Healthcare: Price Controls and Shortages
11.23.09
As the final healthcare debate ramps up and certain moderate Democrats (and Joe Lieberman) become the last best hope for a bill that is something slightly less than a complete disaster, it is worth noting that underlying the scrambled mess that reform has become are some basic economic fallacies. The primary underlying problem is the purported view that rising healthcare costs have something to do with either the greed of the healthcare industry or some failure in the market. In this view, increased prices are a sign of moral failure rather than a signal that more economic resources are needed in the healthcare industry.
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