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Prices reflect the relative scarcity of and the relative demand for goods and services. Because nothing we value is in infinite supply, prices help society determine who gets what. There's nothing sinister or classist about it.
But that's not what proponents of the recent healthcare legislation would have you believe. They want you to picture doctors and insurance companies as greedy fat cats who aim to reap huge profits on the backs of the sickly poor. This couldn't be further from the truth. Insurance companies and doctors are no different from owners of grocery stores, clothing stores, home improvement warehouses, or any other retail outlet. Their aim: To trade their scarce resources to others who value them more highly so that they can in turn acquire scarce resources they value more highly.
Like milk, cotton, and lumber, a doctor's time and advice are scarce resources. Currently, the market allows doctors to trade those resources for something to doctors value more highly--his fee. When your doctor agrees to see you in his office, he is signalling that he values the $50 he charges you more than the 15 minutes he spends with you. Likewise, you are signalling to the doctor that you value the 15 minutes he spends with you more than you value your $50. If he didn't, he wouldn't see you. If you didn't, you wouldn't see him.
If your doctor suddenly began charging you $100 for 15 minutes of his time, you might re-think whether you should go see him, especially for a minor ailment like a cough. You might decide that you value your $100 more than you value his time.
So why don't proponents of the recent healthcare legislation realize that the reverse is also true? Do supporters of this legislation really think that the doctors will continue to see patients when fees drop to $25 or $30? Do they think insurance companies will continue to stay in business when the law requires them to set their premiums artificially low? Just as you reach a point where you value your money more than your doctor's time, so, too, will your doctor reach a point when he values his time more than he values your money.
And then who will cure your cough? Your government? Not very likely. The president and Congress can't understand the simple concept of supply and demand. Do you think they are likely to understand the complexity of the human body?
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