Friday, November 15, 2013

I was thinking and reading about Obamacare earlier today and I was suddenly struck by the parallels with the housing bubble:  a whole industry forced to make bad financial decisions for the alleged good of the less fortunate, without concern for how it would affect the less fortunate or the industry in the long run (economic LeChatelier's Principle, anyone?  You can't force a whole country to pretend nothing's different because changes are being made for a good cause).

The only defense I've heard against wiping the slate clean and starting over with deliberate care (other than "all those actuaries who had to scramble to accommodate recent changes will need to start all over, again")?  "Defunding the ACA would have a greater negative impact."

Maybe so, in the short run.  In the long run?  I can think of things a lot worse than both Obamacare functioning only as advertised and things being exactly as they were before.