Posted tagged ‘Socialism In Installments’

Lets Look At Government Run Health Care

August 4, 2016

doctor with stethoscope isolated on white background

In this article from economicpolicyjournal titled, An Obamacare Designer Confesses: “How I Was Wrong About Obamacare”, we get to look into the mind of a bureaucratic central planner. Dr. Bob Kocher advised the President on Obamacare. In the article he said, “I was deeply committed to developing the best health-care reform we could to expand coverage, improve quality and bring down costs.

Central planners think they can ignore the laws of economics by simple decree. Economic forces don’t listen to planners. These forces are consistently working trying to correct the plans of planners. How could the Dr. think you could expand coverage, improve quality and bring down costs? Increasing demand without increasing supply makes it impossible to lower costs. It’s simple economics.

THE ANSWER IS MORE CENTRAL PLANNING

Excerpt from the article: “Dr. Kocher, admits that he and the other central planners did not understand the market correctly. Despite Obamacare doing everything possible to push medical care in the direction of mega-operations, the small operators have proven to be most efficient and with the best quality service.

So what is Dr. Kocher’s remedy to the problem? More central planning of the sector that is working. Excerpt from the article: “The man doesn’t get it. The hampered by regulation free market out did his planned medical care but instead of rejecting central planning of healthcare altogether and allow care to develop on its own on a free market, he wants to use a failed methodology, central planning, and apply it to the one sector that is succeeding because it has been free of such planning, with all sorts of new micromanaging of small providers.

The Doctor is essentially telling his patient, the remedy for your concussion is to allow yourself to get hit in the head harder.

ANOTHER ONE BITES THE DUST

Who would have thought that when health insurance companies started to sell a product that was not insurance they would go bust? Obamacare wasn’t meant to succeed, it was meant to fail. Politicians figured insurance companies would get blamed which would pave the way for a Government single payer healthcare system.

In this article, Aetna Latest Insurer To Question Obamacare’s Future, we see the consequences of calling something insurance when it isn’t. Aetna will show a $3oo million loss this year on its Obamacare business. Economics tells us losses are bad and profits are good. These sustained losses tell the business owner his business isn’t viable. He should cut his losses and move on to something else. Profits tell the business owner that people value his activity and it should be continued.

Health insurance companies loosing money in Obamacare means the activity should be discontinued in order to stop wasting of resources. It’s that simple.

LETS LOOK AT THE CENTRALLY PLANNED V.A. HEALTHCARE  SYSTEM

Two years ago Obama got rid of General Eric Shinseky as Secretary of Veterans Affairs. Bob McDonald replaced him. Problem solved, let’s move on to the next problem. Unfortunately they didn’t change the incentives the new Secretary had to make decisions under. If incentives didn’t change, the results won’t change.

Read this article titled, V.A. Spent Millions On Costly Art As Veterans Waited For Care. This headline doesn’t surprise us because we understand “incentives matter”. The underlying incentive for every government agency is to expand its power. Government agencies shouldn’t be judge by the goals they wish to achieve. They have to be judged by the results they produce.

When Senator Joni Ernst offered an amendment to the Military Construction and Veterans Affairs and Related Agencies Appropriations Act (this makes a terrible acronym MCAVARAAA) to specifically prohibit funding for art work (click on article here), it wasn’t even taken up, let alone adopted. This went down to defeat with a Republican controlled Senate!

The V.A. is an example of government run healthcare that has been around longer than Obamacare. If our Republican politicians won’t even change the incentives for something this obvious, what makes us think they will change or repeal Obamcare if they control the House, the Senate and the Presidency?

 

Related Article – Incentives Matter, at austrianaddict.com.

Related ArticleThe Economics of Healthcare vs. The Right to Healthcare, at austrianaddict.com.

Related ArticleThe Reality Of Obamacare, Socialism in Installments,  at austrianaddict.com.

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Must Reads For The Week 7/12/14

July 12, 2014
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Border Patrol Agents Contracting Scabies, Agent Who Speaks Out, Given Cease And Desist Order, at benswann.com. The truth about the conditions in these detention centers is what individuals higher up the Government food chain don’t want anyone to find out. “Because I stood up and told the truth they are going to terminate me and I am going to fight it” says Agent Ron Zermeno. ‘He went on to say that his bosses are more worried about their promotions and their bonuses than protecting the country’. No matter what side of this issue you are on, can we all agree that politicians and bureaucrats in Government have made a complete mess of the situation because politics trumps logic and reason.

ER Use Skyrocketing With Obamacare, by Ed Morrissey, at hotair.com. Once again the unintended (or possibly intended) consequences of Government intervention in the free market rear their ugly head. Prices coordinate supply and demand. but when Government policies incentivise demand and constrain supply, well you figure it out.

The New US Tax Form, at zerohedge.com. This is supposed to be a bit of humor,but the question has to be asked: if individuals in the IRS don’t have to comply with the law, why would anyone expect the rest of us to comply with the law? The break down of the rule of law happens incrementally over a long period of time, and then at some point the marginal straw finally breaks the camels back.

Finally A Loss For Socialist Kshama Sawant In Seattle, at economicpolicyjournal.com. Do Uber and Lyft realize this is just an incremental step toward more Gov. control, and not a win for the free market. Here is an excerpt, “There will be no cap on the number of for-hire drivers: We have deregulated a highly regulated monopoly,” Seattle Mayor Ed Murray said. It should be noted, though, that this step is far from a complete free market step. UberX and Lyft will now be part of a new government created cartel, that will limit others from entering the Seattle taxi industry. The city will only issue 200 new taxi licenses over the next four years. Taxi and for-hire drivers will see their licenses “transfer into a property right” on the order of New York’s valuable taxi medallions.” This reminds me of the analogy Walter E. Williams uses, This is like someone who comes into your yard, rips out your tulips and plants roses, and then gets you to argue the merits of tulips vs. roses, instead of you telling him he had no right to rip out your tulips in the first place.

Canada Pulls The Plug On Delayed Keystone XL Pipeline: Will Instead Send Oil To Asia Via A New Pipeline, by Mark J. Perry, at aie-ideas.org. How many jobs did the President sacrificed at the altar of radical environmentalism. These lost jobs are the unseen consequences that are results of every Government intervention. The benefit of the jobs and wealth that would be created out weighs the risk, not a guarantee, just a minimal risk of a possible environmental problem. The environmentalists are not willing to trade-off any amount of risk, no matter how small, for any amount of economic gain, no matter how big.

Yet Another Leak In The Establishment Ship, by Chris Rossini, at economicpolicyjournal.com. This information age brought about by technological innovation that couldn’t have been imagined 15 years ago,  is starting to over take the status quo propaganda outlets of the Government central planning crowd. News papers and TV news have been in decline for years. Now Hollywood’s influence along with the education monopoly are loosing their hold. As the article says, “this is a positive sign for liberty”.

Freedom Summed Up In One Image, at zerohedge.com. When I saw this sign, I thought it was parody from The Onion. This sign shows how people in positions of power will wield it, to try to control everything you do. They are smarter than you!

Leaving Illinois For Texas, by Mark J. Perry, at aei-ideas.org. Another example of unintended consequences of Government intervention. People are leaving States when the cost of regulation and taxes gets too high. People on the margin leave, and the with the next round of regulations the next group of people on the margin will leave, (as long as there is a lower cost place to escape to).

When Steelers Steal, by Christopher Westley, at mises.org. This is our heavy lifting for the day. Bastiat talked about ‘that which is seen, and that which is not seen’. This article shows the history of the steel industry through the lens of unseen consequences. Government intervention doesn’t happen in a vacuum. The affects of the intervention are like the expanding ripples from a rock being tossed into a pond.

A Typical Day For Southwest Airlines, at economicpolicyjournal.com. This is just Southwest Airlines shown on this time lapse video. What do the skies look like if all planes from all airlines were shown? Well here it is, A Day In The Life Of Air Traffic Over The United States.

45 Perfectly Timed Photographs, at induldged.com. These are outstanding. I saw this at angryid.wordpress.com.

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