Posted on 08/29/2009 2:27:52 PM PDT by conservatism_IS_compassion
Gresham's law states that any circulating currency consisting of both "good" and "bad" money (both forms required to be accepted at equal value under legal tender law) quickly becomes dominated by the "bad" money. This is because people spending money will hand over the "bad" coins rather than the "good" ones, keeping the "good" ones for themselves.Consider a customer purchasing an item which costs five pence, who possesses several silver sixpence coins. Some of these coins are more debased, while others are less so - but legally, they are all mandated to be of equal value. The customer would prefer to retain the better coins, and so offers the shopkeeper the most debased one. In turn, the shopkeeper must give one penny in change - and has every reason to give the most debased penny. Thus, the coins that circulate in the transaction will tend to be of the most debased sort available to the parties. - http://en.wikipedia.org/wiki/Gresham's_law
My point in citing that law of economics is to attempt to generalize it. The effect of the legal governmental stipulation of the value of the coin, apart from its commodity value, is to artificially equate the value of a new, full-weight coin with that of similar coins of lesser weight of precious metal. And Gresham's law simply says that in the case where the government stipulates the value of a lower-quality good to be equal to a better-quality good, the higher-quality good will be scarce and the lower-quality good will be plentiful. If health care is prices are fixed and low, high quality health care will be scarce, and you will need pull to get anything better than the minimum quality.
Ping.
While there were plenty of folks who attended that were up in arms about this debacle taking place in Congress, I did see plenty of Zero's supporters, including the bused in Union Stooges dressed up as 'rich taxpayers' carrying placards saying things like "Thanks for Keeping Us Wealthy", and there were others who had placards that said, "No One In America Should Go Without Healthcare".
I thought to myself, "Well, if people shouldn't be without healthcare, why don't they just get off their backsides and get a job--any job--and purchase a plan with their OWN MONEY?!" Other hard working Americans should not have to subsidize these people because most refuse to make that a priority. Instead, cut out the trips to Starbucks, and save up a few...well, bucks to pay for insurance.
BTTT
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