Medicare reform has been stalled not simply because of political maneuvering but also because too few economists have been willing to apply market principles to health-care issues. Economists need to stress that market competition in health care, as in other markets, would improve quality and allocate scarce resources to higher-valued uses, and that price controls are destructive of these desirable ends.
Robert B. Helms is Resident Scholar and Director of Health Policy Studies, American Enterprise Institute.