Wednesday, November 20, 2013

Does Rand Paul Even Know What Is Wrong with Obamacare?

The major problem with Obamacare is that it is a centrally planed healthcare program that distorts the entire healthcare sector. And, it overcharges youth to pay for the care of the elderly. Further, it puts in the hands of government decisions as to which treatments will be allowed and which will not---opening up the potential for the politicization of the treatment process with those politically connected getting their treatments approved, while treatments of the not-politically connected falling by the way side.

To the degree that price controls are part of Obamacare, it will lead to shortages and ultimately a decline in life expectancy in the US.

Rand Paul recently appeared on CNN and didn't come close to pointing out any of these issues.

Mediaite reports:
On Tuesday evening, Kentucky Senator Rand Paul appeared on CNN’s Out Front with Erin Burnett and reluctantly admitted that there may be some good news about Obamacare coming out of his home state.

Burnett said she decided to report the “good news” on Obamacare Tuesday night “because I know that you’ve heard the bad news.” In her interview with Paul she highlighted a new report that shows 41% of Kentuckians who have signed up under the new law are under 35 years old, which is above the administration’s threshold for success of 40%. “That’s pretty impressive,” she said. “Are you going to say Kentucky is a success story for Obamacare?”

Initially, Paul rejected the suggestion, focusing instead of the people in his state who have “had their insurance canceled” under Obamacare. “The number being canceled dwarfs the number actually signing up,” he said. “So no, if that’s a success, I hesitate to see a failure.”

Burnett responded by saying that the new plans being offered to those people may very well be “better” than the ones that were canceled. “At least I have to get you on the record,” she pressed. “If young people are signing up in Kentucky, and you’re getting the math right there, that opens the door to Obamacare succeeding, right? I mean, you gotta acknowledge that.”

“Maybe,” Paul answered, going as far as he intended to go in agreeing with Burnett’s premise. He then returned to his original argument about people’s plans being canceled. When Burnett again suggested that many of those people will eventually sign up for new health care plans, Paul once again responded, “Maybe… They’re being canceled because they have something less expensive and President Obama wants them to buy one of his four plans, which are more expensive.”

Paul even admitted that “maybe” the new plans people will enroll in under the Affordable Care Act will have “better care” but reiterated that he believed they would be “more expensive” and “may not be” what people want.


  1. Obamacare does not in general "put in the hands of government decisions as to which treatments will be allowed and which will not." For Medicare and Medicaid, the govt is the insurance company so like any insurance company it will decide what is covered by their insurance.

    Price controls in health care do not lead to shortages. Price controls will cause suppliers of goods and services to dictate more demand. In health care, the supplier dictates demand. Cap how much they can charge for radiation therapy and they prescribe more radiation therapy.

    1. Great explanation JW. So what you are saying is that they may be losing money on each treatment but they are making it up on volume.

    2. So Jerry, you say "Cap how much they can charge for radiation therapy and they prescribe more radiation therapy."

      Are there unlimited resources or radiation therapy (doctors, nurses, technicians, equipment?) If so, there will not be any shortages. But if demand for the service is greater than its availability at that price point, shortages will occur. Also, if the the government imposed price for radiation therapy is less that the cost for the service, providers will no longer provide the service, which will also result in shortages.

    3. I wonder if Rand Paul knows that health insurance does not equal health care.

    4. JW,

      Do you have any examples where price controls didn't result in shortages.

      If government price fixing is so successful why limit it to healthcare? Why not let the government determine a "fair" price for food, clothing, automobiles, housing, iPhones, iPods, iPads, XBoxes, PS3s, etc, etc, etc?

    5. Never learned why monopolies are bad, did you, Jerry?

    6. lol....that's exactly what genius is saying.

      It's amazing how many people think they know exactly where the supply & demand curve intersect on any given product/service as well as also being able to continually adjust for changes to it on a macro basis.

      "In health care, the supplier dictates demand."

      That's some deep stuff right reality necessary. It's like a science fiction novel, cool and techie sounding even if it doesn't apply to reality.

      Next time I have a healthcare need, I'll just go to the doctor as say, "Can you adjust my need to demand some healthcare for me so I don't have to see anyone else? No, no treatment, just adjustment my demand please." LMAO!

      Like a blind squirrel, even JW finds a nut of logic now and then, but most of the time his comments are so outlandish that I laugh out loud reading them.

      I'm so glad RW didn't ban him, Jerry provides much needed comic relief.

    7. Jerry, you wrote that "Price controls will cause suppliers of goods and services to dictate more demand."

      So, why would an adult believe that it's a good idea for suppliers to be dictators?

      Maybe now you'll change your supply side theory, according to which "the supplier dictates demand" into a demand side theory according to which we the people dictate demand through the political process.

    8. "Cap how much they can charge for radiation therapy and they prescribe more radiation therapy."

      I know you're just a troll but what the hell.....

      In the whole history of the world price controls have NEVER worked. Venezuela is doing that right now and of course it's been a disaster.

  2. Robert, watch his Daily Show episode explaining the supply/demand aspect of the health care law. Ron Paul likely understands economics better than Rand, but Ron isn't 1/10 as good as Rand at explaining basic economics.

    1. Well Rand certainly FAILED explaining supply and demand in that interview.

    2. I prefer Thomas Woods myself. He's infinitely better than both at explaining it.

  3. "Price controls will cause suppliers of goods and services to dictate more demand"

    If the price control implemented is lower than the market price for the good thus causing losses for the supplier of said good, then why would the supplier continue to continue supplying it, thus suffering more losses?

    Assuming demand stays constant, and if the suppliers quite rationally decide not to suffer losses because of the price control and cease supplying that good, then shortages will follow like night follows day.

  4. how many bitcoins are they paying you to troll JW?

    1. Are you kidding, they're paying him in VEFs, BTC is too expensive for the time being. Besides, Venezuala is more to his liking anyway.

      Jerry, are you going to respond to any of the critiques or are you sticking to your drive by profile? If you do elect to respond, please provide your explanation for the decades long physician shortage in Great Britain.