Ever since the US government began to sink its claws into the medical industry a good 50 or so years ago, attempts at reducing costs have failed again and again. This is par for the course whenever government invades an industry.
Trying to reform this Frankenstein with either Obamacare, or Trumpcare, will solve nothing.
The problem is structural. Tinkering with this or that will just waste more time.
RELATED: “How Government Regulations Made Healthcare So Expensive” by Mike Holly
In order for real change to happen, a fundamental change has to occur in the thinking about what health care actually is. It’s not what Americans have been conditioned to believe.
Peter Klein has put it into plain language in the following short video. I’ve also transcribed key sections below:
From a fundamental economics point of view, what is healthcare exactly? One of the things that’s particularly frustrating for me as an economist is this notion that “healthcare” is some kind of a unique good or service, that everybody needs, everybody wants, but cannot be provided by the market the way the market provides shoes, or tomatoes, or automobiles, or any other good.
This post was published at Ludwig von Mises Institute on May 4, 2017.
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