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August
16, 2009
Healthcare
Plan Based on Economic Fantasy
by Rep. Ron Paul, MD
As
the healthcare debate rages on, there is one
reality that even the proponents of this hostile
takeover of healthcare by government cannot ignore
-- and that is money. The government simply does
not have the money for a new, expansive, public
healthcare plan. The country is in a deep recession
that will deepen even further with the coming
collapse of the commercial real estate market. The
last thing we need is for government to increase
and expand taxes to pay for another damaging,
wasteful program. Foreigners are becoming less
enthusiastic about buying our debt, and creating
another open-ended welfare program when we cannot
pay for what is already in place, will not help.
Champions of socialized medicine want to tax the
rich, tax businesses that already cannot afford to
provide health plans to employees, and tax people
who don't want to participate in the government's
scheme by buying an approved healthcare plan.
Presumably, all these taxes are to induce
compliance. This is not freedom, nor will it
improve healthcare.
There are limits to how much government can tax
before it kills the host. Even worse, when
government attempts to subsidize prices, it has the
net effect of inflating them instead. The economic
reality is that you cannot distort natural market
pressures without unintended consequences. Market
forces would drive prices down. Government meddling
negates these pressures, adds regulatory compliance
costs and layers of bureaucracy, and in the end,
drives prices up.
The non-partisan CBO estimates that the
healthcare plan will cost almost a trillion dollars
over the next ten years. But government crystal
balls always massively underestimate costs. It is
not hard to imagine the final cost being two or
three times the estimates, even though the
estimates are bad enough.
It is still surreal that in a free country we
are talking only about HOW government should fix
healthcare, rather than WHY government should fix
healthcare. This should be between doctors and
patients. But this has been the discussion since
the 60's and the inception of Medicare and
Medicaid, when government first began intervening
to keep costs down and make sure everyone had
access. The result of Medicaid/Medicare price
controls and regulatory burden has been to drive
more doctors out of the system -- making it more
difficult for the poor and the elderly to receive
quality care! Seemingly, there are no failed
government programs, only underfunded ones. If we
refuse to acknowledge common sense economics, the
prescription will always be the same: more
government.
Make no mistake, government control and
micromanagement of healthcare will hurt, not help
healthcare in this country. However, if for a
moment, we allowed the assumption that it really
would accomplish all they claim, paying for it
would still plunge the country into poverty. This
solves nothing. The government, like any household
struggling with bills to pay, should prioritize its
budget. If the administration is serious about
supporting healthcare without contributing to our
skyrocketing deficits, they should fulfill promises
to reduce our overseas commitments and use some of
those savings to take care of Americans at home
instead of killing foreigners abroad.
The leadership in Washington persists in a
fantasy world of unlimited money to spend on
unlimited programs and wars to garner unlimited
control. But there is a fast-approaching limit to
our ability to borrow, steal, and print.
Acknowledging this reality is not mean-spirited or
cruel. On the contrary, it could be the only thing
that saves us from complete and total economic
meltdown.
Paul
Archive
Dr. Ron Paul is a Republican
member of Congress from Texas.
Because
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