Seeking to revive his stalled health-care legislation, President Barack Obama is proposing a new idea to address health costs, giving the federal government authority to block insurers from making premium rate increases, reports WSJ.
Put simply, if I control what price your business can charge, I control your business. It's a lever even Archimedes would be impressed with.
Point 2. Price controls don't work. The laws of supply and demand economics can not be overruled. A price set below the automatic supply and demand price will simply mean shortages.
This is basic Econ 101 stuff. Only the clueless or a someone desirous of being a dictator would try to institute such controls.
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