Tuesday, February 12, 2008

The Government will now buy homes for the "poor"…

It was announced today that the government will pay for new homes for the poor. If you make less than $35,000 a year are a family of 4 or more, you will be able to choose a home with a value up to $650,000. The government will deduct an additional $600 a month from everyone’s paycheck making over $35,000 to pay for the program.

Hillary Clinton was asked about the program, and she said she liked it on the surface but was concerned that the $650,000 limit may not be high enough for some areas of the country. She proposed a $1,000,000 limit for California and some parts of the East Coast.

In the same announcement the government is requiring all employers to pay a minimum wage of $27.00 per hour to help increase the amount of taxes they can collect for the new programs being introduced. The increase in the minimum wage is expected to eliminate all Americans from poverty.

When the franchise owner of McDonalds was asked how this was going to impact the price of a Big Mac, he was quoted as saying; “it will go from $2.49 to $8.49 but will include an apple pie for desert.”

This is what liberal politicians would love to do, but why can’t they? Why can’t Hillary and Obama just pass a law that healthcare will be free to all Americans? Why can’t the government just raise wages and expect everything to get better? It’s called the market.

Anyone that has ever spent ten seconds in an Economics class knows the law of supply and demand. When the price goes down, demand goes up but what about supply? Supply is driven by demand but also the ability to make profit. If you limit profit with price controls, no one will produce the product. So even though you raised the wages of workers, increasing the supply of money, you will have to increase the cost of goods to pay the wages or their will be no profit for making Big Macs. The supply will go away and the job will follow if you limit the price a producer of Big Macs can charge.

There are many principles at work but if you were given a house with a value up to $1,000,000, if you made less than $35,000 and had 2 children, is your incentive to make more than 35K or less than 35K? Is your incentive to have no children or 2 children? Controlling the market has consequences.

So why is it different with healthcare? It isn’t. If you make healthcare available to everyone through tax payer subsidies, demand will increase. If you force providers to treat everyone, at a mandated price, providers will limit supply. If you force them to increase supply you will harm quality. In the end no one will become a doctor or nurse unless of course you are forced to do it. Is that freedom?

Hillary has never held a job in the private sector beyond a short unsuccessful stint as a lawyer. She believes she knows better because she believes she has good intentions. We all have good intentions but the road to hell is paved with good intentions. Just ask the Russians, Chinese, and Cubans. Let’s ask the government to get out of our lives, not become further entrenched in our lives. I know Hillary is not very intelligent, but are you? Do you trust the market or Hillary?

1 comment:

Ken Hand said...

I couldn't agree with you more.