Politics

Warren’s Medicare for All Plan Counts Chickens, Kills Geese

Medicare for all progressive presidential election
Photo Credit: Senate Democrats, CC BY 2.0

Senator Elizabeth Warren, D-Massachusetts, has revealed how she anticipates financing Medicare for All (M4A). Summing up, her plan underestimates costs, overestimates revenues, and glosses over devastating effects on the U.S. economy.

Warren assumes M4A would add around $20 trillion to the federal budget over 10 years. My colleague, Chuck Blahous puts the number at around $33.4 trillion. The bipartisan Committee for a Responsible Federal Budget assumes $30 trillion. The left-of-center Urban Institute estimated that a similar program would raise federal expenditures by around $34 trillion.

Warren obtains her low estimate by assuming away costs that are unlikely to go anywhere. She assumes the federal government can force prescription drug prices to plunge by 70 percent (devastating to new drug development if implemented, but more likely impossible to implement). She assumes doctors and hospitals will accept massive income reductions and still provide their services. She assumes that, unlike the Department of Defense and other federal agencies, M4A will be a paragon of efficiency and bargaining prowess.

Outside of the ultra-rich and corporations, she infers, Americans will experience no tax increases. Former Obama adviser Stephen Rattner concludes that nearly 50 percent of Warren’s revenue sources are “classic gimmicks that people use when they can’t get the numbers to add up.”

Perhaps Warren’s most controversial proposal is a wealth tax of up to 6 percent on billionaires. Federal wealth taxes are probably unconstitutional, but that aside, they would be economically ruinous. Microsoft founder Bill Gates said: “I’ve paid over $10 billion in taxes. I’ve paid more than anyone in taxes. If I had to pay $20 billion, it’s fine. But when you say I should pay $100 billion, then I’m starting to do a little math over what I have left over.”

In response, Warren posted an online “calculator” to persuade Gates and his peers of the benign nature of this tax. It likely does the opposite. Gates would have to come up with more than $6 billion in cash every year forever. Aside from Disney’s Scrooge McDuck, billionaires don’t keep vast sums of cash lying around, so they would find themselves perpetually liquidating large chunks of their portfolios, permanently destabilizing asset markets.

Such ceaseless liquidation may not even be possible. Warren’s plan would tax unrealized capital gains. Imagine a cash-poor, idea-rich entrepreneur whose high-tech start-up soars to a $2 billion valuation before earning a cent. Somehow, she would have to scrounge up $240,000 in cash every year. And what if the start-up ultimately fails, obliterating her paper billions? Does the government then return the taxes on wealth that never really existed?

Warren’s wealth tax effectively commands entrepreneurs, “Count your chickens before they’re hatched, and pay us the anticipated proceeds today.”

Many innovators will have no choices other than to leave the country or cease innovating altogether. At the risk of a second poultry metaphor, this tax kills the geese laying golden eggs.

Asked what would become of the half million or so health insurance industry employees who would lose their jobs under her plan, Warren said, “So if you’ve had a chance to read the plan, you’ll see no one gets left behind. … Some of the people currently working in health insurance will work in other parts of insurance — in life insurance, in auto insurance, in car insurance, some will work for Medicaid.”

Presumably, she meant “Medicare for All,” since present-day Medicaid, Medicare and private insurance would all be abolished and replaced by an entirely new system. But more important, you can’t just brush away the massive employment dislocations in the health insurance industry with the bromide, “no one gets left behind.”

Health insurance has little in common with life insurance or auto insurance, other than the noun “insurance.” Warren might as well promise, “When we outlaw horse racing, some of the horse jockeys will find work as computer jockeys or disk jockeys.”

Even if health insurance skills were transferable to life or auto insurance, there’s absolutely no reason to think the life and auto insurance industries will suddenly need half a million new employees. It’s like firing half the auto manufacturing workers in America and assuring them, “I’m sure you’ll find something.”

In short, Warren’s document is more fantasy than plan.

From – Inside Sources – By Robert F. Graboyes

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Wayne D Peterkin

The lowballing of cost and the over estimating of revenues while ignoring the horrid economic impact on jobs is typically liberal. Warren is a far left proponent who advocates the government as the solution to every problem when the government is really the cause of most problems. As a dedicated leftist she should not be allowed within the DC city limits.

Phillip

Garbage in, garbage out. These socialists disguising themselves as patriots are intent on destroying the greatest economy the world has ever known.

J. FARLEY

WARRENS MEDICARE FOR ALL IS LITTLE MORE THAN A SHELL GAME THAT WILL END UP MEDICARE FOR NONE, INCLUDING US SENIORS . THE MORE GOVERNMENT GETS INVOLVED THE MORE FRAUD AND ABUSE WE WILL SEE .

R shoemaker

Even many DIMs point out that her plan is simply economically unfeasible. Meanwhile, our local
NBC affiliate interrupted its normal program to give live, full coverage of Adam “Schiff for Brains” opening remarks for impeachment hearings. That same NBC channel has not covered a single one of Trump’s rallies or speeches. They will show a 30 second video of his speeches with NO AUDIO and then tell the viewing audience what THEY think he said that you need to hear.

Paul DAscenz

99.9% of every economic plan the Democrats have is not Feasible.
There Quest is to Destroy the USA!
PERIOD!

Lawrence Greenberg

Leftist ideology and the Leftist agenda are based on lies, misinformation, and deception. Leftist policies cannot stand up to scrutiny or discussion, so there is never any real discussion or those policies would be exposed for the complete failures they are or would be. Leftists make all sorts of promises so they can buy themselves votes with other people’s money. G-d help us if the Left ever gains complete control of our nation.

Wendell Fountain

Why should anyone pay attention to a fraudulent prevaricator? This fake Cherokee is a disgrace to herself, Harvard, and the nation at large!

carol

Obamacare was created to get us to where we are today: Medicare for All! The left has always wanted to control healthcare for the whole country because then they control EVERYONE! No matter what the Democrats come up with, the ultimate goal is to CONTROL everyone, NOT provide affordable healthcare! Screw the economy, it doesn’t affect them (so they think) cuz they are isolated from the rest of us! Their arrogance knows no bounds and the more poor and dependent we become, the more they can lord over all us peons! The left has NO intention of coming up with any ideas that will HELP AMERICANS since that means allowing THE PEOPLE more CONTROL over their OWN lives!!!

Brenda Blunt

She doesn’t know anything about anything! Idiot!

Ed J

Warren is the Poster Child for dysfunctional thinking built upon a foundation of abject ignorance. While health coverage for all is an admirable goal, her total disconnect with the fundamentals of economic reality is really amazing. Almost all of her assumptions about how to pay for M4A fail to hold water. Doctors and other health care professionals will NOT work for lower wages. Pharma will NOT be selling their drugs below cost, and in many cases would choose not to sell them in the USA at all under Warren’s plan. Doing away with health insurance companies is NOT reasonable in a free market system. American taxpayers will NOT embrace the monstrous increase in income taxes required to support her plan. M4A would be a disaster across the board on so many levels if ever implemented. The most tragic aspect of all of this is that she is getting so much… Read more »

Richard

Why do we waste our time even listening to this idiot.

Josephine pooley

UNBELIEVABLE!!! Just pure nonsense!

Helen Corey

Politicians who never built a business but lived off the taxes working people pay have no idea what makes a business grow. Politicians, bureaucrats in DC think “money grows on trees.”

Stephen Russell

ALL Dem plans KILL $$$ & we have nothing, its BS.
No exceptions.

Dave Campbell

Leftists can only sell their policies by lying about them.

PopPopB

I stile want to know if she and all the rest of our government officials are going to go on this health plain or keep their great plan that we have to pay for,while the rest of us have to go on her great plan by law. My thinking is for all you government people to get out of our health plan and leave us alone !!!!!!!

Irv C

I wouldn’t hire this woman to run a Popeyes Chicken Shack.

Jim

Fauxcahontas health care as phony as her Native American heritage.

Bob Wiggans

I am sure she can find several socialist countries to move to, please leave our republic alone. Many of our countrymen have paid the ultimate sacrifice for our country, our freedom and our way of life!

Steve B.

I laughed several times while reading this.But only to keep from crying.