Politics Foreign Affairs Culture Fellows Program

Obamacare in Action

You can see it already in Massachusetts, courtesy of Mitt Romney. The resemblance between the healthcare scheme Romney designed and the one coming courtesy of Obama should put the lie to the idea that the two parties have strong philosophical differences in this area. As in banking and so many other fields, what determines policy […]

You can see it already in Massachusetts, courtesy of Mitt Romney.

The resemblance between the healthcare scheme Romney designed and the one coming courtesy of Obama should put the lie to the idea that the two parties have strong philosophical differences in this area. As in banking and so many other fields, what determines policy are not ideas but interests — in this case, the interests of politicians who want to buy off voters with subsidized services and the financial interests of healthcare providers, who have plenty of lobbying clout no matter which party is in power. Individuals, government, and industry all behave worse in a semi-socialized system: individuals consume more and save less; government refuses to make unpopular cuts and instead allows shortages to develop and services to degrade; and industry, once forced to become more political for defensive reasons, grows intent upon using politics to guarantee profits. The upshot of it all is systemic failure, which becomes a pretext for more government intervention, which leads to yet more crises. And the beat goes on…

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