Government Subsidies Drive Up Health Costs, Drive Out Private Capital

A simple graphic shows how government subsidies act on any given market.  Not only does they drive out private capital, which by its nature is more competitive, but subsidies also drives up cost.  It is important to remember that the competitive nature of private capital actually keeps costs down, as people naturally gravitate toward the best product for the best price.  When governments subsidize markets with endless supplies of money, costs begin to rise as consumption becomes undervalued.  The graphic below demonstrates this phenomenon well enough.

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About Jeremiah Dow
I have a B.S. in Politics, Philosophy, and Economics with a minor in Economics. I finished school in 2010 and am currently working on independent research in various areas including political and economic philosophy, government, and history. I am also currently looking for work in research, particularly the social sciences dealing with public policy work. I aspire to a top-level graduate institution, but would first prefer some professional research experience. Some of my primary influences are Ayn Rand, Noam Chomsky, and Howard Zinn among others.

One Response to Government Subsidies Drive Up Health Costs, Drive Out Private Capital

  1. Pingback: » NSF Innovation Corps — What America Does Best

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