ChristianKl comments on Rationality Quotes October 2013 - Less Wrong

7 [deleted] 05 October 2013 09:02PM

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Comment author: James_Miller 03 October 2013 02:15:59PM 9 points [-]

It is entirely reasonable to believe that Obamacare is terrible policy that will hurt more people than it helps. Your inability to grasp that anyone has this belief does not mean that everyone who disagrees with you is a venal, amoral wretch; it means that you have been blinded by confirmation bias and your own lack of empathy...

Similarly, it is entirely reasonable to believe that Obamacare is good policy that will help more people than it hurts. The fact that you think otherwise does not mean that the law’s supporters are too stupid to be allowed near sharp objects. It means that they are valuing different things -- expanded coverage over innovation, for instance -- or else that their assessment of the probability that various things will go wrong is different from yours.

Megan McArdle

Comment author: ChristianKl 03 October 2013 05:21:35PM 1 point [-]

It means that they are valuing different things -- expanded coverage over innovation

In what way does expanding coverage reduces innovation? If anything more coverage means a bigger market for innovations.

Comment author: James_Miller 03 October 2013 06:24:12PM -1 points [-]

By lowering prices for drugs, for example, more people can afford them but pharmaceutical firms have lower profit incentives to find new drugs. The medical device tax, furthermore, will help fund Obama care but also reduce incentives to develop new medical devices.

Comment author: Estarlio 13 October 2013 02:54:08PM 0 points [-]

Depends on the price elasticity of demand. If you widen the access to the thing by lowering the price, it's possible that you might make more profit than someone who has fewer customers who they make a lot more profit per customer off of.

Comment author: Eugine_Nier 14 October 2013 12:12:45AM -1 points [-]

In situations where this is the case, the company in question doesn't need to be ordered by the government to do this.

Comment author: Estarlio 14 October 2013 08:06:47PM 0 points [-]

Setting a price isn't necessarily a decision made with respects to the interests of one company. Not knowing precisely how the marketing groups for medical goods in the US are set up, beyond that they're pretty abusive, I don't care to argue that one way or the other though.

Comment author: ChristianKl 04 October 2013 09:41:10AM 0 points [-]

Expanding coverage and lowering prices are two different issues.

You can be in favor of one and not the other.

Big Pharma was in favor of Obamacare. The made a deal. Obama didn't choose to implement effective price cutting policies such as allowing reimportation of drugs. Then Big Pharma spend millions for advertisements to promote Obamacare.

Comment author: James_Miller 04 October 2013 12:42:53PM 0 points [-]

Big Pharma was in favor of Obamacare

Two possible reasons:

(1) Blackmail--Obamacare harmed them, but big Pharma was told by Democrats that if they didn't support it the Democrats would pass something that harmed them even more. The medical device industry didn't support Obamacare and as a result they got hit with a special tax in the final bill.

(2) Reduced competition--Obamacare makes it harder for other firms to enter the pharmaceutical industry.

Comment author: ChristianKl 04 October 2013 01:32:05PM 0 points [-]

As far as the medical device tax goes, I agree that it's worth repealing it.

In total it's however zero sum for spending on healthcare. The tax pays for tax rabates for health insurance. Money payed into the health insurance system gets spend on medicial expenditures.

Comment author: mwengler 04 October 2013 04:51:37PM -1 points [-]

I suspect innovation gets shifted more than it gets reduced, and there are forces pushing innovation up.

To the extent Obamacare subsidizes medicine more than it is already subsidized, and if it has a net cost > 0, then it does, it should encourage innovation. Some of the shift and/or additional innovation will be how to game the system more effectively, which is presumably a low-value outcome for society. But some of it will be how to provide care that this system will pay for, perhaps more innovation towards the afflictions of those who will gain access to medical care that did not previously have as much access, and so on.

If it shifts money away from drug makers, but it puts in more money on net, then there is lower innovation on the drug side and higher innovation where the new profits are to be made.

Comment author: Eugine_Nier 05 October 2013 03:46:53AM -1 points [-]

To the extent Obamacare subsidizes medicine more than it is already subsidized, and if it has a net cost > 0, then it does, it should encourage innovation.

This will only happen if being innovative is favored by the subsidies and the people deciding who gets subsidies can tell improvements apart from change for the sake of change.