters so promiscuously.  In the latest round of waivers, 20% went to businesses in Nancy Pelosi's district.   Many unions, including the SEIU who has donated tens of millions of dollars to Obama, have received waivers.  AARP strongly publicized in favor of Obamacare but then also received a waiver.   When pressed about what criteria go into making this decision, the administration has been mum.  Likely because waivers are not mentioned anywhere in the bill and the HHS does not have the authority to issue waivers. 

As a candidate who railed against crony capitalism in the form of Halliburton during the campaign, Obama seems pretty comfortable exempting his favored businesses from the extra costs he seeks to impose on all others.  His cavalier attitude towards the issue as the number of waivers surpass 1200 speaks to the fact that the media will not challenge him on this issue.  Reason, as usual, is a major exception wondering if his waiver attitude might have anything to do with his war policies as well.


This unholy and naked alliance of business and government against other business is exactly the kind of situation Ayn Ran was trying to warn us about over 50 years ago.  Government can play favorites because it writes the laws, no one dares complain because government writes the laws.  Obama hasn't started anything new here, just expanded it to obscene proportions under the eye of a complacent media.

Although Obamacare is continuing to wind its way through the court system, the best way to fight it might be to simply gain control of the White House and repeal all waivers.  When everyone feels the pain together, it will be more palatable to pursue a complete repeal.  Liberals have long said that nationalized healthcare is their Holy Grail, if so we should insist that they live under it just like everyone else.

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