Saturday, November 10, 2012

This Election - A Referendum on Obamacare and Liberty


Christopher DeMuth: A Referendum on ObamaCare and Liberty
Without an immediate course change, the health-care law will become irreversible.

On Tuesday, Americans will go to the polls to choose whether or not to nationalize their health-care system.
The choice for president will have numerous other consequences. But in most cases we will be choosing between tendencies shrouded in uncertainty. The candidates have staked out positions and made some explicit promises—but how these work out in practice will depend on many future contingencies, and many an earnest campaign promise has been confounded or even reversed in the past. The health-care choice is singular not only for its importance but for its certainty.
If President Barack Obama is re-elected, ObamaCare's controls over doctors, hospitals, pharmaceutical firms and other providers of medical care will be tightened, and the operations of private insurance companies will be progressively restricted. Everyone involved will know where the process is going—to a single-payer system or one with a few chosen insurers subject to national public-utility controls—and will negotiate the best possible accommodations to it. Within a few years, a new political equilibrium will be in place, making the system irreversible and subject to only marginal adjustment.
If Gov. Mitt Romney is elected, by contrast, ObamaCare's controls will be turned to promoting freer, more competitive markets, laying the groundwork for legislative "repeal and replace." That will involve straightforward policies to correct defects in health-insurance markets (portability, restrictions regarding pre-existing conditions, special-interest state mandates) while reversing ObamaCare's gratuitous further step of nationalizing health care for everyone. It will also involve bolstering the solvency of Medicare, reforming Medicaid and, one hopes, limiting the tax subsidy of employer-provided health insurance, which now distorts consumer behavior in the direction of wasteful consumption.
Which direction voters choose on Tuesday will have profound consequences for the cost, quality and availability of health care in America. 

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