Saturday, June 7, 2014

On the Idiotic Assertion that Competition Won't Bring Down the Cost of Healthcare Because Healthcare is a Necessity

This is an easy one to refute, folks. All that you have to do is compare healthcare spending as percentage of GDP prior to Medicare and Medicaid with that of what it's been since these programs. And here's the evidence. For the first 180 years or so of the republic, healthcare spending as a percentage of GDP was consistently in the low to middle single-digits, and it wasn't until government got massively involved (in the 1960s) that the numbers started skyrocketing. And the reasons for this are obvious. Whenever government gets into the business of subsiding something, the cost of that something invariably escalates. That, and the third-party payment system acts as a disincentive for folks to shop around and be better consumers, take better care of themselves, etc.. I mean, I know that the phrase, "getting rid of the middle man", has gotten a little clicheish over the years but in this instance I gotta go along with it.

1 comment:

Jerry Critter said...

Maybe part of the increase in percent of GDP spent on healthcare is because a lot more people are getting healthcare, having health problems tended to, and living longer because of Medicare and Medicaid, healthcare they could not afford before?