By Matt Holdridge
From Dan McCarthy at the American Conservative:
Whether it’s called Obamacare or Romneycare, and whether it’s right-wing or left-wing, the further cartelization of the healthcare system is a very bad idea. In exchange for extending coverage to high-risk individuals, the insurance industry is promised guaranteed profits from a consumer base — that is, people like you and me — that is legally compelled to purchase its product. As with any massively centralized compulsory system, no one can no how it will all work out: perhaps the insurance companies really will lose money in the end. But as we move further away from a free market, the usual kinds of competitive pressures that keep costs down and quality high will be further attenuated; the only sure losers here are the consumers.
Although it doesn’t matter whether a bad idea is right-wing or left-wing, it might as well be pointed out that Obamacare has a great deal in common not only with what Mitt Romney did in Massachusetts but also with what George W. Bush wanted to do with the Social Security system.
…In short, it was a choice between an old-fashioned wealth transfer and a newfangled forced-savings scheme, one that would have involved the same cartelization risks as Obamacare does.
Read the rest here.