There's an old saying, when you're in a hole, stop digging. That is exactly what is going on when it comes to the economy and President Obama's policies. Our economy is like a car engine on a cold winter morning; barely turning over, but the Administration's remedies are making it harder for that engine to gain traction.
Obamacare, the health care law is a good case in point. A new study shows Obamacare will cost a total of $27.6 billion and nearly $30 billion just to implement the blizzard of new regulations and required paperwork. Again, I’m not talking about the increased costs you might face in premiums, or higher costs doctors or hospitals might face as a result of the law.
We're just looking at putting the law into effect.
Here's the details: the private sector will bear the biggest burden of those costs, $20.4 billion over the lifetime of the law. States will have to pony-up $7.2 billion. Now, keep in mind this is a law a lot of states don't even want to implement.
Five states will face $1 billion or more in costs- Illinois, Florida, New York, Texas and California. Most of those states already have financial problems, while Florida and Texas have filed suit to stop the law.
Looking deeper, here's what we'll get for the money. The single most expensive rule is the one requiring companies to have common standards for reporting to the government. That rule will cost companies nearly $6 billion in IT and software costs.
Setting up the insurance exchanges will cost the private sector $3.5 billion. Here’s one I didn't even know existed in Obamacare; a requirement for menu labeling by grocery stores, add another $757 million.
Sam Batkins, who wrote this study at the American Action Forum, says his estimate of costs may be on the low side. However, others have said the costs may be higher than $5 billion, and that is the problem.
The conversation about how to reform health care started with how to bring down the costs of health care in this country. At the time, I said Obamacare would no doubt raise costs, not lower them. Now we find that's absolutely true.
It's not just the price tag that is the problem. Now we find just the specter of Obamacare is causing companies to delay or slow hiring plans.
So there you have it. A program that is too expensive, is costing jobs and sure to depress growth. It’s time to get rid of Obamacare.
Gerri Willis is the host of "The Willis Report" (5PM/ET), a primetime program that covers the leading financial and political stories of the day and their impact on consumers. Click here to see more from Gerri Willis.