Take a Mulligan on ObamaCare?
As concerns trickle out from both democrats and republicans regarding difficulties implementing ObamaCare, one has to ask whether it would make sense to suspend every aspect of the law not yet implemented, and re-write certain provisions for which the marketplace and businesses are reacting in ways harmful to the economy (such as lagging full-time employment growth due to the 30 hours per week limit that separates employees for which employers must pay an ObamaCare penalty). This would probably enable business to react appropriately to a less distorted economic environment, and provide the necessary input to legislators to create a more workable program to ensure health care access. The reduction in uncertainty might lead companies to increase investments which, in many instances, leads to enhanced profitability. Of course, as corporate profits rise, all other things equal, stock prices tend to follow.
All questions or comments are welcome.
Bob Bilkie, CFA