This is a big problem people. Businesses are increasingly getting addicted to the government extracted money which comes from you and me. (And from our children and their children’s children.) Good to see even the folks at Harvard getting hip to this. Now if we could just reduce the key to crony capitalism, the thing which insulates these businesses from competition and which costs consumers billions, crony government. (And really there is no other kind.)
Indeed Obamacare is a massive, colossal vehicle for crony capitalism. We have maintained this from the very beginning of the program. It is full of sweetheart deals, exceptions for politically powerful groups, and most importantly nice fat revenue streams to the health care monolith. It should always be remembered that pharma and the insurance industry wrote big parts of Obamacare. It’s how the Dems bought off industry to squeeze in a highly partisan, hyper-partisan, piece of legislation.
The man who founded the religion which gave crony capitalism a degree of respectability for too long. J.M. Keynes.
We absolutely agree. As we have said in the past the effort is laudable and we will continue to watch it. And it appears that the folks at The Economist are heading in the right direction. The most recent edition is much better than the initial effort for instance. Our hope is that this trend will continue.
In another life I was a property and casualty insurance underwriter. I would assess risk and figure out if premiums for a given area were enough or too much. Was the company too exposed to hurricane damage? What about earthquakes? Balancing risk with premium was the name of the game.
Given my background I have never understood how Obamacare was going to “work.” Obamacare seemed (and is) an adverse selection machine. The sick are more likely to sign up and the healthy have shied from the program for any number of reasons.
It’s good to be a favored contractor in Washington DC. Usually not so good for the taxpayer though.
Many people see the federal government as not reflecting their views at all. Some see the unending expansion of the state into every nook and cranny of life, and the gaming of the government by powerful corporate and political interests, as a real threat. Indeed that our massive government is encroaching on the things many Americans hold particularly dear, independence, for some – faith, economic liberty, liberty generally, privacy, and so on.
Shocking that such a simple system is failing so badly.
Obamacare has been collapsing for a while. Actually pretty much since it started. A bunch of the state co-ops are dead. More are readying themselves for the grave. And now even the crony partners are starting to abandon the scheme. Indeed repeal may not even be necessary. Ironically the Obamacare experiment may long stand as a testament to one of pro-market economist FA Hayek’s key insights, The Pretense of Knowledge.
It is gratifying to see crony capitalism getting the attention it is in the GOP debates. Every major Republican candidate has weighed in on the issue, one way or another. Ms. Fiorina rightly sees the crony nature of Obamacare, and made an issue of it last night. The ACA was indeed written by the insurance and pharmaceutical industries. It’s the only reason, ultimately, Obamacare became law.
Welcome to economic reality.
This guy and his friends never actually signed up. (They couldn’t afford to.)
In another life I was an insurance underwriter. I used to look at risks and then make sure my company had the right prices for the risks my company was insuring. I have never understood how Obamacare was supposed to “work.” It makes no sense in terms of insurance. The risks are too vast. The goals far too ambitious. It’s basically a giant (increasingly failed) experiment paid for by taxpayers designed (poorly) to address problems in the healthcare system which were originally created by government intervention in healthcare.
Don’t freak out. Marx is hardly the solution and the author of this excellent article understands this. Indeed the author understands quite a lot. I was unfamiliar with Dr. Dworkin who is obviously a very interesting thinker with a highly developed sense of crony capitalism, what it is, and what is driving it.
This is not to say we agree with him on all points. We don’t. But even still, a very well done and thought provoking article.