Will SCOTUS Force Republican States to Govern With the Rhetoric They Use to Gull the Rubes?

Right now, the Supreme Court (‘SCOTUS’) is weighing a decision to gut some of the ACA (‘Obamacare’) healthcare tax subsidies. What’s staggering is how much this will cost (boldface mine):

This provides a way of approximating just how much money in tax credits each state could lose if the Court rules that way. We’re talking about enormous amounts of money: Florida could lose nearly half a billion dollars per month in subsidies to its constituents. Texas could lose a quarter of a billion dollars per month. North Carolina and Georgia could each lose over one hundred million per month.

Based on 2013 BEA state-level GDP data, in Florida, the loss of these subsidies is equal to around 0.7% of total state GDP (roughly $5.3 billion). The healthcare sector would contract by roughly 7.5%. To put the $5.3 billion in perspective, Florida’s entire state budget in 2014 is $77 billion. Keep in mind, especially regarding total GDP, I’m not accounting for any secondary spending multipliers (e.g., hospitals spend less money in state, shrinking GDP even further). The other states aren’t hit as hard, but it’s not negligible.

The white nationalist and regionalist organization known as the Republican Party really dug itself a hole here with the anti-Obamacare rhetoric. Yes, they successfully used dire warnings of big gummint to gull the rubes (because good healthcare would turn your kids into Kenyo-Marxist Mexicanist Muslimanian Atheists Who Say Their Prayers in Homosexual. Or something). But the reality is that the South has risen again largely due to a massive Keynesian stimulus–one not experienced by the rest of the country.

Even the most incompetent warlord knows you give your clan the shiny things, not take them away.

This is where the Palinist Impulse leads you: nowhere good.

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1 Response to Will SCOTUS Force Republican States to Govern With the Rhetoric They Use to Gull the Rubes?

  1. sethkahn says:

    To answer the question in your title directly: no. Those GOP ruling regimes will simply ignore the reason for the economic damage and use it as an opportunity to shriek “Austerity!” Then they’ll do what they always due during self-induced economic illness–privatize anything they can get their hands on and watch everyone else starve in the street. Nothing we haven’t seen before.

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