Why Health Costs Are Still Rising


In support of economic theory, the above data shows that healthcare costs rise when others pay. In contrast, when providers have to compete for the consumer’s own resources, their service gets cheaper and better.

As an analogy, the same thing would happen if we had socialized “food insurance”.

I have to caution that interpreting empirical data is difficult. There is always the possibility of some hidden factor. That said, I have yet to see some solid empirical evidence of lower costs and improved quality as the monopolistic footprint of government increases in any industry, especially in the long-term. Instead, it appears that as an industry becomes more controlled and politicized, efforts get diverted to gaining control of the political process and away from improving the production of goods and services.

Maybe we should consider some simple and drastic steps towards a healthcare solution (audio).



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