By Matt Temperley, Candidate for U.S Congress MA-08
Matt Temperley is a Two-time Combat Veteran and a currently holds the rank of 1st Lieutenant in the Army National Guard.
If the Affordable Care Act was bad for businesses before its implementation, it will be even worse after it comes into effect. Since the health care law was mainly put together by interest groups, the end result shows a total disregard for basic economic theory. Much of its cost is put on the shoulders of the private sector, and especially on the ones of small businesses who lack the resources to cope with it. The misconception that an individual mandate will bring down the costs of health care is the biggest flaw in the Obama's health care initiative.
When President Obama took office back in 2008, the economy was headed into a recession. Instead of helping small business by providing incentives and lowering taxes so they can stay afloat, the Obama Administration decided to make it even more difficult for them by bringing a costly health care law. As a result, business refrained themselves from investing and hiring more people as a way to absorb the cost of Obamacare.
Contrary to the notion that an individual mandate will bring health care costs down, forcing people to be insured will actually raise them. The health insurance industry works similarly as the auto insurance. Both sectors would lose more money, and increase their prices, when more services have to be provided by them. For instance, if there are more car accidents, and more cars need to be repaired, premiums will go up. Likewise, if patients demand more health care services, the premiums will go up as well. A massive health care coverage will induce patients to demand more medical services that are unnecessary. It is for this very reason that Obamacare will in fact increase the overall costs of health care.
The reason why the Affordable Care Act will not work is not because it was brought forward by Obama, it will simply not work because it was put together by interest groups who absolutely ignored economic theory, and most importantly, because it puts most of its cost on the shoulders of small business. Therefore, Obamacare is the antithesis of economic growth.