So we have a Chairman of the Dept. of Economics somewhere writing a letter to the Boston Globe (Wednesday, Dec. 1) explaining that the reason the U.S. spends so much on health care is that people have insurance, so that consumers are insulated from the costs. If we can just get rid of that ugly violation of free market principles, we'll see health care spending much better controlled.
The gentleman just proves what has always been obvious: economics is a branch of theology, not science. Out there in that godless place called Reality, one observes that the U.S. spends 2 to 3 times as much per capita on health care as do any of the other affluent countries. Yet in all those other countries, everybody has health insurance. In the U.S., something like 15% of the people don't! Not only that, but in most of those countries that just refuse to obey the laws of economics and of God, consumers make little or nothing in the way of copayments, whereas here, most people pay something like $10 and up for an office visit and $5 to $20 for a prescription. Medicare recipients generally have paid 100% of the cost of their drugs. But for some reason, health insurance isn't causing even half as much spending in other countries as it does here.
The scientific process consists of observing reality, and trying to explain what one observes. Theology consists of starting with received wisdom and building fanciful arguments on that foundation. If reality doesn't happen to correspond to one's conclusions, the fault lies with reality. Hence our newly faith-based National Park Service tells visitors that the Grand Canyon was created by Noah's flood, and the Department of Economics tells students, and newspaper readers, that our excessive health care costs are created by health insurance.
As Mr. Bush's Lower Father once said, Facts are stupid things.
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