Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (13438)	2/14/2010 7:25:36 AM
From: skinowski	7 Recommendations Read Replies (1) \| Respond to of 42652

Government and price fixing... let's say, the government passes a law that a slice of Pizza should be priced at 50 cents. The result will be that all pizza joints will go out of business. Otoh, if they decide that a slice must be priced at $5 - no one will be buying. That's the problem with Gov setting prices - absence of feedback. Markets are the best way of price discovery. Government has been - practically speaking - setting prices for healthcare services in the US for decades. That's why you have a situation like now, when only 2% of 4th year medical students intend to spend their careers in primary care. My guess is that half of those 2% will change their minds. Gov price fixing is socialism, and it leads - inevitably - to mispricings and dislocations. The more government, the more socialism - and more problems. And not only in healthcare - just watch our political geniuses trying to cure a credit/debt caused recession through massive borrowing.