Friday, January 15, 2010

Democrats, Unions Reach Deal on Health Tax - WSJ.com

Democrats, Unions Reach Deal on Health Tax - WSJ.com

It's all about cost shifting. What has brought us to this problem today with affordability can be laid directly at cost shifting and mandates.

Now both are increasing. Again, say goodbye to jobs as the economy changes the economic utility factors to lower the price and increase the use of health services.

As the demand for the services goes up, the supply demand equation naturally will either require higher salaries to the needed health workers or a decrease in the level of education and skill. Likely both will occur at the same time. We'll have fewer doctors wanting to enter an increasingly government managed system; and, those who provide care will increasingly have less education.

As always, there's no free lunch. But now the government will be closing off the options and forcing everyone into the same overpriced canteen. It may seem cheaper; but, the quality will probably be the sacrificial lamb - along with a lot of other more productive jobs that the economy will no longer be able to support as it shifts additional (ever more costly) resources to supply more and more healthcare.

The healthcare cost isn't being paid willingly in a normal supply-demand/economic utility equation; it is being force-fed by government and the power of taxation!

Enjoy a lower standard of living even if more healthcare!

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