Monday, June 29, 2009

The marketplace, of course, doesn’t conceive of separate spheres, neatly carved up by statists. The laws of supply and demand don’t answer to Barry the Bolshevik. Private practitioners and providers, in extant and nascent markets for medicine, must know that if The Man and his Machine bring in a “public option,” offering coverage to whomever wants it, the marketplace will change.

Ever wonder why the president is so confident that the “public option” will be cheaper? Here’s why: a “public plan” is a subsidized plan in which prices are artificially fixed below market level. As sure as night follows day, overconsumption and shortages always ensue.

Because it enjoys a monopoly over force, the government is immune to bankruptcy. It covers its shortfalls by direct and indirect theft: by taxing the people, or flooding the country’s financial arteries with toxic fiat currency.

Other than to indenture doctors, the overall effect of forcing professionals to provide healthcare below market prices will be to decrease the supply and quality of providers and products.
From Taki.

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