Economics versus Politics
By Robert B. Helms
This article appeared in the Fall 2000 issue of The Independent Review
Medicare reform has been stalled not simply because of political maneuvering but also because too few economists have been willing to apply market principles to health-care issues. Economists need to stress that market competition in health care, as in other markets, would improve quality and allocate scarce resources to higher-valued uses, and that price controls are destructive of these desirable ends.