You Can’t Manage An Economy

WASHINGTON, DC – Big Labor, a leading backer of the Barack Obama administration and the Democrat party, is finally starting to learn that the government cannon manage an economy.  Their lesson?  ObamaCare’s 40% tax on “cadillac” health insurance plans.

Last week, just prior to the Labor Day holiday, the International Longshore and Warehouse Union (ILWU) announced that they would be ending their affiliation with the AFL-CIO over the union umbrella’s support of ObamaCare and the tax on “cadillac plans”.  Other labor unions are denouncing the law as they learn that their members will be adversely affected by ObamaCare.  The Democrat promise that all Americans could keep their existing plans if they wanted has rung hollow.

While more  employers across the country are cutting worker hours below the 30 hour “full time” threshold for ObamaCare, others are abandoning their traditional health plans in favor of high deductible Health Savings Account plans (HSA’s).  Ironically, it was the left that attacked these plans during the first decade of the 21st century.

HSA’s are cheaper, in part, because employees have greater control over their health care spending:

John Goodman, a longtime proponent, is sometimes called the father of health savings accounts. He explains that with such accounts "the employee controls a lot of the money, makes a lot of his own decisions."

He says that saves money because, as he puts it, "we’re always more careful when we’re spending our own money than when we’re spending someone else’s money."

Increased regulation and higher taxes distort the market for health care, which encompasses 17% of our nation’s economy.  Big Labor, and other traditional Democrat allies may finally be learning that Washington’s “Brain Trust” simply cannot manage such a large portion of the world’s largest economy.  Despite continual attack from government, the “invisible hand” of the free market always comes out on top.  Unfortunately, the distorting effects of government, labor unions, and corporatist business interests do impact the free market; yielding results that few proponents can anticipate.

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