Health Care Reform Won't Reduce Costs

Health Care Reform won't reduce costs. Any argument that it will is false. Economically it's not possible to increase demand without increasing supply and reduce cost. It's not possible.

When demand increases and supply doesn't, two things can happen. First, if the price doesn't change a shortage will occur, because more people will demand the product at the same price, but the quantitly supplied at that price will not increase. Second, prices will increase resulting in an increase in the quantitly supplied, but then some people will not be able to afford the same product at the new price. That is what happens today, increases in demand result in higher prices which means fewer people can afford the same amount of health care.

There is nothing in the bill to increase the quantity supplied or the amount of supply. If prices are not allowed to increase to meet the new demand, then shortages in health care will occur. This is why Health Care Reform won't reduce cost.

Extremus