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Friday, July 13, 2012

Obamacare

I've been trying to find some good critiques on Obamacare, and really can't find anything better than this comment on socialized medicine which I posted in April 2011. "Health" is inherently uninsurable; we all get old and sick. Bill Sardi has pointed out the inherent contradictions of medical insurance, the vehicle chosen by the Democrats to socialize US medical care.

Insurance is an awful way to pay for anything. The low risk subsidize the high risk, every casualty is maximized by individual self-interest and collective neglect, and on and on. To the extent insurance works at all, it is only where insurers are able to discriminate in pricing risk. If insurers are not allowed to price risk via market mechanisms, they will price risk via government. The law (there's actually no such thing as a 2,454 page "law") should be called the Affordable Cartelization Act. Read here to see some of the jockeying already taking place.

The alternative to mandated medical insurance is single-payor socialized medicine, which seems to work okay in places of 5 to 30 million white people with lots of natural resources for net export. Europe, on the other hand, is sinking under its entitlement obligations, as are Medicare and Medicaid.

I'd like to believe in a place which provides a public guarantee that none of its citizens will ever want for medical necessities, regardless of condition. In practice, it always ends in deficits and increased net tax consumption. Medical care is a scarce commodity like any other. It can be rationed via the market or it can be rationed via the government. The latter always ends in unsustainable demand and malinvestment. I'd love to be proven wrong.

1 comment:

Overwatch404 said...

Good post. I made a similar post regarding San Bernardino. Government trying to fight the market. Doesn't work.