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Economist's Review of Obama-PelosiCARE. Do you agree?

Greg Mankiw, Harvard Univ. Economics: Let's review some basic principles of supply and demand: If a government policy increases the demand for a service, the price of that service tends to rise. If the government prevents prices from rising, shortages develop. The quantity provided is then determined by supply and not demand. In the presence of such excess demand, the result could be a two-tier market structure. Consumers who can somehow pay more than the government-mandated price will be able to purchase the service, while those paying the controlled price may be unable to find a willing supplier.

Answer Question
 
grlygrlz2

Asked by grlygrlz2 at 6:08 PM on Nov. 28, 2009 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (17)
  • grlygrlz2

    Answer by grlygrlz2 at 6:09 PM on Nov. 28, 2009

  • Well, yeah, I've been saying that for ages but everyone on here ignores me when I do.
    lovinangels

    Answer by lovinangels at 6:56 PM on Nov. 28, 2009

  • I only believe economists who say it will work. Everyone else is suspect. *sarcasm*
    mancosmomma

    Answer by mancosmomma at 7:13 PM on Nov. 28, 2009

  • Nails it on the head as history proves.
    Carpy

    Answer by Carpy at 7:16 PM on Nov. 28, 2009

  • I believe the CBO
    Anonymous

    Answer by Anonymous at 7:41 PM on Nov. 28, 2009

  • The laws of supply and demand may apply in a free market, but health care is not a free market, even now. UHc's in other countries are essentially managed markets which can have imperfections but nevertheless do deliver on healthcare. I am surprised at someone who is presumably a Harvard economist adopting such an elementary approach to what is a complex problem .
    janet116

    Answer by janet116 at 7:53 PM on Nov. 28, 2009

  • janet you do realize the US is SUBSTANTIALLY larger then other countries don't you? you are referring to UHC. Do you mean true UHC as in these 'other' nations?
    grlygrlz2

    Answer by grlygrlz2 at 8:12 PM on Nov. 28, 2009

  • And another thing to consider Janet is most of these other countries are losing their asses with UHC and attempting to phase it out.
    Carpy

    Answer by Carpy at 8:15 PM on Nov. 28, 2009

  • The laws of supply and demand absolutely apply in controlled markets...it's just that one or the other is manipulated in the first place, but the resulting reaction (of the supply or demand) of the initial one which is manipulated still occurs.
    Anonymous

    Answer by Anonymous at 10:02 PM on Nov. 28, 2009

  • What he describes is exactly what happens in the UK.

    People who can afford private health care, get it, and get better care.

    People who cannot afford private health care are subject to waiting lists and rationing.
    Anonymous

    Answer by Anonymous at 10:04 PM on Nov. 28, 2009

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