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Obamacare Unconstitutional: U.S. Federal Judge

White House spokeswoman Sarah Sanders said the judge’s decision “vindicates President Trump’s position that Obamacare is unconstitutional

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Protesters gather across the Chicago River from Trump Tower to rally against the repeal of the Affordable Care Act, March 24, 2017, in Chicago. VOA

A U.S. federal judge has ruled that the Affordable Care Act, widely known as Obamacare, is unconstitutional.

U.S. District Court Judge Reed O’Connor in Texas ruled Friday that a change in the U.S. tax law last year eliminating a penalty for not having health insurance invalidates the entire ACA.

Last year’s $1.5 trillion tax bill included a provision eliminating the individual mandate.

The decision is expected to be appealed to the U.S. Supreme Court.

The ACA will remain the law during the appeal process.

Health Insurance, U.S.
The HealthCare.gov website on a computer screen in New York, Oct. 23, 2018. A U.S. federal judge Friday ruled the Affordable Care Act unconstitutional. VOA

About 11.8 million consumers nationwide enrolled in 2018 Obamacare exchange plans, according to the U.S. government’s Centers for Medicare and Medicaid Services.

U.S. President Donald Trump promised during his presidential campaign to dismantle the ACA, a program that made affordable health insurance available to millions of Americans.

The president took to Twitter Friday night:

“The ruling seems to be based on faulty legal reasoning and hopefully it will be overturned,” U.S. Senator Chuck Schumer said in a statement. “Americans who care about working families must do all they can to prevent this district court ruling from becoming law.

“If this awful ruling is upheld in the higher courts,” he added, “it will be a disaster for tens of millions of American families, especially for people with pre-existing conditions.”

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U.S. President Donald Trump talks to reporters about the killing of journalist Jamal Khashoggi in Turkey during a bill-signing ceremony at the White House in Washington. VOA

Americans with pre-existing conditions, before ACA, faced either high premiums or an inability to access health insurance at all.

White House spokeswoman Sarah Sanders said the judge’s decision “vindicates President Trump’s position that Obamacare is unconstitutional. Once again, the president calls on Congress to replace Obamacare and act to protect people with pre-existing conditions and provide Americans with quality affordable health care.”

Also Read: Microsoft Adds ‘Digital Health’ Feature On its Beta Android Launcher

“Today’s misguided ruling will not deter us,” California Attorney General Xavier Becerra, the leader of an alliance of states opposing the lawsuit, said in a statement. “Our coalition will continue to fight in court for the health and well-being for all Americans.” (VOA)

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World Leaders Prepare for G7 Summit Even As Fears Over Global Economy Increases

The economic fears are rooted in the trade war between the United States and China

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G7 Summit
Security concerns will also be high on the agenda. North Korea has resumed its ballistic missile tests. Pixabay

The G-7 host, Emmanuel Macron,  has made fighting inequality the theme for the annual meeting of the seven industrialized nations, which opens Saturday in the French seaside resort of Biarritz with the leaders of the United States, France, Britain, Germany, Italy, Japan and Canada in attendance.

The French president has invited leaders from several other countries, including six African nations, to take part in the annual discussion of major global challenges. But analysts say any grand ambitions for the summit will likely be stymied by pressing economic concerns.

Most worrisome are recent indicators from both sides of the Atlantic of slowing economic growth and a possible global recession.

Earlier this month, government bond yields in both the United States and Germany were briefly higher for two-year than 10-year bonds, a sign that investors see significant risks ahead, says economist Jasper Lawler of the London Capital Group.

“Particularly in the U.S., it’s actually been a very reliable signal to point towards a recession.”

Adding the investors’ fears, the usual fiscal tools to tackle a recession might not be available.

“We don’t have that usual fallback from central banks of cutting interest rates because they already have, and they are already at rock bottom levels,” says Lawler.

G7 Summit
Summit host France is determined to not let economics overshadow its own agenda. Pixabay

The economic fears are rooted in the trade war between the United States and China, which has resulted in both countries imposing tariffs on hundreds of billions of dollars’ worth of imports. Europe is suffering additional headwinds, says economist Lawler.

“The trade war, but also just the auto sector, the transition from using diesel cars to electronic vehicles. It’s a period of uncertainty that’s unduly affecting Europe.”

Summit host France is determined to not let economics overshadow its own agenda — and top of the list is climate change, says John Kirton of the G-7 Research Group at the University of Toronto.

“It’s driven by the scary science which is unfolding every day, but more importantly by the historic heat waves that have afflicted Europe, including France.”

U.S. President Donald Trump left last year’s G-7 summit in Canada early, before the leaders had discussed climate change, and later disavowed the final communiqué. This year France is determined to keep the United States on board, says Kirton.

“President Macron I think has structured his agenda to allow Donald Trump to be at his best. Gender equality — the president has been very good at that, it’s at the top of the French list. Education — yes, and also health. It’s the president of the United States that’s been pushing the G-7 to try to get it to deal with the opioid crisis.”

G7 Summit
U.S. President Donald Trump left last year’s G-7 summit in Canada early, before the leaders had discussed climate change, and later disavowed the final communiqué. Pixabay

Security concerns will also be high on the agenda. North Korea has resumed its ballistic missile tests.

Meanwhile the standoff between Iran and the West has escalated over the seizure of a British-flagged oil tanker in the Persian Gulf, which followed the detention of an Iranian vessel in Gibraltar.

Burgeoning anti-government protests in Russia and Hong Kong also pose questions for the G-7, says Kirton.

Also Read: Purchase Rights for Huawei Extended By US

“Have we seen the tide [change], where authoritarian leaders in various degrees are no longer in control? It may not be the way of the future. In fact, if that’s the case, then how can the G-7 activate its distinctive foundational issue: to promote democracy?” Kirton asked.

Meanwhile British Prime Minister Boris Johnson will meet Trump at the G-7 for the first time in his new role. Both leaders are hoping for a rapid trade deal amid signs of a steep economic downturn in Britain as it edges closer to crashing out of the European Union with no deal at the end of October. (VOA)