Monday, January 13, 2014

Question for All the Central Planners Out There

Question for all the super-smart central planners out there: How do you lower the cost of a product or service?

It is an iron-clad rule of economics: The only way to reduce cost is to increase supply or decrease demand. 

Forget reducing demand. That's not happening, because we're not talking about a luxury good like wine or iPods. We're talking about getting your head stitched up when you fall off a ladder, or getting your gall bladder out. Demand isn't going anywhere, so that leaves us with the supply of health care. Not health insurance. Health care.

And Obamacare does nothing to address cost, because it doesn't increase the supply of health care. If you wanted to increase the supply of health care, you could come up with lots of ways to do that. However it does nothing of the kind.

In fact, Obamacare is chock-block full of policies and regulations that further artificially limit supply.

A bill that increased the supply of health care--not health insurance!--would be a bill with majority support.

Alas, the same folks who wrote this failure of a law will likely be the ones to write the single-payer law to follow.

1 comment:

  1. Hampton's RedshirtJanuary 14, 2014 at 10:41 AM

    Well you see, the answer is simple, it is all about slavery: Yours.