How the Free Market Can Cure Health Care

There are many myths that proponents of socialized medicine commonly use to advance their cause. One thing that is true, however, is that rising costs are a major flaw in the current system. In due time, this problem could well constitute a "crisis." There are many different ways to combat rising costs: rationing and price controls, increasing subsidies to health care (and thus further masking costs), or market competition. Rationing has its obvious consequences, and price controls remove the profit motive, thus stifling innovation -- something the current system tends to specialize in. Increasing subsidies to health care cannot lower the cost of health care any more than a student changing the D on a test to a B would change his grade. Subsidies can only give the appearance of lower costs, but they have to be counterbalanced with the tax increases necessary to pay for them. In addition, the government tends to under-project its expenses when it...(Read Full Article)

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