Posts Tagged ‘Constitutional’

Obamacare – Day 2 – The commerce clause

Posted by Troy on 27th March 2012 in Current Events, Political

Originally, the Commerce Clause of the Constitution was intended to ensure smooth operation of trade between the States and foreign countries.  About twelve years ago, the Supreme Court heard a case about an old lady in Washington who was busted for growing marijuana.  The thing is, she had a prescription for it.  As such, it was legal for her to have marijuana.  The Feds couldn’t figure out what to do, so they prosecuted her under the Commerce Clause.  Their case was that she was supposed to smoke medical grade pot, not just stuff she grew.  Medical grade pot is grown in Texas.  As such, she is interfering with interstate commerce.  In the dissenting opinion, one Justice said, “If we rule this way, we give unlimited power to the Federal government because what doesn’t affect interstate commerce if you take it out to the nth degree?”

I grow rosemary.  How is that any different?

Now they say they can require you to own health insurance because most people will use some sort of medical treatment, and it is unfair that the young and healthy don’t buy insurance.  As such, only the old and sick buy insurance, and this raises cost.  So, rather than identify that insurance is the problem, we are going to force everyone to buy a product.   What’s really amazing is how stupid the young people are that they can be convinced to demand to be forced to buy a product.

As I laid out in 2084, their plan is designed to fail.  Inevitably, the only solution that is based upon a common pool will be to initiate Death Panels that do an actuarial analysis of the value of the patient’s life.  The reason that medical costs are so high is as follows:  In World War II, employers came up with the idea of health insurance so that they could get around compensation limitations that were in place as part of the rationing program.  As more people got on insurance, doctors were able to charge more for their services.  As doctors charged more for their services, more people felt the need to get insurance out of fear of not being able to afford medical care.  As more people got insurance, doctors were able to charge more.  As the market for insurance got saturated (everyone who could and would buy insurance had already done so), insurance companies had to raise their rates to cover the increased charges by the medical profession.  After that, it’s a spiral.  It’s all simple, self-interested, human behavior that an eighth grader can figure out.  We see the same thing happening with dental work, and we are about to see it play out with pet insurance too.

As I discussed yesterday, the Health Care Act is not covered by the powers of taxation.  It also isn’t covered by the Commerce Clause.  There is no way that the Founding Fathers would have given the government the power to deem that possible future economic transactions are to have occurred currently and demand action on a citizen.  Under this same thought process, Congress could declare that you are probably going to buy stuff and charge you the present value of all National Sales Taxes for the next twenty years at the current date.  Why not?  Under their logic, it is the same thing.

You want to fix medical costs?  Get rid of insurance completely.  There will be about five years of chaos.  After that, prices will regulate.  Third party payment systems are always doomed to failure in any market because it breaks the link between the consumer and the supplier.  Without this link, goods and services will not be priced correctly.  If you put out a product “for free,” people will take it just to take it.  This is one reason why I always sell my books instead of just give them away.  I figure if they’re not willing to pay for the book, they will just take it and not read it.

If you think the prices and supply of healthcare is bad now, just wait until it’s “free.”

Long Live the Constitution!