Price controls are stupid - end of story
I was surprised to discover that President Obama thinks the Democrats' terribly unpopular, possibly unconstitutional health care plan will somehow be okay with the public if presented in February 2010 as opposed to December 2009. But what really surprised me is that he is so blindly socialist as to think that price controls are a good thing.
Specifically, Obama has proposed controls to prevent health insurers from raising premiums without government approval. While perhaps novel in American health care, let's see what price controls have done in other times and places:
- 1970s US: government controls on the price of fuel causes massive shortages and interminable lines at gas stations
- Present-day Venezuela: price controls on consumer goods and energy cause food shortages and the threat of blackouts
- Present-day New York City: rent controls cause an ongoing housing shortage
So why should we trust our health insurance policies to the hands of government bureaucrats, even if we can delude ourselves into thinking they are competent and have our best interests in mind?
Specifically, Obama has proposed controls to prevent health insurers from raising premiums without government approval. While perhaps novel in American health care, let's see what price controls have done in other times and places:
- 1970s US: government controls on the price of fuel causes massive shortages and interminable lines at gas stations
- Present-day Venezuela: price controls on consumer goods and energy cause food shortages and the threat of blackouts
- Present-day New York City: rent controls cause an ongoing housing shortage
So why should we trust our health insurance policies to the hands of government bureaucrats, even if we can delude ourselves into thinking they are competent and have our best interests in mind?