What Is Seen And What Is Not Seen-The Real Effects Of Socialized Medicine
What will a government takeover of the healthcare industry do to the American economy? “It probably won’t mean very much.” An article published in this morning’s Wall Street Journal claims, further explaining that “[s]ocialism, or social democracy, or whatever else you want to call it, doesn’t seem to have hurt stockholders overseas too badly. As evidence, the article cites the fact that “[o]ver the past 10 years, according to MSCI Barra, stock markets across socialized Europe have produced total returns of about 2% a year in U.S. dollar terms, according to MSCI Barra. The figure for France is just over 2% and for left-wing Britain and Holland nearer to 3%. Pinko Denmark has boomed by 10% a year.”
Of course, corporate profit increases say nothing about a country’s economic health, which is measured by the overall prosperity of its people. In fact, corporate profits are often a direct result of oppressive socialist regulations that only fatten the pockets of select businesses through laws that discourage competition and create artificial monopolies. Conversely, the damage caused by socialism is easily recognized by anyone with enough common sense to trace its effects to their logical conclusion.
Government, by and through the force of law, either prohibits or compels. In the case of socialized healthcare, the federal government will compel its citizens to pay large amounts of money which it will then payout to doctors and hospitals so that they will treat patients. Unless doctors and hospitals comply with government regulations, they will be prohibited from receiving that money, and eventually, may be denied the right to practice medicine altogether. Consequently, only those doctors and hospitals that comply with government regulations will profit. Without the pressures inherent in market competition, innovation will die, and with it, the advances in the standard of living–which cannot be measured by corporate profits–will slow.
At its best, socialism produces economic stagnation. At its worst, socialism produces tyranny.