If Democrats get their way and jack up taxes to attempt to cover a “Medicare for All” plan, not only would jobs be lost, but 2/3 of American households would be worse off. A majority of households would end up worse off financially with less disposable income.
That’s bad news for an economy that’s holding on by the thin thread of consumer spending. The study is an interesting exercise, but it’s not hard to anticipate the response from the Left.
Liberals’ preferred Medicare for All estimates tend to assume that a single-payer system could pay doctors and hospitals a lot less than private insurers do and that you could get a long way toward funding Medicare for All by socking it to the rich. Heritage made some key assumptions cutting in the opposite direction, though Heritage’s assumptions are a good bit more plausible than the lefties’ are.
The study assumes no payment cuts for medical providers at all.
The study was conducted by the Heritage Foundation and the results could impoverish the majority of Americans and widen the “wealth gap” liberals constantly complain about (while pushing policies that only make it worse).
In general, the study mainly drives home that the expected results of Medicare for All depend mainly on one’s subjective assumptions about how payments would work out and which taxes could plausibly raise that much money. It’s an enormous change from the status quo, and its effects are difficult to predict in an empirical, non-ideological manner. No matter how it worked out, it would require someone to pay a boatload in new taxes, though, which would leave a majority of households worse off than they were before.
Those increases in taxes too will, in turn, reek havoc on the overall economy. Even a hike in the corporate tax rate will have the net result of lost jobs and not just a few – 413,000 of them. Studies also show that Joe Biden’s plan would decrease the United States’ GDP by one percent. For a country barely hanging on economically, this could prove disastrous.