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Monday, July 20, 2009

Russ Roberts on healthcare reform

Here's a post by GMU economist Russ Roberts:
According to the Drudge Report, here is the Republicans' chart that describes the new proposed US health care system will work:



It's pretty horrific. Of course neither party wants you to see what the current system looks like. Also horrific. I do think the proposed reform is worse. But let's not pretend that the current system isn't a Kafka-esque bureacracy akin to the picture.
Here's the comment I posted:
It's pretty complicated, isn't it? But not so complicated that it can't be diagrammed. In contrast, coercion-free healthcare--i.e., a healthcare market that would evolve from the choices and actions of 300-plus million Americans under the price system--can't be diagrammed. Not only would it be infinitely more complicated than government healthcare, it would evolve dynamically as supply, demand, and prices changed. Even if one could draw a diagram of coercion-free healthcare at any given moment in time, as soon as the diagram was finished it would be out of date: the coercion-free market would have moved on!

Adjusting the government's plan would require an Act of Congress! :-) :-) In contrast, adjustments in the unhampered, coercion-free market would take place automatically and continuously, as citizens voluntarily modified their behavior in response to changing price signals.

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