The Financial Policy Council, Inc., an independent economic think tank (“FPC”), warns that the Supreme Court’s momentous 5-4 majority opinion in NFIB v. Sebelius upholding the individual mandate-as-tax provision of the Patient Protection and Affordable Care Act (“PPACA”, commonly referred to as “Obamacare”) may throw the American economy into a new recession and induce capital to flee from the United States in a “flight to safety.”
The anticipated burdens of Obamacare on business have been treated elsewhere and need not be repeated here. We stress the economic impact: America’s economy will decelerate and possibly enter a double-dip recession as Americans prepare for a “new normal” with much less disposable income for spending and investment.
The United States — if not the world — may fall into a sharp downward spiral as entrepreneurs, investors and capital seek to preserve and hoard capital or move it to more hospitable climates. The United States may be left in the unenviable position of having sharply growing entitlements and obligations borne by a steadily shrinking and increasingly burdened tax base.
This will produce a powerful disincentive to invest, save, work, study or even remain living in the United States.
Read More: Supreme Court Upholding Obamacare
Follow Ziad K Abdelnour @