The Liberty Guardian
October 31st, 2014
March 30, 2010 By: M.J. Harris Category: Liberty Blog

by Ron Paul

With passage of last week’s bill, the American people are now the unhappy recipients of Washington’s disastrous prescription for healthcare “reform.” Congressional leaders relied on highly dubious budget predictions, faulty market assumptions, and outright fantasy to convince a slim majority that this major expansion of government somehow will reduce federal spending. This legislation is just the next step towards universal, single payer healthcare, which many see as a human right. Of course, this “right” must be produced by the labor of other people, meaning theft and coercion by government is necessary to produce and distribute it.

Those who understand Austrian economic theory know that this new model of healthcare will cause major problems down the road, as it has in every nation that ignores economic realities. The more government involves itself in medicine, the worse healthcare will get: quality of care will diminish as the system struggles to contain rising costs, while shortages and long waiting times for treatment will become more and more commonplace.

Consider what would happen if car insurance worked the way health insurance does. What if it was determined that gasoline was a right, and should be covered by your car insurance policy? Perhaps every gas station would have to hire a small army of bureaucrats to file reimbursement claims to insurance companies for every tank of gas sold! What would that kind of system do to the costs of running a gas station? How would that affect the prices of both gasoline and car insurance? Yet this is exactly the type of system Congress is now expanding in health insurance. In a free market system, health insurance would serve as true insurance against serious injuries or illness, not as a convoluted system of third party payments for routine doctor visits and every minor illness.

While proponents of this reform continue to defy all logic and reason by claiming it will save money, I worry about cataclysmic economic events. Already investors are more reluctant to buy US Treasuries, fearing that the healthcare bill, along with other spending, will cause government debt to explode to default levels. I had the opportunity last week to address my concerns with both Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke, especially about the potential for the coming serious inflation. I am not optimistic that these important decision makers truly understand what is coming, why it is coming, and how best to deal with it.

The Federal Reserve finds itself in an unprecedented and unenviable position. To keep up with government spending and corporate irresponsibility, it has increased the monetary base by nearly $1.5 trillion since September of 2008. Excess bank reserves remain at historically high levels, and the Fed’s balance sheet has ballooned to over $2 trillion. If the Fed pulls this excess liquidity out of the system, it risks collapsing banks that rely on the newly created money. However, if the Fed fails to pull this excess liquidity out of the system we risk tipping into hyperinflation. This is where central banking inevitably has led us.

The idea that a handful of brilliant minds can somehow steer an economy is fatal to economic growth and stability. The Soviet Union’s economy failed because of its central economic planning, and the U.S. economy will suffer the same fate if we continue down the path toward more centralized control. We need to bring back sound money and free markets- yes, even in healthcare- if we hope to soften the economic blows coming our way.

Audio Transcript:

9 Responses

  1. Tweets that mention Healthcare and Economic Realities by Ron Paul | The Liberty Guardian -- Topsy.com Said,

    [...] This post was mentioned on Twitter by The Liberty Guardian. The Liberty Guardian said: Healthcare and Economic Realities http://su.pr/1kw8Fz [...]

    Posted on March 30th, 2010 at 12:39 am

  2. http://apih00006.khojedu.com Said,

    Get everyone in the house to grab two trash bags one for stuff to throw out or recycle such as old mail, food containers, and newspapers, and one for stuff to donate. He soon recovered completely. I would think that would make him think about doing it the next time. They’re fried or baked and often contain high contents of fat and are very tasty. Still, at least one member of the trio has managed to find the scoresheet in each of those four games; more significantly, OKC has posted a 3 0 1 recor

    Posted on June 17th, 2014 at 9:41 pm

  3. UL 1562 Said,

    Science, on the other hand,UL 1565, tends to be a more outward oriented,UL 2556, less selfish, profession. So I ordered up thirty thousand litres of it. He,black ugg boots uk, thus, discarded it. The snake is a simpler series of zig zag loops, and the fact that the water gets cooler as it flows along the pipe is compensated for by having the loops closer together the further they get from the boiler.,UL 2267. This is the “set up” that informs and activates my careful study of this year’s proxy s

    Posted on October 10th, 2014 at 6:49 pm

  4. IPC 7351B Said,

    We reached my car by that time, exchanged “have a good day,ugg sheepskin cuff boot,” and then off he went to his. And after he was gone I thought to myself what exactly did you mean with those words, using those words? Where did you get them from? Why did you tell me those things? I was agitated because I knew he had given me a message, just like the characters in the spiritual adventure novel The Celestine Prophecy the book we had discussed several months earlier kept on doing. They were always

    Posted on October 12th, 2014 at 7:43 pm

  5. http://www.soccerjersey1.com/ Said,

    Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax.Your spouse did not live in your home during the last 6 months of the tax year. Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. See Temporary absences , later.Your home was the main home of your child,API RP 571, stepchild,API SPEC 5CT, or foster child for more than half the year. This must be done carefully avoi

    Posted on October 14th, 2014 at 7:26 pm

  6. UL 262 Said,

    Lighthouse Society,UL 789, where Gales is based. Point Robinson Lighthouse: On Maury Island southeast of Vashon IslandHop a ferry from Seattle. Bring the whole fam damily or your 10 BFFs.”There are two houses that sleep multiple people,UL 2239,” Gales said. Everything is explained very straight forward in the manual,ugg sheepskin cuff boot, and contains all the information you need to know. So if you an electricity consumer like me,UL 1994, then this product is for you. This product is so effect

    Posted on October 15th, 2014 at 8:45 pm

  7. AAMI TIR28 Said,

    You have to take one of the engine case covers off to get to it.. MIKE : Ok Im going to switch us out of CHAT to the normal Q and A section this will make life easier for us both espcially the upload for you . If you plan on asking your girlfriend if she wants to have sex,AAMI 14971, then you should do it in an intimate setting not while you’re splitting a cheeseburger. Pour 3 cups of hot, not boiling water in a large shallow bowl. The electric car manufacturer may also have an agreement with a

    Posted on October 29th, 2014 at 8:40 pm

  8. API 1951 Said,

    “Returning was a slam dunk,ANSI/API RP 554 Part 2,” says Paulsen,API RP 2201 (R2010), who sees himself as “the veteran designated hitter.” “I come in when there are men on base and drive them in, then,ANSI/API RP 553, I go into the clubhouse, sit in a hot tub and soak my knees. The most satisfying thing is having an idea and being handed the facilities to bring that idea to life.”. There are many people who are not allowed to marry, for different reasons. Children are not allowed to marry; adult

    Posted on October 29th, 2014 at 9:58 pm

  9. API Publ 4600 Said,

    Is some singularly evil power; this is the reality of interstate relations. Until we can change the system itself,API TR 17TR4, and until people realize that simply saying how mad they are about something on facebook or accepting their once a month volunteering as their debt to society paid in full is not enough,API 650, nothing will change.. With four seasons of recreation,ANSI/API TR 6AF, and a short canal attaching it to Lake Cadillac,API TR 17TR1, residents have access to two beautiful bodie

    Posted on October 29th, 2014 at 10:39 pm

Add A Comment

Your Ad Here