Will the Healthcare Bill Wreck the Economy?

By on March 20, 2010

Brett Arends of The Wall Street Journal attempts to answer the question of the impact of socialized medicine on economic prosperity:

Socialism, or social democracy, or whatever else you want to call it, doesn’t seem to have hurt stockholders overseas too badly. Over the past 10 years, according to MSCI Barra, stock markets across socialized Europe have produced total returns of about 2% a year in U.S. dollar terms, according to MSCI Barra. The figure for France is just over 2% and for left-wing Britain and Holland nearer to 3%. Pinko Denmark has boomed by 10% a year.

Meanwhile, here in the land of the free, investors have made zero.

SMA Comment: The sample size Arends refers to (10 years) is probably too small to draw any conclusion. Besides, international stocks had underperformed for about two decades before the year 2000 and were due to reverse the trend. However, passing the healthcare bill will probably not destroy society and the economy as we know it as some conservatives would have us believe.

Source: The Wall Street Journal

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