WHY WE SHOULD GIVE HEALTHCARE A CHANCE: A COMPARATIVE ANALYSIS OF EVOLVING ECONOMIC JURISPRUDENCE & POLICYFA L L 2 0 1 2P O S C 4 7 0D R . D AV E P E T E R SBY: Z A C H A RY F I G U E R O A

THESISAlthough some maintain that a strictly free market approach to the healthcare industry

might still be necessary, an evolution of domestic economic policy may support the current shift in America toward healthcare nationalization and lend credence to the

subsequent Supreme Court decision, National Federation of Independent Business

v. Sebelius, 567 U.S. ___ (2012).

NATIONAL FEDERATION OF INDEPENDENT BUSINESS V. SEBELIUS, 567 U.S. __ (2012).The Federal Government’s arguments for constitutionality:• The Commerce Clause• The Necessary & Proper Clause• Federal Taxing Powers

We do not consider whether the Act embodies sound policies. That judgment

is entrusted to the Nation’s elected leaders. We ask only whether Congress has the power under the Constitution to

enact the challenged provisions.”

- Chief Justice John Roberts,NFIB v. Sebelius, 567 U.S. ___ (2012), 2.

THE COMMERCE CLAUSE• The power to regulate commerce presupposes the existence of commercial activity to be regulated. • The individual mandate compels individuals to become active in commerce by purchasing a product and their failure to do so affects interstate commerce. • The Affordable Care Act under the Commerce Clause would give Congress the same license to regulate what people do not do.

THE NECESSARY & PROPER CLAUSE• The individual mandate vests Congress with the extraordinary ability to create the necessary predicate to exercise an enumerated power and draw within its regulatory scope those who would otherwise be outside of it. • The individual mandate is “necessary” to the Affordable Care Act’s other reforms; however, such an expansion of federal power is not a “proper” means for making those reforms effective.

FEDERAL TAXING POWERS• the mandate as imposing a tax on those who do not buy the product being offered. • The payment is not so high that there is really no other choice but to buy health insurance• The payment is collected solely by the IRS through the normal means of taxation.

A NEW ECONOMIC THOUGHT

Should we embrace new regulation and the infusion of capital into healthcare and other industries in order to promote a more equal balance of representation and a more secure

domestic economy?

CONTRA-NEOCLASSICAL ECONOMIC THOUGHTActive government involvement in the economy & increases in public spending on:• Education•Physical Infrastructure•Healthcare•Military•Research & Development

“Nearly every economic analysis of the health care industry rests on the observation

that individually purchased private insurance is not a viable business model for providing medical services. Such insurance

is broadly affordable only if most policy holders are healthy most of the time.”

- Robert Frank, Giving Health Care a Chance to Evolve