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Trickle-down economics is "wrong" according to the IMF

  • Offline MalabarJag
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#23
06-23-2015, 10:12 AM

Quote:LOL, when was the last time you read a book on economics.  I mean seriously, Econ101 completely shuts down your arguement.  You honestly think that the ACA (Obamacare) causes the consolidation?  Talk about a spurious correlation...  X happened.  Then A happened.  X caused A.  That's not always how it works...

 

We had a free market solution prior to the ACA...  The insurance companies were making up all the rules.  How'd that work out for us?  
 

Your comment about cause and effect is spot on. The ACA could be the immediate cause of consolidation if the insurance companies that went big into the exchanges suffered a loss, and made them ripe for takeover. But just because one happened after the other is not proof, or even a good indication of cause and effect. In any case, AFAIK the ACA didn't force insurance companies to sign up for the exchange business.


 

But health insurance has not been free market for a very long time. The fact that business got tax breaks for employee insurance while individuals didn't (federal regulations) distorts the market. Medicare and the pricing and other regulations that accompany it also distort the whole healthcare market. So do federal mandates that a hospital must accept every patient who shows up in the emergency room.




                                                                          

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Trickle-down economics is "wrong" according to the IMF - by MalabarJag - 06-23-2015, 10:12 AM



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