MCViewPoint

Opinion from a Libertarian ViewPoint

Obamacare – How Did We Come to This?

Posted by Martin C. Fox on July 16, 2012

There have been many Erie Times editorials extolling the virtues of Obamacare

We need to look at why this regulatory nightmare has come to be.  Control of demand and cartelization of the medical biz began in 1910 with the Flexner Report .

Abraham Flexner, an unemployed former owner of a prep school in Kentucky, and sporting neither a medical degree nor any other advanced degree, was commissioned by the Carnegie Foundation to write a study of American medical education. Flexner’s only qualification for this job was to be the brother of the powerful Dr. Simon Flexner, indeed a physician and head of the Rockefeller Institute for Medical Research. Flexner’s report was virtually written in advance by high officials of the American Medical Association, and its advice was quickly taken by every state in the Union.
The result: every medical school and hospital was subjected to licensing by the state, which would turn the power to appoint licensing boards over to the state AMA. The state was supposed to, and did, put out of business all medical schools that were proprietary and profit-making, that admitted blacks and women, and that did not specialize in orthodox, “allopathic” medicine: particularly homeopaths, who were then a substantial part of the medical profession, and a respectable alternative to orthodox allopathy.
Thus through the Flexner Report, the AMA was able to use government to cartelize the medical profession: to push the supply curve drastically to the left (literally half the medical schools in the country were put out of business by post-Flexner state governments), and thereby to raise medical and hospital prices and doctors’ incomes.

- from Murray Rothbard “Making Economic Sense

*Note the mention of the Rockefeller Institute and Carnegie Foundation. Recurring names of those that seek to profit from control our lives. Think the Fed, UN, Trilateral Commission, the Bilderburgs, The Open Society and Council of Foreign Relations.

Most insurance pays at a fixed rate for a fixed premium. Health care is different, Big Med has been able to charge whatever the public can bear or what can be bargained by the insurer. Attempts at cost controls, increased deductibles and payment caps, are met with wailing and gnashing of teeth by the public and medical industry alike. The AMA/government cartel has driven costs up and ironically doctors out of business.

Can you imagine the AMA/government model applied to auto care?

While we carry car insurance we don’t use it to pay for oil changes or new tires. We pay out-of-pocket. Just like we used to pay the doctor when we needed a stitch. How much would these tasks would cost if your mechanic had to employ a legion of staff to administrate mandatory car maintenance insurance? They would have to determine whether you were not abusing the system by changing your oil too often or not enough (according Halliburton’s recommendations). The mechanics office cadre would have to verify the proper oil type, weight, quantity and filter was used to determine the correct billing codes. The garage would have to charge $300.00 for an otherwise $30.00 job. The paperwork and payment nightmare would drive mechanics to abandon their business, creating a shortage, necessitating rationing. Rationing: as in your car is too old and expensive to repair. Rather like we will now be when Obamacare kicks in. Not up to spec? Call Kevorkian’s junkyard. Auto Car insurance would of course be a tax and everyone will be chipping in. Nothing less than full coverage will do for your “winter car”.

A stitch now requires a mountain of costly paperwork. There is already a doctor shortage. The additional Obamacare paperwork requirements will no doubt drive out even more.

The prospective code of Obamacare laws is already at 13,000 pages. Imagine what that will be in in 10 or 20 years?  Thirteen thousand pages is roughly equal to the federal tax code. The tax code is affectionately referred to as the accountant and tax lawyer full employment act. The progressive, everyone pays their fair share tax code has de-generated to where half the population pays nothing or gets a payment from the government while the rest pay the tab. That snake is probably already built in the Obamacare code waiting to strike. Indeed, waivers have already been issued to unions and other voting blocks.

The icing on the cake. The IRS is being enlarged to hunt down Obamacare scofflaws. Who better to instill fear of non-compliance.

What sort of medical advancement/cost effectiveness would you rather see? The sort exemplified by the rising cost and complexity of the defense and auto industries (heavily regulated and influenced the by government) or the relatively free market and competitive computer industry?

Government “help” and AMA influence in medical regulation is the problem. Get rid of government and biased regulation that stifles innovation and competition.

Be seeing you

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One Response to “Obamacare – How Did We Come to This?”

  1. Ryan said

    After Obamacare and Cap and Trade passes, they’ll be doing more than self-prostate exams to the rest of us. Make sure you have eugonh Vaseline and Preparation H, cuz it’s gonna hurt.

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