Monday, February 27, 2017

Spending money saves money

Too many “budget cutters” think that taking benefits from one group of people will save lots of money for a few other people.  Actually taking benefits away will just transfer costs elsewhere.

Take for example health care.  “Conservatives” think that spending less on Medicare and Medicaid will save billions.

No, it will just transfer costs to somewhere else.  Corporations will have to spend more on employee healthcare or risk having more sick employees.  States will have to pay more for healthcare, if they so chose.

If people can’t afford health care, they will be less able to work and have less taxable income.  They will also have less money to spend on all the goods and services companies provide.  If there are fewer buyers, then there will be fewer goods and services sold.  If there are fewer goods and services sold, then there will be less profits.

“Conservatives” should be careful what they ask for.  They may just get the opposite.