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Blog Posted in avatar   Allen Small's Blog

Obama-care and unlimited government

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By Allen Small
Posted Jul 8, 2012 in Politics
Most Canadians walk around under the delusion that the American healthcare system is a free market system, and that's why it's so expensive. Of course Americans probably believe that too, which doesn't help matters.
Many Canadians pride themselves in thinking: "we take care of our own - no matter what," that makes us better then our Yankee cousins. Well, our Yankee cousins have finally come around to our way of thinking, too bad for them.
Of course Obama-care will fix everything, score another point for unlimited government. Maybe once, a long time long ago, the American health care system was a free market, but the picture to the left and the second video below should dispel that misconception for today. There has been no free market in American health care for generations. The truth is, in a genuinely free market system, health care prices would be controlled strictly by supply and demand, like anything else.
Amazingly, those same people that believe health care is overpriced because of greed from insurance companies, doctors, you can name your own scapegoat here; well those people, put healthcare in a special category different from other services or products. The reason is easy to understand, if your income is low and you need healthcare you may have a problem, health care is pricey. People view this problem in the same way as they do if you have low income and you need a vacation. Your income is low and you need a vacation? Well, you may be out of luck, low income individuals typically cannot afford vacations. But it's not entirely out of the question. There are so many choices in the vacation industry, at so many price levels its possible even for low income people to find something that is affordable. How is that possible? Its possible because the vacation industry has far less regulation, no monopolies and as a result tremendous competition. Competition invariably lowers prices and improves service and those people that put health care in a different category know this is true for everything else.
What works for the vacation industry, the computer and electronics industry, the food industry, any industry, would also work for medical insurance and the health care industry. Why wouldn't it?
So, as Canadians become more and more disenchanted with socialized medicine, our American cousins are embracing it more and more. Here is what Nick Gillespie on ReasonTV thinks about Obama-care:
Here is a historical perspective on the American health care system with some alternative solutions to a needlessly complex issue.

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