This is an excerpt from Paul Krugman’s latest (February 18) op-ed piece at the New York Times:
Sky-high rate increases make a powerful case for action. And they show, in particular, that we need comprehensive, guaranteed coverage — which is exactly what Democrats are trying to accomplish.
What’s with this guy? How do these people become Nobel Laureates? Of course now I’m going to answer my own question: if it’s politically expedient — and everything Krugman says is — then even the most foolish theoretician will rise through the ranks.
So the next question is this: is Krugman really stupid? Does he really believe this nonsense? Or is he so smart that he recognizes pumping out this drivel is good for his career? I think it’s the latter.
Dear Paul Krugman:
When the government attempts to make any asset class more accessible by passing out grants, entitlements, easier credit, or anything else, it achieves the opposite affect of its intended objective. Let me say it more clearly: when the government gets involved, demand increases, and prices go up.
Here are some examples:
- The housing market. The government is comprised largely of people who want votes. Historically, in order to get these votes, politicians have literally made money so easy to get for housing that any redneck with a job could buy a double-wide. This caused artificial demand. Artificial demand created a bubble.
- Tuition. Adjusted for inflation, a student from Texas could attend the University of Texas for about $500 a semester in the 1940s. Today, tuition costs are exponentially higher. Why? Because the government created programs making it possible for any idiot with a mouth and a pencil could go to college. The result? Artificial demand. And what did we say happens when we create artificial demand? Say it with me, Mr. Krugman: prices go higher. Much higher.
- Healthcare. Do we really need to go on, Mr. Krugman? Or do you get it now? We already have universal healthcare, Mr. Krugman, because any fat slob with a skinned knee can go to the emergency room, free-of-charge. Costs aren’t higher because of “evil corporations;” costs are higher because hospitals cannot refuse service. Consequently, they can’t collect for their services much of the time.
You want to fix healthcare? Get the government out of it. It can’t even run a post office or a passenger rail line. Why should we want them healing us?