Economist Chris Butler: Stock Market Response To Ruling On Obamacare Only A 'Sugar High'

PHILADELPHIA (CBS) -- Economist Chris Butler, of Butler Lanz & Wagler, told Talk Radio 1210 WPHT morning host Chris Stigall that the positive response of the stock market following the Supreme Court's ruling on Obamacare is only a "sugar high."

"Reality will prevail, and reality is probably less enthusiastic than some of these stocks behaved yesterday, that's for sure. Tenet Healthcare was up twelve percent yesterday; I really don't think that it was that meaningful to Tenet Healthcare, but you're right. This is a sugar high. Enjoy it while it's here."

While the ruling has only just come down, Butler thinks that it, like many, is not permanent.

"Everything that's been decided can be and probably will change over time. I don't think that we're done yet, because I too have been really miffed by this idea that the problem with our healthcare system is our insurance. The only reason the insurance costs people a lot of money is that healthcare itself costs people a lot of money. So, what this Affordable Care Act (ACA) did was created a whole bunch more demand with dealing with the supply at all. So, the healthcare prices are going to go up. That's just ECON-101. That's the law of supply and the law of demand."

According to Butler, the ACA has put the brakes on the economic recovery that we are in and its impact will only get worse.

"We're wondering why we're not hiring at the rate that we usually do in a recovery. We're wondering why the economy itself isn't growing as much as it usually does in a recovery. It's not that it's all the ACA -- it's not -- but the ACA is not helping in fact it is hurting…We are already seeing an impact, Chris, and it is probably going to get worse. We haven't seen the full implementation of the bill yet."