California’s Problems Foreshadow Life Under Obamacare

Kevin Hassett at Bloomberg has an interesting article up describing the financial mess in California and how the state’s issuance of IOUs will kill “Obamanomics.” The article says that California politicians offered too many easy government solutions to the masses in order to get elected and now they cannot pay for those easy solutions.

The state is sending out IOUs to those owed money (with the exception of certain protected groups). Imagine what would happen if you sent the state an IOU for your taxes…

Hassett says the debacle in California will certainly sink Obama’s health care ambitions:

The California morass has Democrats in Washington trembling. The reason is simple. If Obama’s health-care plan passes, then we may well end up paying for it with federal slips of paper worth less than California’s. Obama has bet everything on passing health care this year. The publicity surrounding the California debt fiasco almost assures his resounding defeat.

As the article points out, California got into this mess over time by spending too much. The amount California spent is a drop in the bucket compared to what Obama is spending.

Health care, Social Security, Medicare, tax refunds (if anyone ever gets one with increased taxes), and all kinds of other things will come with IOUs. Don’t worry granny, we’ll get you your check as soon as we can. Hope you stocked up on cat food.

The nearly one trillion dollars spent on the stimulus is money we had to borrow and we got no stimulation from the expense. Some will argue it means we need to spend more. That is the kind of moronic thinking that gave us the Great Depression.

Obama care will cost more than the stimulus and we don’t have money to pay for it.

Instead of IOUs for money (which many will undoubtedly get) we could be seeing IOUs for CAT scans, cancer treatment, flu shots or any number of things. We might have to start waiting 6 months for an MRI like the do in Canada (unless you are an animal, then you get it immediately).

California is a small version of the US and what is happening there will certainly happen at the federal level. Wouldn’t it be nice if it were that state that put an end to Obama care?

We have no money now and are still digging the hole. By the time Obama is done we will be through to the other side of the world.

Big Dog

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One Response to “California’s Problems Foreshadow Life Under Obamacare”

  1. Blake says:

    IF this bill goes through, it will be the most un- funded bill ever passed. We will be IOU-ing Doctors and hospitals at a rate where doctors will have to flee to other countries to actually make money.