Sunday, May 22, 2016

Government regulations continue to grow unabated

How exactly does this add value to the economy?

The busybodies, world improvers, and no nothings in government, much like termites eating away at a house, work continuously to eat away at our markets. As one can see from the chart above it is a never ending slow but sure climb in regulation that hamstrings the market.

What is even more insidious about these regulations is that they are enacted to fix previous interventions by government. One of the most publicized and largest of interventions is Obamacare. This program was ostensibly sold to the dimwits as a way to insure people who lacked employer provided health insurance. Because fairness.

What I find amusing is the that most people do not even understand where employer provided health insurance even originated. In fact the concept of employer provided health insurance came about because of government interference in the labor markets during WW2. During the war there was a shortage of workers to work in defense plants and industry because of the many men who entered into military service. In a market economy labor would be rationed to its highest and best use by raising the cost and ensuring that the labor went to where it was most useful. Of course the statists running the government, i.e. the demigod FDR, were having none of that so they outlawed wage increases. However this did not stop the free market as the people running private enterprise are always smarter than the people in government. The private businesses began offering employer provided health insurance as a perk to entice workers to change jobs.

In fact the perk was so good that in many cases 100% of your healthcare was paid with no copay. Ah the good old days. As the economy matured and has become more sclerotic companies have had to pair down this perk or get rid of it all together. This has caused a so called crisis that someone needs to solve. The costs for healthcare have risen due to the entry of government into the arena (Medicare, Medicad and insurance mandates like Obamacare) and the continued regulation of medicine and the insurance industries. All this has been done mind you in the best interest of the dimwits who keep asking for even more intervention into the economy by people who are neither qualified nor understand the things they are regulating. But hey it sounds good on TV and that's what the lobbyists who give them money want so what the heck.

When Obamacare collapses, as it certainly will, there will cries from the hoi polloi demanding that someone do something. Do not despair 'muricans your elected officials stand ready to bend you over and give it too you good and hard one more time. All for your own good and because you asked for it.

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