Healthcare Deflation Scare (That Was A Close One!)

Politicians and statist economists constantly bemoan sustained price decreases ("deflation") in the economy-at-large, and point to the risk of such an occurrence as sufficient evidence for the necessity of massive government stimulus efforts. Without government supporting prices and pulling the economy back from the brink of a fall down a "deflationary" abyss, the economy would quickly tailspin itself into the proverbial ground as consumers perpetually withhold making purchases in anticipation of price decreases.

Yet, when the debate centers on healthcare prices in this country, which have been steadily rising over the past few decades, these same politicians and statist economists all suffer from major anxiety attacks at the lack of "deflation" in healthcare prices.

According to them, when prices rise in the economy as a whole, "inflation" (but not too much! and not too fast!), this is all to the good. It encourages consumers to constantly spend, spend, spend lest their money lose purchasing power in the interim. But when prices rise in the healthcare industry specifically, this is bad, bad, BAD! because...


Someone is missing something here, logically. And, guess what? It isn't me!