July 17, 2017

RAND PAUL: Retaining instead of repealing Obamacare will be Republicans’ undoing.

If we are to subsidize health insurance, why not food? Or water? Or housing? You may respond, yes, but we already do that. You are right we have subsidized, for the poor, food and housing, but we didn’t, until now, attempt to subsidize a market item for all.

With this bill, Senate Republicans declare they have overcome Hayek’s protestations about the pretense of knowledge — the idea that no central planner can know enough to engineer an economy successfully.

With this bill, Senate Republicans declare they have the knowledge to determine and correct prices for millions of Americans who purchase health insurance. Pretense? You bet it is.

Markets are incredibly complex interactions between millions of people in a nearly simultaneous bazaar of trading. No one man or woman possesses that knowledge, so anyone who sets or attempts to set prices for health insurance is doomed to fail.

And mark my words, this Senate Healthcare bill will fail just as its twin Obamacare has, for they suffer from the same pretense of knowledge. No one is smart enough to plan even the simplest of marketplace prices — no matter how much data is available.

Entitlements are just as addicting for politicians of either party as they are for their beneficiaries — a fact Democrats have been counting on for generations.