What is the impact of Affordable Care Act (ACA) on the current U.S. real GDP in your opinion? Please provide the reference link (URL) to an article which supports your opinion.
Impact of Affordable Care Act (ACA) on America’s GDP
The Affordable Care Act (ACA) is a huge comprehensive piece of legislature, which addresses numerous features of the United States health care system. ACA does not only changes the non-group coverage market in America, but also requires most American citizens to have health care insurance. Moreover, it considerably develops public insurance and promotes private insurance coverage. Affordable Care Act has a great impact on the America’s real GDP. The fact that ACA increases revenues from an assortment of fresh taxes, America’s GDP will be affected due to increased spending. Since the amount of money spent on ACA already represents 17 percent of the country’s GDP and expanding, there is an anxiety about rules that increase this spending. If the present trend continues, America will spend an unjustifiable 40 percent of their gross domestic product on health care in the coming years (Picchi, 2014). This will occur as the health care expenditures continue to exceed the advancement rate of the general economy.
The current impact on the United States financial plan is mainly caused by the decision of the central government to increase its Medicaid compensation in association with the growth of coverage. Other economists have also stated that increased taxes to support public health care destroys economic advancement are decrease after-tax revenues of organizations and families. Increase appending on health care means that the government will have to borrow money for its financial support hence such expenditures increases inflation (Conover, 2012). Even though Affordable Care Act has received many criticisms, it also has a positive impact on the economy. For instance, economists have estimated that the act could improve medical spending more than $50 billion in the next coming years.