9_eU4oMpoNP wrote:John,
You have repeatedly stated that the ACA will fail, citing Nixon price controls as an example. Yet, I cannot find support for your proposition that the ACA contains price controls. On what do you base your opinion? If it's Medicare payment schedules, similar schedules have been in place for decades and are not different in substance from the "negotiated" rates that private insurance companies use. It seems like you latched onto a catch phrase and ran with it, without examining whether the catch phrase is true or not.
I'm no expert on the details of Obamacare, but from the day it was
proposed in 2009, I heard story after story about all the different
ways that prices were going to be controlled. Insurance companies are
limited in profits, hospitals and doctors were restricted in charges,
and so forth. Some of the loudest complainers are labor unions who
are being taxed because they offer "Cadillac" plans. Whether done by
taxes or restricting prices, these are all price controls, as in the
case of Nixon's wage-price controls.
For those of you who are "liberal" and "progressive," you're the ones
who owe the world an explanation, not me.
If you're "liberal" or "progressive," then you have to believe that
Nixon's wage-price controls should have worked. They were
enthusiastically backed by labor unions and other liberals, they were
fully backed by the Nixon administration, and almost everyone thought
they'd work to reduce inflation from 2-3% down to 1% or so.
Instead, they were a disaster, and inflation rocketed to 10%.
If you're liberal or progressive, then you owe me and other people why
that happened. This is a simple non-ideological question.
Wage-price controls were a typical liberal program, attempting to
control the markets through government regulation, and it was a
disaster. Give me and others an explanation of why this typical
liberal program was a disaster.
When you go past your ideology and understand that you have no
explanation why Nixon's wage-price controls were a catastrophe, then
you'll also understand why Obamacare is a catastrophe.
In simple economic terms:
-- If you want health care prices to go down, then you need to
increase the supply of medical services -- doctors, hospitals,
devices, insurance companies, and so forth.
-- The only way to increase the supply is to allow prices to find
their own levels, which means no price controls.
-- Instead, Obamacare seeks to control prices, which is going to
DECREASE the supply of medical services.
-- This means that the prices of medical services are going to
explode.
That's exactly what's happening today.
Once again, forget your ideology for a moment, and go back and check
out what happened under Nixon's wage-price controls, and you'll see
the same thing happening today.
One bit of irony: Labor unions were the loudest advocates of
wage-price controls, and they were the loudest complainers when the
controls failed. Today, labor unions were the loudest advocates of
Obamacare, and today they're the loudest complainers. Go figure.