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Tuesday, October 06, 2009

Small Biz Health Care Daily: The President and Small Business

In his weekly address on October 3, President Barack Obama talked about health care reform, and focused primarily on small business. He spoke a great deal about how rising health care costs hurt entrepreneurs and small firms.

Good point.

Unfortunately, the President failed to explain how his plan to inject more government into health care would somehow bring down those costs. After all, where has more government ever meant lower costs before? Certainly not in health care. Just look at Medicare and Medicaid.

The President did mention the proposal for “insurance exchanges,” and how small firms could buy plans via these exchanges. Unfortunately, what the President failed to mention was that these exchanges would primarily be vehicles for government mandates and regulations. Again, how exactly would more mandates and regulations lead to lower costs? Of course, the answer is that they will not. Instead, mandates and regulations would only lead to increased costs and fewer choices in the market, which, ironically, further lays the foundation for nationalized health care.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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