In the late 2000’s, I was very wrong about hyperinflation. I had unfounded confidence in a flawed view of the world which made me fall for simple projections peddled by confident people. In fact, I was very wrong about the Federal Reserve in general; I believed their responses to the crisis would quickly backfire with unintended consequences in a vicious feedback loop that certainly did not allow for a 2014 with record stocks, low unemployment, and no inflation – regardless of what may yet occur. Fortunately my risk aversion kept me from ever spending more than a few hundred dollars on silver.
In the early 2010’s, I was less confident about many things. But this blog has dutifully preserved a major mistake I must now confess: I was very wrong about Obamacare.
Two years ago, I fully expected that by now the law’s utter failure would be readily apparent. All the law’s interventions would be backfiring on a huge scale. The cost of plans would be increasing enormously. Insurers would be backing out. There would be undeniable negative effects on employment and the general economy. Every exception, delay, tweak, and twist of the Rune Goldberg machine would reverberate through the rest of the parts, unraveling in a vicious feedback loop of increasing interventions and unintended consequences.
But as I joined the rousing cries of the anti-government crusade, I started to look around, noticing that the looming Obamacare apocalypse didn’t seem to be getting any closer on the horizon. I started noticing that everybody was just appealing to the future. So I shut up and waited. And the future still isn’t here.
Sure, there are little stories all over the place of discontent. I certainly wouldn’t say the law’s been a roaring success. But a hundred million people didn’t lose their plans. Everybody didn’t see their premiums double. The people didn’t rise up and take to the streets in outrage. For the most part the healthcare industry and all the people in it seem to be plodding along pretty much about the same as before.
Now this doesn’t mean conservatives weren’t right about the law’s problems. Jon Gruber’s YouTube highlight reel has been confirming things Republicans have been asserting for years: the cost analysis was gamed, the details were deliberately, opaquely rushed, etc, etc. And Gruber’s attempt to pass off his clear defense of the clear subsidy language as a “speak-o” is the epitome of intellectual dishonesty.
Seriously, guys. A speak-o, if it’s like a typo, would be when you say a word and the context of the speech makes it clear you mean the opposite. Example: “I think Rand Paul could go all the way in 2016 for the Republicans and take votes from Democrats. I think Hillary will fade for the Democrats and Paul’s coalition will expand the Republican base. I’m a pundit so I know things. And that’s why I think a Democrat will win the White House.”
It’s clear from context that the intended word in the last sentence is “Republican,” and the speaker just mixed it up. But if somebody had actually said “Republican” there, and after a Democrat victory tried to convince people that in the speech he was clearly predicting a Democrat win while making a “speak-o” he would be laughably dismissed. If a “speak-o” means you can simply claim what you really said is the opposite of what you really said when it’s politically convenient to do so, then I’ve got a new campaign strategy for Todd Akin.
The most charitable explanation I can think of is that the subsidy language really was a mistake made by non-Gruber-people, but then Gruber assumed it was real and invented motives for it as he carefully and logically explained the reasoning behind it. But that’s not what Gruber said happened, either.
So if you’re still with me, it looks like Republicans were right about all the problems behind the law; they’ve just been wrong about how terrible the consequences of those problems would be.
The Rule of Law vs. The Rule of Man
If the Supreme Court accepts the previous version of Gruber’s argument about the subsidies, it would be an interesting consequence on the law itself. After a few years of incessant “rule of man” interventions to keep the thing moving, the “rule of law” would finally stick a fork in a law that was initially passed with “rule of man” corruption. Or maybe it wouldn’t. What do I know?