Cruzing & Obamacaring
Ted Cruz undertook an almost marathon talking session against Obamacare. Not surprisingly, he does not have any need of Obamacare. As a senator, he already has access to government funded healthcare. However, he also does not need this coverage as, apparently, he falls under his wife’s Goldman Sachs’ coverage. Interestingly, while one of the anti-Obamacare talking points is that the cost of providing insurance will destroy business, the top executives at Goldman Sachs have their $40,500+ family premiums paid for by the company. As a point of comparison, the median household income in the United States is $50,000.
Naturally, to attack Cruz’s claims by pointing out his health care situation would be a mere ad homimem. However, his situation does serve to illustrate the incredible health care gap between the wealthy pundits and politicians attacking Obamacare and average Americans. It is certainly a thing of beauty to see a man with incredible coverage provided for by his wife’s employer rail against a law that would require almost many employers to provide lesser coverage to their employees.
It also illustrates an interesting inconsistency, namely that he seems to hold to the position that his wife should receive health care benefits from her employer but that the same is not true for other Americans. Of course, it is consistent with the view that the wealthy should be treated differently from everyone else.
It might, however, be objected that Cruz is right. After all, Goldman Sachs is incredibly profitable and can easily afford such premiums as part of the very generous (some might say excessive) compensation packages they offer to their “top talent.” Lesser businesses, those run by and employing the little people, cannot afford to provide even the minimum health care benefits required by Obamacare and, apparently, the employees do not deserve such coverage. As such, health care benefits from employers are for the wealthy but not for the little people.
While this approach has some merit when it comes to small businesses, the obvious counter is that the smaller businesses are exempt from this requirement. However, the potential economic impact of Obamacare is worth considering. As is the potential economic damage of the threatened government shut down.
It has been claimed that the cost of implementing Obamacare will cause businesses to fire people and to cut employee hours so that they are not full time employees. Presumably this will not impact the wealthy—Cruz did not seem worried that Goldman Sachs would fire his wife or cut her hours so they would not need to provide healthcare benefits.
While cost is a point of concern, there is the obvious question of whether businesses actually need to fire people and reduce hours or not as a rational response to Obamacare. That is, would the increased cost be so onerous that the firing and cutting would be a matter of survival? Or would it merely be a matter of slightly less profits? After all, some businesses obviously believe they can afford to provide extremely generous health care benefits to some people, so perhaps those affected can afford to provide lesser benefits to their workers.
This does, of course, raise some interesting questions about what benefits employees should receive and what constitutes economic necessity. However, these matters go beyond the scope of this essay. However, I will note that I do agree that health care should not be linked to employment and that I do agree that it should not be the responsibility of businesses to provide health care coverage. Unfortunately, the structure of health care benefits in the United States is such that having businesses as the provider is the main viable option. The other is, of course, having it provided by the state. Unless, of course, health care could be reformed to the point where average individuals could afford quality health care on their average incomes.
Oddly enough, Cruz and others have spoken of all the terrible damage that Obamacare has done and is doing. While this might be merely a slip of tenses, Obamacare cannot be doing any damage yet—it has not gone into effect. As such, it is an error to speak of the damage it has done—at least until it starts doing damage.
Cruz also made use of hyperbole and a rhetorical analogy by trotting out the absurd comparison of Obamacare to the Nazis. In the past, I have advocated a bi-partisan ban on this (Democrats use it, too) and I still support this proposal. As a general rule, only things that are comparable in badness to the Nazis should be compared to the Nazis. Even if Obamacare does all the awful things that certain Republicans claim it will do, it will obviously fall far short of starting a world war and engaging in genocide. Making the Nazi comparsion seems to show that a person has nothing substantial to say or that he has an impaired grasp of reality.
While Obamacare will certainly have problems, Cruz and his fellows have not offered any alternative plan of any substance. For the most part they make vague claims about market reforms and some even advance the absurd idea that people can just rely on the emergency room. While it is fair to be critical of a law when one does not have an alternative, the Republicans need to offer something other than threats to shut down the government. This makes these Republicans seem rather crazy.