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The Effects of the Health Care Reform

Lately, all over the media, citizens have been appearing in town halls to say what they think about the health care reform. Among the top comments, several were about the money used to generate the health care reform, and other were about pre-existing conditions. Of course, the latter mentioned are only some of the thousands and thousands of things said during the past month. However, one huge and important thing has been missed, and that is the possible shortage of health care if the reform is passed by congress. Shortages usually happen when prices for products and services that are usually high (in this case in the cost of health care and life insurance), are artificially lowered by the government, causing a severe shortage. In other words, by lowering the cost of health care for Americans who earn less than $250,000, the government sells a cheaper version of this service for relatively unlimited use by the people. The problem is the following: people who usually go to the hospital for severe problems, such as a broken arm or other treatments that require trained professionals, are now going to go to the hospital for a minor headache, etc. This would create and extremely high demand for care, even though the supply would be very limited. Next, people who actually need a rather important treatment will have to wait in line for a long time to get treatment, since other citizens will use hospitals excessively. The results might end in life or death situations! After the first problem the government is going to encounter, life insurance companies are going to experience an even worse situation. Since a lot of people will be using public hospitals for treatments, insurance companies will find it useless to build new hospitals, making it highly unprofitable. On the other hand, with such demand and a tight budget at flat prices, the public hospitals will soon find themselves overwhelmed, and it would be very hard to maintain them, leaving them crumbling and almost not meeting the standards. People will soon realize that it isn’t worth the waiting to get public care, and will go back to the private insurance companies for care. From that point on, health care will be used by not many Americans, but paid by so many more.

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What Were We Told?

During his presidential campaign, President Barack Obama claimed to not raise taxes on middle class families. However, with all of the present reforms and new systems attempted by President Obama, it doesn’t seem logic to put them all on the field with a tightened budget. Now, Treasury Secretary Timothy Geithner, and National Economic Council Director, Larry Summers have been indirectly suggesting the idea to raise taxes to deal with budget shortfalls. According to Mr. Geithner, “We can’t make these judgments yet about exactly what it’s going to take and how we are going to get there”. Summers, on CBS’s “Face the Nation” said that, “It is never a good idea to absolutely rule things out”. Moreover, the squeezed federal budget released by the Commerce of Department last week showed everyone that is has been the worst since the Great Depression. At the same time, tax revenues have dropped and have caused outlays for the unemployment compensation program to rise. In conclusion, what we were told was nothing but a mere deformation of the truth to get voters to vote for Mr. Obama. It is most likely that taxes are going to get higher for middle class families. With all of the current spending, the government is soon going to find itself taxing the lower class families for its costly programs, during one of the worst recessions this generation has ever seen. 

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