Decentralization Is Centralization?

It seems fair to characterize Obama’s “vision” as one that would move America even further along the road to centralized authoritarian government, and that in stark contrast to this, Romney and Ryan favor an approach where economic and political power is more decentralized. Now comes Matthew Yglesias, arguing, in a recent post relating to Medicare and ObamaCare, that decentralization (i.e., markets and competition within markets) is really centralization. If Yglesias keeps this nonsense up, his photo will soon appear in the dictionary beside the word “Orwellian.” Indeed, liberal desperation is not a pretty sight.

By the way, the Peter Orszag example that apparently inspired Yglesias to his decentralization is centralization absurdity makes no sense. If the expensive beneficiary stays in traditional Medicare, then the average costs for the private insurer would not be $100, but would in fact be $50, which then would be the price that the inexpensive beneficiary would pay. Total costs would be $200 ($150 plus $50), not the $240 claimed by Orszag. And if we go beyond a static example and consider the dynamic aspects of competition, we could expect these costs to come down.

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