One of the many odious aspects of the president's health-care propsal is the reintroduction of federal price controls. This is a recipe for shortages and black markets. Do you remember the 1970s? President Nixon imposed price controls on such goods as oil. The result? Those surreal pictures of long lines at gas stations and "no gas" signs suggesting that America had decided to become Upper Volta for a decade.

Not having gas, as anyone who has run past empty can attest, really bites. You know what's worse? Long lines and "no care" signs at the hospital. That will be the likely result should the president's proposed Health Insurance Rate Authority become a reality. Queues and rationing are the reality in France, Britain, Canada, and, perhaps soon, in the United States, too.

When governments control prices, several outcomes are possible: 1. Industry captures the regulatory body and colludes to keep prices artificially high and/or exclude competition (The Interstate Commerce Commission, for a time, was more or less an example of this). 2. The government sticks it to industry (Hear the Left's cries of "Big Pharma," and the use of "health-insurance company" as if it were a euphemism for Hitler, and you get the sense that the proposed price controls will be vindictive in nature.), and shortages ensue because of the removal of incentives to provide the particular service. To mandate that the price of a product fall below its cost is a sure-fire way to create a shortage because the profit motive has been removed. Nobody goes into business to lose money. The resultant shortage of milk and rice from Hugo Chavez's price controls is an example of this principle in action. Ironically, one of the effects of price controls, because they induce shortages, is to dramatically inflate the price of products on the black market because of their short supply in the state-regulated market. Neither artificially propped-up prices nor artificially low prices is desirous.

"Both the House and Senate bills include significant reforms to make insurance fair, accessible, and affordable to all people, regardless of pre-existing conditions," reads the president's proposal. "One essential policy is 'rate review' meaning that health insurers must submit their proposed premium increases to the State authority or Secretary for review. The President's Proposal strengthens this policy by ensuring that, if a rate increase is unreasonable and unjustified, health insurers must lower premiums, provide rebates, or take other actions to make premiums affordable. A new Health Insurance Rate Authority will be created to provide needed oversight at the Federal level and help States determine how rate review will be enforced and monitor insurance market behavior."

In other words the state, rather than the market, will determine price.

What rates are "reasonable" and "justified"? In the free market, buyers and sellers determine whether a price is "justified" and "reasonable." A transaction represents the voluntary exchange between two parties. If the seller's price is too high, buyers will go elsewhere and the market will compel the seller to lower his price to find buyers. If the buyer's offer is to small, the market will compel the buyer to raise his offer to find a seller.

The free market, in this limited sense, is self-regulating. It needs no external arbiter of wisemen to determine whether its transactions are unreasonable and unjustifiable. Everyday, in malls, box stores, and mom & pop outfits, the market casts its judgment on the fairness of prices. The free market is democratic. The market--buyers and sellers--determines price.

In contrast, regulatory boards such as the Health Insurance Rate Authority are totalitarian. Rather than a market of 300 million buyers and sellers determining price, a handful of wisemen dictate. Transactions aren't voluntary. They are determined from on high. The governed don't give their consent to such governing bodies. But that doesn't stop these unelected "experts" from governing.

When drivers ran out of gas four decades ago, the consequences included long walks home. When patients run out of medical treatments, the consequences will include death.

Those who don't remember the 1970s are condemned to repeat them.

When patients run out of medical treatments, the consequences will include death.

I know you have no respect for the English language, formal logic, or empirical data, i.e. demonstrable evidence, but patients already run out of medical treatments. In fact, thousands die every year from preventable deaths because they have NO health care whatsoever. Additionally, nearly 60% of the 1.5 million bankruptcies per year are from medical debt.

Queues and rationing are the reality in France, Britain, Canada, and, perhaps soon, in the United States, too.

Perhaps soon? Queues and rationing happen right now. Again, it is an empirical fact that thousands die each year due to lack of health care in the United States. The burden of proof is on you back up the claim that it isn't happening right now.

What rates are "reasonable" and "justified"? In the free market, buyers and sellers determine whether a price is "justified" and "reasonable." A transaction represents the voluntary exchange between two parties. If the seller's price is too high, buyers will go elsewhere and the market will compel the seller to lower his price to find buyers. If the buyer's offer is to small, the market will compel the buyer to raise his offer to find a seller.

For you to claim that health is a commodity to be traded is beyond reproach, and the assertion will be rightfully scorned by successive generations. You have no justification for this other than your selfish ethical egoism. You're lucky your god doesn't exist.

Health care is a requisite modal right to life, liberty, and the pursuit of happiness. Would anyone like to dispute the notion? If health is not requisite to life, liberty, and the pursuit of happiness could someone explain this to me?

Transactions aren't voluntary. They are determined from on high.

So the family of a cancer victim facing medical debt in the thousands of dollars can voluntarily avoid the transaction and debt?

The governed don't give their consent to such governing bodies. But that doesn't stop these unelected "experts" from governing.

Are you speaking of the management and boards of AHIP and PHRMA members?

PMA, in a few paragraphs you have managed to express every single fallacy I learned about in my freshman college "critical thinking" class. The burden of proof is on YOU my friend, for it is your side who wishes to change what currently exists.

"Health care is a requisite modal right to life, liberty, and the pursuit of happiness. Would anyone like to dispute the notion? If health is not requisite to life, liberty, and the pursuit of happiness could someone explain this to me?"

Let me attempt it. Notice in your first sentence you say "health care", but then you follow with just "health", you are playing with words. Many things are precursors to life, liberty, and the pursuit of happiness. The role of our government is not to give you those precursors, but rather to not take them from you or otherwise infringe upon your right to obtain them.

"In fact, thousands die every year from preventable deaths because they have NO health care whatsoever."

This statement is simply a lie because there is nobody in this country who does not have access to healthcare in some way, shape or form. That includes people who are NOT citizens of the United States.

People do die. That's a fact of life. But if they do, it happens either under the watch of some medical care givers or from self neglect of some sort.

What Dan has written here sums up the issue very comprehensively and nicely with facts and a good an@logy. The reality that someone can't understand logic and digest those facts as presented is a completely different story.

You had me at empirical.

You continue to crack me up Fong.

PMA:

"For you to claim that health is a commodity to be traded is beyond reproach, and the assertion will be rightfully scorned by successive generations."

Please support this claim.

"Health care is a requisite modal right to life,"

Please support this claim.

Also, Bill adroitly pointed out an equivocation on your part. Please address that.

"In fact, thousands die every year from preventable deaths because they have NO health care whatsoever."

Apparently, ASDF doesn't buy this claim either. Please support it with a link to some actual data.

PMA, you are a patriot.

Dan, now I know why you wrote a whole book called, "Intellectual Morons." I suppose it is folly to use a logic on a person when he doesn't agree on the same premises.

This blog is corrupt.

Do you get kickbacks from the insurance industry, Dan?

PMA, you are a patriot.

Dan, now I know why you wrote a whole book called, "Intellectual Morons." I suppose it is folly to use a logic on a person when he doesn't agree on the same premises.

This blog is corrupt.

Do you get kickbacks from the insurance industry, Dan?

Bill wrote,

The burden of proof is on YOU my friend, for it is your side who wishes to change what currently exists.

Absolutely, 100% wrong. The current claim, your claim, is that health care in America is the best in the world. Where is your proof of this? Dan's claim is that queues and rationing do not occur in the U.S. Where is Dan's proof of this?

Let me attempt it. Notice in your first sentence you say "health care", but then you follow with just "health", you are playing with words.

You must be a lawyer. Could you explain to me how one who is sick can maintain good health without health care?

The role of our government is not to give you those precursors, but rather to not take them from you or otherwise infringe upon your right to obtain them.

I laughed out loud when I read this. You must be one of those little peasants fixated on negative liberties because you never learned to share your toys, or are perhaps stultified in the ana1 stage of psychological development, or may read the Satanic Bible daily. You could, alternatively, be incapable of feeling empathy and compassion for other humans, i.e. a sociopath. So, great corporate peon, what "precursors" (lol!) did you procure for yourself when you were an infant? Did you obtain food, shelter, and clothing as a 4 year old? Perhaps we could go back to the good old days of child wage slavery? Oh, did you pay for your elementary and secondary education? How about those roads you use, the police and fire department, the military that protects you?

asdf wrote,

This statement is simply a lie because there is nobody in this country who does not have access to healthcare in some way, shape or form. That includes people who are NOT citizens of the United States.

Absolutely 100% wrong. There are innumerable documented cases of children dying while waiting for approval from for-profit insurers. Do some research; the internet is at your fingertips, my friend.

Herman wrote,

Please support this claim.

I don't have time to go into deontological ethics vs. act-consequentialism, nor do I have time to offer an act-consequentialist justification of universal single-payer health care. It is, however, an irrefutable fact that other industrialized nations have UNIVERSAL coverage with LOWER costs of care and by a majority of metrics BETTER health outcomes. At a later time I hope to write an essay about health care as a requisite modal right and not a commodity, and I will be sure to proudly link to it during another fight.

James, thanks for the kind words. Right back at you.

Herman wrote,

"In fact, thousands die every year from preventable deaths because they have NO health care whatsoever."

Here's the famous one. There are many others.

Health Insurance and Mortality in US Adults

by Andrew P. Wilper, MD, MPH, Steffie Woolhandler, MD, MPH, Karen E. Lasser, MD, MPH, Danny McCormick, MD, MPH, David H. Bor, MD,
and David U. Himmelstein, MD

http://pnhp.org/excessdeaths/health-insurance-and-mortality-in-US-adults.pdf

Hm. Interesting, PMA.

What do you say to this, ASDF? Still PMA's claim is a lie?

Hey PMA, thanks for the personal attack, calling me a corporate peon, a sociopath, and a satanist was classy. I'm actually a card carrying LIUNA member (yes that is a union) and I have a great capacity for empathy towards my fellow human beings, and fish and birds and trees....

And by the way, the federal government did not feed me, clothe me, or shelter me when I was four. My mommy and daddy did that all by themselves. You may find that hard to believe, but it is true- some people actually take responsibility for their own families well-being.

Stay classy PMA!