Thursday, May 27, 2010

Does Congress display ignorance of basic economics?

Basic economics teaches us that price controls will always result in less supply of the affected good or service. Artificially-lowered prices always create a situation where government commands multitudes of people to do something that they would only do if forced, which is sell their labor or goods for less than they are worth. This results in the coercive power of the government being used against more and more citizens to get them to do what they do not want to do, and for less and less reward. Of course, people are never coerced without consequences. What inevitably happens is that those made to work for less pay eventually decide to just work less, and to work less efficiently. In other words they rebel. They either “play the game” by shuffling around doing as little as possible, or they leave the business. Either way, if this Pelosi-Obama bill becomes law, we will see a reduction in the number of health care workers and their efficiency and quality of their work. Many of the most brilliant would-be doctors will not even consider medicine and will look for other careers and lives that are not controlled by gray bureaucrats intent on satisfying the pressure groups they are indebted to for re-election. Not only will health care workers ultimately have their salaries determined by a corrupt political process under the Pelosi –Obama plan, but health care consumers will have their care rationed by the same corrupt political process we witness every day in the news about congressional shenanigans. The end result will be a very dispirited health care industry, and the standard of care provided to Americans will regress decades. Americans will get less health care - and at a high price in personal freedom

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