Source of Obamacare Woes:
Economic Ignorance
It seems that every day new revelations emerge regarding the Affordable Care Act (ACA). Supporters of the ACA are now starting to distance themselves from it as we hear reports of insurance companies dropping subscribers, households subscribing on the exchanges in unexpectedly low numbers and insurance costs higher than promised. Even the liberal New York Times ran an op-ed piece entitled “Obamacare, Failing Ahead of Schedule.” Earlier this week President Obama vowed that, “I’ve run my last political campaign, but I’ve got one more campaign in me and that’s making sure that this [APA] law works.” The goal of the ACA, according to the White House’s website, is that it puts into place “comprehensive reforms that improve access to affordable health coverage for everyone and protect consumers from abusive insurance company practices.”
Why this apparent disconnect between the law’s intentions and how it is actually playing out in recent months? Let’s take a step back and look at some basic indisputable facts. Any introductory economics textbook will tell you that it is a fact of life that resources are limited. There are only so many physicians, clinics, MRI machines, and other health care assets available at any given time. Genesis 3:17-19 indicates that scarcity is a condition of our fallen humanity. No government can legislate it away any more than King Canute could order the tide to stop coming on the shores of England. The only two ways to mitigate the scarcity (but not eliminate it) are to increase the supply of these resources over a period of time or to use existing health care resources more efficiently.
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