Posted in Affordable Care Act (ObamaCare), Bailouts, Economic Issues, Government Regulations, Government Spending, Government Stimulus, Interest on the Debt, Job loss, Liberty, Medical Costs, National Debt, News From Washington, DC & Related Shenanigans, Patient Choice, Policy Issues, Poverty, Quality, Rule of Law, Tax Policy, Uncategorized, Unemployment, Wealth

ObamaCare: The Perfect New-Keynesian Policy Prescription? | Health Policy Blog |

DEPaul Krugman is apparently so entranced by the magic that he believes that forcing firms to replace capital, even if it makes them poorer, “can stimulate spending and raise employment” and “the broken windows fallacy ceases to be a fallacy.” In this alternate universe, hurricanes Katrina and Sandy could do more for U.S. economic growth than the development of the petroleum industry, the refinement of the internal combustion engine, the development of the electric power industry, or the development and use of the semiconductor transistor.

Professor Cochrane writes that macroeconomists looking at new ways to explain the slow growth disaster are considering the uncertainty introduced by arbitrary policy changes, large distorting taxes, intrusive regulations, and the “unintended disincentives of social programs.”If these new approaches are correct, and one’s goal is to inflict maximum economic damage on Americans, ObamaCare is a smashing success. It affects the whole population, generates huge uncertainty from arbitrary policy changes, imposes large distorting taxes, generates exponentially expanding intrusive regulations, and has already resulted in a veritable mother lode of unintended disincentives to work, employ people, provide medical care, start new businesses, and continue to operate existing ones.

via ObamaCare: The Perfect New-Keynesian Policy Prescription? | Health Policy Blog |


A primary care physician by training, my passion is researching and writing about the importance restoring patient centered care, supporting independent private physicians, promoting free-market solutions and seeking sustainable fiscal policy in healthcare.

2 thoughts on “ObamaCare: The Perfect New-Keynesian Policy Prescription? | Health Policy Blog |

  1. Reblogged this on Centinel2012 and commented:
    This is the very heart of the “FALSE” belief of those follow Keynesian Economics, which in essence is that any savings is bad since it takes away from spending and therefore causes unemployment.


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