A HOTLINE reader recently sent us a classic oldie-but-goody economics lesson from economic scholar Mark Perry. Given all the chaos in Washington over Obamacare and the runaway train of health care costs, we thought we’d recite Perry’s timeless message.

It looks like Congress has chosen the worst of all options: offering more medical services to patients essentially for “free.”

That wasn’t always the case. Perry shows that in 1960, half of medical costs were paid by the patient and today it is less than 10% with many Obamacare subsidies offered for free – I.e., no co-pays required!

If you put a free candy jar in front of a bunch of 4th grade kids, it’s a guarantee the basket will be empty by the end of the day.

What Perry has also discovered is that the less patients pay for health services, the more the cost rises.  So plastic surgery, breast implants, lasik eye-surgery (for cosmetic reasons), and most other procedures NOT covered by insurance or Medicare/Medicaid have been level or fallen in price. Over that same time insurance or taxpayer-covered medical services doubled and tripled in price.

So wouldn’t you know it: the confederacy of dunces in Congress – led by Chuck Schumer – have chosen to expand Obamacare insurance subsidies to people making as much as half a million dollars a year. Congrats Congress: you’ve managed to stumble on the worst possible option to control costs.