Wednesday, March 17, 2010

Why Obamacare will fail to do what it claims

Another excellent article by Doc Zero.

If you have studied the history of socialism and communism around the world, you know what the inevitable results of a nationalized bread industry would be: hungry people staring at dusty shelves containing a few expensive loaves of low-quality bread. Humanity has invented few weapons that kill people more efficiently than collectivist agriculture.
Why is this always the tragic outcome of collectivism? After all, government control of goods and services is presented as a way to control costs. The bribes and shady backroom deals perpetrated in the service of ObamaCare are supposed to produce a system that increases “access to health insurance” and make it more “affordable.” The inevitable result will be a system that reduces the quality of care, makes it harder to come by, and increases its overall cost to American citizens.
The same thing has happened across decades and around the world, every single time the State has taken control of a private industry. There’s some grim amusement in watching a supposedly educated man like Paul Krugman make an utter fool of himself trying to pretend otherwise. (“In Britain, the government itself runs the hospitals and employs the doctors. We’ve all heard scare stories about how that works in practice; these stories are false.“)

Follow-up essay by J.E. Dyer here on how the government cannot bend the cost curve downward.