Smartest Man Ever Doesn't Understand Supply and Demand

From an interview with Katie Couric (emphasis mine):
What I think is important, at this stage, is not trying to micromanage what benefits are covered. Because I think we're still trying to get a framework. And my main focus is making sure that people have the options of high quality care at the lowest possible price.
From a speech on the Federal Family Education Loan program (emphasis mine):
And yet, in a paradox of American life, at the very moment it's never been more important to have a quality higher education, the cost of that kind of that kind of education has never been higher.
The highest quality care will clear at the lowest price but not at a low price. The lowest price can easily be far more than any one person can afford. The nicest stuff at the nicest store trades for a willing seller's lowest price, but still for far more than a Wal-Mart shopper can afford. But of course, politicians don't see it that way. What they mean by lowest price is the price they want to pay and if such a price overcomes the seller's costs, great. If not, well, that's the seller's problem.

As for his comment about education, if a good or service has never been more important, then of course its price will have never been higher.

Don't they teach this stuff at Smartest Man Ever College?


Anonymous said...

The majority of college students attend public institutions. So you believe that goverment run entities can be responsive to market forces?

The Daily Pander said...

Of course they can. But governments can change the rules in ways markets can't.