Originally Posted by Gabo
Why then, is food relatively cheap and plentiful while health care is expensive? Because government regulations and mandates have driven up administration costs, licensing has decreased the supply of doctors, and the FDA's rules have decreased the supply of medicine.
Health care may be different economically when it comes to the conditions the market works under, but it can NEVER be different when it comes to the economic rules it follows. All economies follow the same rules, otherwise the economic model would be faulty. When you increase costs of production and decrease supply, the price of the product or service increases and the quantity supplied decreases.
Gabo, please answer in specifics:
Do you believe that government has less to do with food than with medicine? What about the subsidies to the farmers? What about the F in FDA are you ignoring?
Where do you see a decrease in doctors? We have plenty in the north east.....
People on these posts keep saying
"When you increase costs of production and decrease supply, the price of the product or service increases and the quantity supplied decreases."
Frankly, I don't see how that applies. Family MD's are in supply and their prices/costs are about the same as they were 50 years ago.
What I see has and is increasing astronomically is medical insurance.
How about this for a rule:
When the profits are increasing astronomically, more and more people will flock to join the business.
We have seen that with Health Insurance, and with the Internet. We have seen that with bottled water and with cell phones and with pharma....