Monday, February 28, 2011

ObamaCare and the Deficit

At, Avik Roy explains "Why Repealing Obamacare Will Reduce the Deficit".

His key points include:
1. CBO does not take into account PPACA’s impact on discretionary spending
2. PPACA includes an unrelated takeover of student loans, which will lead to more loan defaults
3. The CLASS Act generates some near-term revenue at the expense of massive long-term expenditures
4. CBO estimates are highly sensitive to errors in the projected growth of government subsidies
5. PPACA incentivizes employers to dump their employees onto the subsidized exchange, something CBO does not anticipate
(Read the full text of "Why Repealing Obamacare Will Reduce the Deficit".)

These sorts of economic arguments are excellent adjuncts to arguments on the broader philosophical and moral arguments against ObamaCare.