Economic Efficiency

Right now, we are seeing the beginning of the rollout of Obamacare, the kludge solution to America's broken health care system. The Affordable Care Act is a suite of laws and regulations that are designed to improve access to health care services in the United States, and the rollout has been spaced out over the course of a few years. Right now, the rollout is intensifying but the most significant elements will not arrive until 2014. As with any major policy change, there are myriad criticisms, and in this case one of those criticisms is the impact that Obamacare will have on the economics of health care in the United States. This paper will examine the effect of the law from the perspective of allocative efficiency.

Background

The key concept here is allocative efficiency. When a market operates under the condition of allocative efficiency, "the value consumers place...
[ View Full Essay]