Sunday, January 3, 2010

Speculation: Health Care and the Economy

I wonder if the health care mandates are going to crush any recovery in 2014, the way that too-early budget-balancing did in 1937. Perhaps 10-30% of the money that people will be mandated to spend on insurance is going to go into the financial system, where it is unlikely to be spent well. People in the $20,000-$50,000 income range, who do a lot of spending out of necessity, are going to be pinched. I can't see how pumping more money into the already corrupt financial industry is going to lead to a positive outcome. A big bubble and a widening of the income gap is what I'm thinking, now, and a further whittling down of the real economy.

Be nice to see some analysis on this point from a real economist, or even the CBO.

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