Saturday, November 24, 2012

Coming Soon to a Doctor's Office Near You

In Chapter 17 of my book, Foundations of Economics: A Christian View, I discuss the economics and ethics of voluntary exchange and regulation. Following the analysis of Murray Rothbard, I note that government regulation of business amounts to government privilege granted to certain firms who are already operating according to the dictates laid down by the state. Often such regulations are written with important input by established business firms.

As I explain in my book, such regulation "benefits the seller receiving the special privilege. Whoever has the legal right to produce is protected from potential competition. Potential competitors are barred from entering the regulated market, reducing the number of substitutes for the good made by the privileged seller."

We are on the cusp of seeing how this economic principle will play itself out in the health care industry following the implementation of Obamacare. For those who still hope that increased centralized health care will make the world a better place, I urge you to take a listen to this address by Dr. Elaina George at the Annual Meeting of the Association of American Physicians & Surgeons.

Thanks to EconomicPolicyJournal for alerting me to the perspective from a doctor who understands how increased intervention via Obamacare will result in a more centralized industry, more government control, higher costs, and an increased wedge between physicians and their patients.

No comments:

Post a Comment