Aug 21, 2009

The Quispe Approach

No me canso de decirlo, la tendencia natural de los políticos en todas partes es el populismo. Pero yo honestamente preferiría que por lo menos sean más sinceros y te digan de frente que su solución es nivelar para abajo:

Medical care doesn't grow on trees. It must be produced by human and physical capital, and those resources are limited. Therefore, if demand for health care services increases -- which is Obama's point in extending health insurance -- prices must go up. But somehow Obama also promises, "I won't sign a bill that doesn't reduce health care inflation."

This is magical thinking. Obama, talented as he is, can't repeal the laws of supply and demand. Costs are real. If they are incurred, someone has to pay them. But as economist Thomas Sowell points out, politicians can control costs -- by refusing to pay for the services.

It's called rationing.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.