Obama and the Supremes

Posted: Jun 25, 2012 9:22:45 AM

Perhaps as early as today the Supreme Court will be ruling on the constitutionality of Obamacare.  This will no doubt create an enormous amount of political theatre. However, this morning we will look at this from an economic standpoint as to the effects of the decision. 

The following areas will be most negatively affected if the Supreme court rules against Obamacare.  Pharmaceuticals were set to get guaranteed additional earnings (in the billions) that will go away.  Insurance companies will no longer get 30 million people added to the rolls and will also lose out on all the additional income of premiums paid.  Hospitals that currently lose money on the uninsured will also lose out, as the mandate would have forced states to expand their coverage and pay these hospitals.   The biggest winners will be the unemployed and small business.  Small businesses may be more comfortable without the new regulations and start to hire again, which would be great for our economy in general.   These are the most important sectors to watch as the court decision comes into play.  They have the most to lose if the plan is stricken, and will experience major market gyrations based on the outcome.  Stay tuned as we will  know the answer this week.  


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