The Economic’s of Health Care vs. The Right to Health Care.

This clip, by Illinois state senate candidate Dr. Barbara Bellar, makes you think about the realities which lie ahead, with the implementation of “The Affordable Care Act” aka. “Obama Care”. She states the reality of the situation, then asks, and we all should have asked, “what could possibly go wrong?” Here is another example of a Government solution in search of a problem, a problem which was created by Government in the first place.

Is health care a right? No! Health care is a good or service, provided in the market just like a car, food, or a cell phone. If  you produce  something, who owns that something? You do, and if anybody takes it from you, without your consent, it is theft. What you produce becomes your property aka. property right. If you provide a good or service in the health care field, which could be anything from an aspirin to an MRI machine, or your service as a doctor or a nurse, no one can force you to give the good away or perform your service for free. Anyone can make a contract with you, according to terms you both mutually agree upon, to facilitate you providing the good or service to them. This is how exchanges happen in the market. Unfortunately we operate in a hampered market, and when Government intervenes into the free decision-making of individuals, we start down a road of higher prices and lower quality.

The Affordable Care Act creates incentives which  increase the demand for health care, and at the same time puts constraints on providers, which means less incentive to produce health care services. As demand rises and supply decreases, according to the law of supply and demand, the price goes up making health care less affordable.  Government will try to enforce price controls like they do now with Medicare payments to doctors. Doctors aren’t taking Medicare patients as a result of the mandated payments, because the payments don’t cover the cost of the service. This will happen with The Affordable Care Act. We will move toward the point where we have free health care and no one willing to provide it, (at the Government mandated price). Before we get to that point though,  talented individuals will be forced out of the profession, because they have many other options to pursue, and the people taking their place won’t be of the same caliber.

If Government intervention is supposed to make everything better, why does all Government intervention end up driving prices up? Look at sectors of the economy that the Government regulates the most. Energy costs are going up because of EPA mandates, and Government “investment” in green energy companies, which are going bankrupt. Medical costs were going up, which was one of the reasons for The Affordable Care Act in the first place. Do you think using corn for fuel, instead of using it for food, drives up the cost of food. Government drove up the price of housing with easy credit, low-interest rates, and printed money,before the bubble burst in 08. One of the only sectors that Government hasn’t been able to intervene, not for the lack of trying, is the tech sector. Which direction are the prices moving in the tech sector up or down?

Calling something a right doesn’t make it so, but it allows political cover for our “public servants” to use Government power to substitute their decisions for the decisions of each individual. This interference works against the inevitable forces of the market. These forces are constantly trying to correct for the economic ignorance of our “public servants.”

Explore posts in the same categories: Econ. 101, Government and Politics

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