11 Sep 2009

Blaming the Market

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Coyote identifies precisely what’s going on with “Health Care Reform.”

The leftish political strategy for over 100 years has been

1. Regulate something

2. Blame the free market for inevitable disruptions caused by the regulation

3. Use the above to justify more regulation

4. Repeat

We have an artificial situation, created by government tax policy in the first place. Healthcare charges have been removed from market influence because the consumer has not been paying them, his insurance has. The consumer normally does not buy his own insurance. Tax policy has arranged for health insurance to be a benefit of corporate employment.

When you do get to buy your own health insurance is when you lose your job, and then, ouch! you tend to find out just how expensive being a member of a maginal, ill-serviced market can be, at the very time you can least afford it.

Reforming health care simply requires transferring the tax deduction to individuals, reducing the burden of litigation and consequent staggering malpractice insurance costs and defensive medicine, and removing state barriers to insurance competition. Democrats don’t like any of that. When Whole Foods’ John Mackey made several of these suggestions in the Wall Street Journal editorial, his company was subjected to a boycott.

Hat tip to the News Junkie.

One Feedback on "Blaming the Market"

Scott D

Another good example would be the Alternative Minimum Tax. Congress wails that the “middle class” needs tax relief — from the very monstrosity that they created, and which they have to amend every single year now.

I’ve often wondered whether this is because there are so many lawyers in Congress. That is, after all, their business model. You get paid to create problems, which you later get paid to “solve”.


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