The ACA And Fundamental Political Axioms – A Conflict

There is an ironclad law of redistributive politics at play in the ACA (ObamaCare) fiasco.

This law is that concentrated interests almost always conquer diffuse interests.  Milk producers are a concentrated interest.  Milk consumers are a diffuse interest.  Guess which group is favored by the long history of milk price supports?  Dairy farmers get fat checks.  School teachers and plumbers and accountants pay more for milk.

One corollary to this law is that legislators try to create concentrated benefits and diffuse costs by separating the funding mechanism (taxes on all) from the supply of benefits (a local interest). Perhaps your community benefits from a community center, educational program, or a resurfaced highway.  Those projects almost always fail a simple cost-benefit test because if they made sense for local communities to do, they would just do them.  If they don’t, they seek assistance from their representatives in Congress.

That’s the opening couple of paragraphs from the Pileus blog. Take a look at the entire article to understand how the President violated the law of redistributive politics.

Addendum: As long as we’re doing Obamacare you might as well take a look at this. It details the blueprint for gaming the ACA that is embedded in the law.

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