Tuesday, August 11, 2009

On the Road to Erineus

I am unsure where all of this is leading. Certainly the federal control of health care stems from one thing: their unfunded liability to the Medicare commitment. It is over 37 trillion dollars right now if they cut it dead. It is strange to see an organization that has failed in its initial project respond by trying to absorb the rest of the medical system but I suppose the logic is they can control the part if it is within the whole. Moreover they will not have to admit failure. I have not heard a single concern over the unfunded liability; only the uninsured, or small business burden or the rising costs of health care. This is the reason: http://www.usdebtclock.org/. So, to hide their previous failure-- ill conceived, poorly administered and gigantic--they will take over the rest of the medical system.
What will be created is any one's guess. I suppose it will be a distorted cobbled monster with the usual disastrous unintended consequences. Certainly the main activity will be contraction: To fix the price to the available budget. That will have no influence on the cost however and the distortions will follow. Resources will be reallocated to the politically connected and the symbolically secure. The medical profession, now a utilitarian organ of a cost and graft obsessed power, will be destroyed. The overall objective, the Medicare obligation, will be achieved economically if not morally.
Then we can turn to the next failed promise: Social Security.

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