How Government Healthcare Interference Got Started in the U.S. and What It Will Lead To: Murray Rothbard

Thanks to Robert Wenzel for posting this short essay by the master.

Sadly the nationalized health care storm has been heading toward us for a very long time.

The Obamacare “solution” hatched as a compromise between statists and corporations to a problem created by statists and corporations, will have nasty ramifications for the Republic, if we can even call it that any more.

Is there a problem with the cost of health care in this country? Absolutely. But it isn’t because a rampant free market in medicine exists. In fact we have an extremely unfree market distorted by hundreds of government programs which incentivize patients and providers to act in ways which increase costs.

The problem was created by the state, and now the state is going to solve the problem.



“One of Ludwig von Mises’s keenest insights was on the cumulative tendency of government intervention. The government, in its wisdom, perceives a problem (and Lord knows, there are always problems!). The government then intervenes to “solve” that problem. But lo and behold! instead of solving the initial problem, the intervention creates two or three further problems, which the government feels it must intervene to heal, and so on toward socialism.

No industry provides a more dramatic illustration of this malignant process than medical care. We stand at the seemingly inexorable brink of fully socialized medicine, or what is euphemistically called “national health insurance.” Physician and hospital prices are high and are always rising rapidly, far beyond general inflation. As a result, the medically uninsured can scarcely pay at all, so that those who are not certifiable claimants for charity or Medicaid are bereft. Hence, the call for national health insurance.”

Click here for the rest of Rothbard’s piece.