Government begets more government

I enjoyed this post from W.E. Heasley about government involvement in healthcare, on his blog, The Last Embassy.

Here’s a summary:

  • Obamacare is just the next in a long-line of government health care involvement dating back to World War II.
  • Obamacare is meant to solve the problems caused by that previous involvement.
  • Few people understand this. They believe the problems in the health care market are just somehow inherent problems of the health care market that need to be solved with government fixes.

The last bullet point is the kicker. That lack of understanding is what begets more government.  It causes us to vote for candidates who want to pile on more regulation rather than remove it.

The best solution is unwind the real causes of the problem, as Heasley dubs it, Obamacare 1.0, which is the government involvement in health care dating back to World War II.

Rather, we opt for Obamacare 2.0.  Here’s my prediction:  Obamare 2.0 will cause more problems, which may lead to Obamacare 3.0.

I’d rather reverse the trend.  Let’s go to Steve Jobs Care 1.0.

1 thought on “Government begets more government

  1. I might add the following point to the excellent essay: Medicare produces the same result – higher prices for medical care – and it does so through the same mechanism – by reducing the consumer’s incentive to spend less on health care. When medical care is subsidized, consumer’s demand more care – which providers are willing to supply albeit at the inflated prices they learn they can charge as patient’s are indifferent when they are spending (or think they are spending) other people’s money. Medicare provides insurance for seniors at greatly discounted rates – because someone other than the Medicare beneficiary is paying the bulk of the premium. If the Medicare program was structured such that either the premiums or the benefits were based on actuarially sound numbers, beneficiaries would have an incentive to make choice between medical treatments of marginal benefit versus other goods or services. With our current system, there is little incentive to forgo worthless medical services. But then again, if the REAL reason the liberals enacted the Medicare program was to provide an actuarially sound system – rather than to buy votes – it would have been superfluous as this was already being provided by the private insurance industry.


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