Friday, April 07, 2006

Why there are 50 states

There is a good op-ed in the Wall Street Jornal today by Arnold Kling entitled "Bill of Health." Massachusetts has made national news this week by enacting a bill that forces everyone in the state to have health insurance, one way or the other. Through a collection of subsides and tax incentives the Commonwealth believes it solved the state's health care issues.

I'll let you read Mr. Kling's discussion, as his explaination of why this bill is completely silly is far better than I would do. Essentially, there is no such thing as a free lunch. Someone has to pay for all of this health care, and it appears to me that Massachusetts has just decided to shift even more of the burden to we taxpayers.

What I actually like about this whole issue instead had to do with the role of State government and illustrates just one reason that the United States is great. Last summer I had a rollicking conversation with several friends about the purpose of State Government vs. Federal government. My point is that people at a macro level move to wear conditions are best for them. I tried to illustrate by pointing out that people moving to an area often choose the neighborhood to move into based on the quality of a school system. They didn't buy that (bewildering to me to this day) they belived people don't move based on econmics (again, bewildering, no wonder they don't "get it." ;-)

At any rate, this health care issue is a great example of why we have fifty states rather than one big country. Massachusetts has chosen, through self government to go in one direction. It might be right, it might be wrong - only time will tell. My guess is that Masshchusetts insurance and or tax rates are about to go much higher, but we'll see. The good news is that in a free country with fifty different systems of state government, we are free to move among these different systems as we choose, and still be bound together by a larger whole, and enjoy the protections it affords. Competition almost always serves the consumer!

New Hampshire anyone?

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