Healthcare and Outsourcing of Jobs Issues in 2012 U.S. Presidential Elections

Ask an American why the Presidential elections are so important this year and his answer would be: it is the time to obtain mandate for action in 2013. What action he expects in 2013? Take steps towards arrest spiraling healthcare costs and unemployment. The 2012 elections have set the stage for a battle between the Democrats and Republicans over the Affordable Care Act (ACA), Medicare and Medicaid entitlement fine print, and federal debt and unemployment issues. 

Putting “Obama care” to Test:

The Washington Post reports that there are 25 lawsuits pending in various courts challenging the constitutionality of the Patient Protection and Affordability Act. If various poll results can be relied upon, many Americans do not approve the ACA. That prompts Republicans to say that a win by them would mean “repealing and replacing” the so-called Obama care.

Another term for Obama would further extend the debate on Medicare whether to replace it with a premium support system and whether to stop Medicaid grant to the states. If it is the Republican who is going to occupy the Presidential Office he too will have to face the pressure of growing costs of Medicare and Medicaid. The Supreme Court is seized with the issue of individual mandate. It can uphold the whole of ACA or a part of it, throw it out or send it to lower courts. Guessing game is on how the Court is going to view the case in March. 

Outsourcing:

 According to estimates, the business process outsourcing market is worth more than $100 billion. Many Americans see outsourcing as an evil that steal jobs. Politicians choose playing for the gallery – they conveniently forget that the jobs outsourced were never done in the U.S. before.  

Outsourcing needs to be seen in a different perspective. “C.E.O.’s rarely talk about “outsourcing” these days,” according to Thomas L Friedman, columnist, New York Times.  In an integrated world there is no ‘out’ or ‘in’ anymore, he says. For many C.E.O.’s world is a place where they make their products anywhere using the best talents at lowest cost and sell them anywhere through global supply chains. Can you blame them for that? 

Immigration:

The brightest brains come here (nearly 50,000 according to estimates by the Center for Public Policy Innovation) for higher education and leave after getting their degrees because they do not get work visas. U.S. needs an immigration philosophy better than the one practiced today. It should support immigrants to set up industries here. Policy of “mass expulsion” of immigrants being advocated by Mitt Romney may not just work for U.S. economy. As Friedman has echoed in his Article, there is no better place than America for those who imagine and design a product. There is no higher imagination-enabling society in the world than America.  And it is only America that has historically welcomed talented immigrants because of the competitive advantage talent brings.

The 2012 elections could well prepare the way for all good things emanating from the Healthcare reform law including the entitlement reform for Medicare and Medicaid and it is going to be full of drama.