Strengthening Constitutional Self-Government

No Left Turns

Health Care

Locking in Failure

      One of the primary tragedies that will largely go unnoticed by most voters is the uncreated wealth and lost innovation within the healthcare industry through the mandates, regulations, and increased taxes of Obamacare. In a manner reminiscent of Hazlitt's "Broken Window Fallacy" whereby many believe that overall wealth is made by the repair of a shopowner's busted window only because they never consider that said shopowner could have spent his money in some other productive manner, many will believe that health care goods and services have been created because of government intervention that delivers  insurance policies to citizens. This will ignore the destruction of wealth accomplished by government spending and the greater costs of its primary inefficiencies. One of the primary virtues of open markets is their transparency of failure which leads to the opportunities for new investment and entrepreneurial activity within an industry. If a product and its delivery within an industry is not chosen by a critical mass then new methods will be ventured.

      What seems a basic insight is missed frequently by voters unable to connect sound intentions with long term effects in political economy. Thus, the current failures of our system: favorable tax treatment to employers for provision of healthcare which create the limited out of pocket exposure the consumer has to his health care decisions and the consequent effects on escalating costs will continue. The critical function of market correction can't happen because policy misdirects resources. The costs will continue to rise for consumers and now for government expenditures. The real consequence will be the future call by liberal pols to cut out employers and have a single-payer. This makes repeal and replace all the more significant if we are to avoid that most tragic of fates when our bodies are now the wards of the state.

 

 

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