'Obamacare' and the Debt

Republicans are wrong. “Obamacare” has absolutely nothing to do with the sweet European socialism. It is a limited version of the Swiss health care system, which is terribly conservative and agrees on a basic principle of classic liberalism: People must be responsible for their lives. Every man for himself.

The Swiss have one of the best health care systems in the world. It is efficient, fast and very professional. From birth to death, every single person living in the country — even the undocumented — has to subscribe to a medical insurance plan offered by one of the 93 private companies competing in price and quality. The federal government regulates the benefits of these insurance plans and the cantons distribute them. If someone is unable to pay for insurance, then the canton provides the money for the expenditure.

The Swiss health care system is not cheap. It consumes approximately 12 percent of the national gross domestic product — somewhat higher compared to the average of OECD countries — whereas in the United States, this figure is almost 18 percent, with medications being the most expensive on the planet. Besides, before “Obamacare” was enacted, it was an incredible shame that people suffering from a chronic disease were denied medical insurance or urged to pay a fortune for the premium. This is something unworthy of the foremost economy on the planet and the necessity of social solidarity.

In any case, “Obamacare” is very similar to the Swiss system, but more limited. For instance, a big mistake is that the undocumented cannot be granted medical insurance. This implies that whenever they get sick and must be looked after in public hospitals — something absolutely justifiable — society as a whole ends up taking on the expense. By harassing them and being detrimental to the undocumented, lawmakers are also harassing and being detrimental to both citizens and legal residents.

This is very similar to what happens when the undocumented are refused or find unnecessary obstacles to a path to citizenship. All reliable surveys show that people with full citizenship create more wealth and savings than those who suffer from the uncertainty of having a precarious and limited residence. Being “tough” to undocumented immigrants is the quickest way to turn a blind eye to the situation.

Democrats are wrong too. Burdening the country with debt is a stupidity of Obama’s government. The U.S. national debt is around $17 trillion. Every single day, that debt increases by $1.8 trillion. It has already exceeded the national gross domestic product of $16 trillion. I suggest that the reader have a look at the U.S. government debt website to check the moving public finance chart. If he is not scared or depressed, it is because he suffers from a pathological indifference to horror or has undergone a secret, radical lobotomy.

Nowadays, interest rates are at their lowest in history. In spite of this, out of every dollar that is being paid as tax to the federal government, 25 cents go to public debt holders. If interests were to rise up to 5 percent — the historic average — half of each tax dollar would go toward paying interest. Since that situation is something unthinkable, given the commitments to Social Security, Medicare and defense — the budget’s three hungry lions — taxes should be increased, and the whole productive system would reduce its ability to create wealth.

Nonetheless, politicians are not mad, nor they are more irresponsible than cooks or car salesmen. Politicians, as Spanish deputy Miguel Ángel Cortés usually says, are only “ferocious and hungry animals feeding on votes.” These strange creatures meet the short-term interests of their voters. That Keynesian stupidity, saying that “in the long run, we are all dead,” is not any consolation. If this madness is not stopped, we will all be ruined in the long run — something similar to death.