this post was submitted on 02 Nov 2025
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A Boring Dystopia
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This has the potential for a death spiral on all of the US economy. 1. its highly inflationary. 2. People choosing to not have health insurance is a drop in GDP, and a cause of hospital closures which is another drop in GDP, and access to healthcare. People dying hurts GDP too.
US economy already is highly inflated due to 5% points of GDP higher than every other nation spent on healthcare. Obamacare/ACA was a republican compromise to prevent Berniecare/mediare for all. The GOP criticisms that public subsidies for private extortion just makes the private extortion harsher. But only Berniecare is the answer.
Why would GDP drop if people stopped having insurance? (Serious question)
I'm no expert, but i suppose because it reduces the flow of money - fewer transactions (people not getting healthcare, not billing insurance, insurance not paying for healthcare given to people because they're not getting any healthcare) = reduced total domestic product. Whether it's reduced by a measurable amount is another question.
I think also the fact that sick people usually don't work, and in the US they don't get paid when sick, so less money available to be spent.
both your insurance payments and healthcare costs/wages count as GDP.