Politicians will tell you the Democratic victory for Obamacare was hard-fought and historic. Economists will tell you Obamacare is going to be expensive. All healthcare is expensive. Businessmen will tell you that Obamacare was stillborn and unworkable. Helicopter Bernanke says they will taper off with quantitative easing. No where else to go with that one.
Obama knows the economy is still fragile. He needs a new stimulus or something that looks like a stimulus. A lot of businesses are staring at significant new bills for Obamacare. Mid term elections coming up. Obama would prefer to develop coattails in 2014 and the all important 2016. Economy needs to improve because after six to seven years its his economy. Excuses have run out.
So you gamble with one of your political assets and create the charade of delay. Probably saved a bunch of jobs. Because a lot of companies were suddenly going to have less than 50 people. Large companies were going to cut costs which means lower salaries and fewer jobs.
If you’re a hockey fan, and perhaps Obama watches the storied Chicago Black Hawks, you ice the puck and hope to dig it out of the corners later. What he fails to realize is: “markets hate uncertainty.” This just creates uncertainty.
Watch the nuanced spin that it will help the economy. With a tsunami of increasing health costs there is a political liability that was not calculated properly. Advantage to global companies with off shore work forces or very small head counts.
In the meantime
- Don’t smoke.
- Don’t abuse drugs or alcohol.
- Walk 10,000 paces a day.
- Reduce intake of carbs, sugar and salt.
- Have sex as frequently as possible.
- Avoid investments which lose money. Too stressful.
George Gutowski writes from a caveat emptor perspective. Working hard on point six.