The Latest Man-Made Disaster Foisted On The U.S. Economy

This week, millions of Americans remain without power across the East Coast, thanks to the unleashed fury of Hurricane Sandy. Economic activity was suspended in large part, as citizens braced for survival. For those impacted, their personal plans involving future investment, travel and savings were deferred simply to manage their way through their local emergencies.

Many state governments, such as those of New Jersey and New York, are scrambling to deal with their unique concerns, with or without prompt disaster assistance from Washington. Estimates of the damage and lost business from Hurricane Sandy now range from $7 to $50 billion. Thanks to the prospect of swift inter-government cooperation and to the remarkable generosity of the American people, affected communities will chart a sound path toward recovery.

From an economist’s point of view, man-made disasters often create many of the same direct and indirect effects as those brought upon us by more natural forces. The economic losses from man-made disasters are just as real as those from natural disasters. New taxes imposed today are collected from tomorrow’s pocketbooks. New taxes and increased government spending shift resources away from the individual and the entrepreneur. In 2014, the new federal taxes enacted as part of Obamacare could create similar and dramatic consequences within our states. Fortunately, there is still time for Congress to act in 2013 to prevent much of this damage from hitting.

First, there is little doubt that implementing Obamacare would disrupt access to many healthcare services provided today. Avik Roy, another Forbes contributor, has published physician results from his state surveys related to Obamacare. In Ohio, estimates are that nearly 1 in 4 doctors will stop accepting Medicare patients altogether. Thirty percent of Ohio doctors say that they will place “new or additional limits” on accepting Medicare patients after their fees decrease by ten percent or more. In Wisconsin, 21% percent of respondents to the National Physicians Foundation survey indicated that they plan to raise fees on those with private insurance in order to compensate for the cuts.

Read More at forbes.com . By Rex Sinquefeld.