Medicaid Cuts, Bankruptcy, and the Big Beautiful Bill

The Big Beautiful Bill is here, along with Medicaid cuts and a tsunami of misinformation. Remember the promised $5,000 DOGE checks? Those on the political right believed they were getting free money (socialism), adopting Elon Musk, and supporting DOGE. Yet, here we are… still waiting. Musk has now been dropped by the right like a bad habit that started with a meme and will end with medical debt. The same fantasy of Mexico paying for a border wall, but reality tells a different story.

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Of course, you don’t have to believe me, but here’s a question: If Mexico was going to pay for the wall, why did the Big Beautiful Bill allocate $50 billion for its construction?

Medicaid Cuts and Medical Debt

The number one reason people file for bankruptcy isn’t reckless spending; it’s medical debt. With the Big Beautiful Bill and Medicaid cuts threatening coverage for nearly 12 million Americans, expect bankruptcy filings to rise faster than a SpaceX launch.

Combine this with economic downturns, tariff wars, education cuts, and FEMA budget slashes, and we’re staring down a worsening crisis with a recession expected as early as this year. Bankruptcy filings have already increased this year compared to last.

The Trump Tariffs and Economic Uncertainty

Consumer confidence is plummeting, and the GDP is shrinking. Businesses are struggling with erratic tariff policies. How can they plan when percentages shift overnight on President Trump’s whim? This volatility breeds inefficiency, lost revenue, and higher prices. As I’ve said before, chaos breeds political instability, which leads directly to financial instability. A toxic relationship doesn’t work any more than a toxic economy does.

The “Big Beautiful Bill” and Political Misinformation

The Big Beautiful Bill, sometimes rebranded as the Big Ugly Bill, is a mess. It’ll cost taxpayers more while padding the wealth of those already wealthy. And no, it doesn’t include any $5,000 DOGE check clause.

Misinformation is the new normal. Consider recent claims: Floyd Mayweather facing bankruptcy; Elon Musk claiming that Social Security is a Ponzi scheme. Where are the mass fraud arrests? Thought so.

Where to Find Credible Economic Information

To cut through the noise, rely on credible sources such as economic reports and journals from Oxford Economics, JPMorgan Chase, Bank of America, Wells Fargo, Merrill Lynch, and Goldman Sachs.

These institutions are loyal to their shareholders, not partisan agendas, so they’re legally bound to produce accurate financial analyses. Or, you can guide yourself by people on social media who are not experts in their field and probably aren’t experts in anything, except ignorance.

Why Prices Keep Rising

Let’s talk costs. When tariffs increase, the cost of importing goods also rises. Businesses can’t simply “absorb” these costs. They’re legally obligated to remain profitable for their shareholders. If they tried to eat the losses, leadership would be ousted, and stocks would tank.

Yet, social media buzzes with the idea that corporations should absorb those losses, despite the fact that most business owners wouldn’t accept that logic for their own business because they realize they would be bankrupt in three months. Check out my LinkedIn posts if you don’t believe me.

Even a new study by the Federal Reserve Bank of New York Consumer Expectation, states that three-quarters of those businesses surveyed said they are passing the costs of tariffs on to consumers. Of course, the keyboard financial warriors also try to counter-argue that the businesses can afford to lose the money.

Ever come across a business that was created with the purpose of losing money? Me neither unless it was a front to launder money. It’s a fundamental misunderstanding of the business world, one fueled by misinformation, a sprinkle of ignorance, and a lack of critical thinking skills.

Honestly, it’s not that complicated. If a business loses money, investors and shareholders lose money. How do you think that will go over? Less money for shareholders, less money circulating in the economy. Not to mention the soon-to-be “x” board of directors.

Here’s a bit of advice: Never tell your shareholders that, since the company can afford to lose money because of the tariffs, they will.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.