Monday, October 7

US Deadlock puzzle

If anyone thought bizarre political outcomes are a feature of Australian politics spare a thought for the 800,000 workers now on unpaid leave at the mercy of a powerful tea party force within the Republican Party, shamelessly opposing funding for the universal health care entitlement called Obacare.

Although benefits under the scheme don’t begin until next year, enabling time to explore funding options, opponents to the scheme consider it so wasteful and an affront to liberty they feel impelled to make a stand now. Any talk of a levy or funding tax increase causes tea party die- hards to a point of apoplexy from a meltdown of the frontal lobes since they are elected on a platform the only good government is the one smaller than its predecessor.

But the reality is, once fully implemented, the amended scheme passed as law will already hold down spiraling heath care costs whilst reducing the deficit and increase productivity and jobs which mirror so called conservative values.

But on the ground insurance Agencies and websites were overwhelmed with new registrations, from an estimated 48 million uninsured Americans as the scheme gets underway. Paradoxically the early teething problems have been overshadowed by the publicity afforded to the scheme by the Republican funding rejection, unwittingly contributing to its success as millions seek to register.

One should not rule out a similar stalemate on the 17th October when the debt ceiling is reached, so investors need to brace themselves for dislocation to equity markets, should the unthinkable of a government debt default also become a possibility.

3 comments:

susan said...

There appears to be a deliberate attempt to create economic chaos by a Tea Party inspired coalition faction of Libertarians and Christian Fundamentalists within the Republican Party.

Lindsay Byrnes said...

Hi Susan,
The USA seems unable to accept outcomes that lead to fairer more ethical outcomes for everyone.
Health costs are set to escalate to 22% of GDP because of the proliferation of private funders which breeds inefficiencies and over servicing.
A broad based Medicare scheme, under government supervision is the answer, but would cause consternation, as you say to civil libertarians, not to mention a radical tea party.
Best wishes

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