"Obamacare's" Fatal Flaw
August 4, 2010 8:42pm CST
Yep, the health insurance bill has one fatal flaw that will pretty much negate any of the savings that are have idealized in it. No, this isn't so much politics as the basic laws of mathematics and economics where the rules are set pretty much in stone. You know where 1 + 1 = 2 and the law of supply and demand. It is also the ingredient that other countries such as Japan, Germany, Australia, England, and yes, even Canada has. If you ever wondered why Canadian drugs are so cheap, you are about to discover the answer. Price Controls. Medicaid and Medicare have them to some extent. However, if you look at the complaints of doctors and the proposed cuts, you begin to understand why many doctors are dropping out of the system. I will let an economist explain how they actually work. http://www.econlib.org/library/Enc/PriceControls.html Without these in place there is no way that the President can effectively lower the costs of health care. That is even if everyone pays into the system.
1 Jan 11
But here in England an equivalent operation costs a fraction of what it costs under your private health care system. The real problem with your health care system is that it is linked to insurance companies. Secondly it is foolish and dishonest to suppose that the vague 'laws' of economics are equivalent to the hard and fast rules of mathematics. Ask 10 mathematicians a question and you get accord ask 10 economists and you will get discord all the best urban
• United States
1 Jan 11
That's because the government is dictating how much a procedure costs. The doctors/ hospitals aren't allowed to charge the government anymore than what is determined as the cost for the procedure. AKA "price controls." There is none in the Health care bill. That's the main reason why Obamacare is failing dramatically. Straight mathematics still put the entire bill in the hole. Not the economists, the mathematicians who can add and subtract have figured out that the math that is being portrayed by the President doesn't add up. I think this President needs a major review course in Basic math and Economics 101.