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Source link: http://blog.mises.org/10755/a-free-market-guide-to-fixing-healthcare/

A Free-Market Guide to Fixing Healthcare

October 2, 2009 by

It’s a near-universal assumption of the healthcare debate that the current system is a market system and it is broken, and hence we should try a government system. The people who assume this aren’t considering the last 100 years of healthcare policy. Government is deeply involved at all levels, from medical licensure and patents, to direct subsidies and provision, to employee mandates and insurance-pooling controls, at all levels.

It’s been a steady path to medical serfdom all the way, under both parties, and this is precisely what accounts for most of the problems that people complain about. Meanwhile, the private dimensions of the healthcare system is what accounts for its merits.

So what are we doing? The very opposite of what we should be doing: more control instead of more freedom, more spending instead of less, more mandates instead of fewer. The logic of interventionism is taking over: problems are being addressed by more of what caused the problems. The sick patient is being given more poison with the claim that it is the cure.

We’ve put together this healthcare reader as a means of providing a deeper understanding of cause and effect. This market is like all other sectors of society: it functions best under conditions of freedom rather than state control. FULL ARTICLE

{ 22 comments }

Abhilash Nambiar October 2, 2009 at 8:19 am

About time all these articles got consolidated. As the health care debate continues, these articles will gain prominence once again. Thanks to the smart people who make this happen.

Ron Finch October 2, 2009 at 8:59 am

Government spends two thirds of the health care dollars and has been the biggest spender for over a decade. If it is broken (and it is), it is a failure of government. The medicare and medicade price controls underpay providers and encourage more use. So it appears that we have a shortage. The smaller free market supply is priced 10 times as high as the price controlled government part because the smaller the supply the higher the price. You think it is expensive now. Just wait until you have to pay the black market price for a doctor’s services.

Tina Brewer October 2, 2009 at 10:52 am

I’m kinda surprised that George Reisman’s excellent pamphlet entitled The Real Right to Medical Care vs Socialized Medicine (or something like that, please forgive!) is not in this list. It was the single most clarifying piece I have read which explicitly and in a blow-by-blow fashion, shows how partial socialization of the healthcare market has led to inexorably rising prices.

Ned Netterville October 2, 2009 at 11:52 am

Valuable resources, I’m sure, for those who want or need to debate health care or h-c reform. These resources can serve as gas masks to filter out the poisonous mist of myths that socialists and socialism have suffused around medicine and health care. However, I’m not sure that slowing the nation’s momentum on the Road to Serfdom is a good idea, because the sooner we get there the sooner a real revolution against the nanny is likely to begin. I have expressed on my website my opinion on two aspects of current reform proposals, viz., pre-existing conditions and the necessary corollary, mandatory medical insurance. As I say of the latter on my website, “over my dead body”.
http://www.jesus-on-taxes.com/MANDATORY_INSURANCE–OVER_M.html

Matt October 2, 2009 at 1:15 pm

Where’s Reisman’s article from the 1990s (reprinted recently)?

http://mises.org/daily/3613

Michael Orlowski(The Orlonater/ChainedOrlo) October 2, 2009 at 1:35 pm

I would like to add two more articles to this list because they are extremely important and extremely neglected.

http://www.theatlantic.com/doc/200909/health-care/

http://www.theobjectivestandard.com/issues/2007-winter/moral-vs-universal-health-care.asp

Shelly October 2, 2009 at 2:09 pm

A MUST read.

How Government Solved the Health Care Crisis

Medical Insurance that Worked — Until Government “Fixed” It

by Roderick T. Long

http://libertariannation.org/a/f12l3.html

Matt October 2, 2009 at 2:12 pm
Professor_Blitzkrieg October 2, 2009 at 2:42 pm

@ Ned Netterville

“However, I’m not sure that slowing the nation’s momentum on the Road to Serfdom is a good idea, because the sooner we get there the sooner a real revolution against the nanny is likely to begin.”

I don’t know if I would be so optimistic about getting there sooner. Socialism “works” in Europe, and the majority of people there are content with it for the most part.

Socialism will work in the west because of its unfair advantage over the third world. Between unlibertarian globalization and IMF loan enslavement, the third world has no choice but to send most of its natural resources to our countries.

So even though a socialist society doesn’t produce jack, they can maintain a high quality of life by living off the backs of other people.

The reason this wealth transfer isn’t obvious is because imports/exports are measured in currency. If the price of these goods is kept superficially low, they will never show up if you measure the exchange in dollars.

In this way, I think there will be no revolution, because the people most hurt by government controls are on another continent. Granted, America will not have such a smooth ride becoming socialist as many European nations did, I think it is still inevitable.

Professor_Blitzkrieg October 2, 2009 at 2:54 pm

How Government Solved the Health Care Crisis by Roderick T. Long

This article is awesome. It should totally be near the top of this list. Laymen like to debate empirically.

Micah October 2, 2009 at 4:30 pm

Involuntary Medical Servitude
http://mises.org/daily/3657

100 Years of Medical Robbery
http://mises.org/article.aspx?Id=1547

Real Medical Freedom
http://mises.org/daily/1588

Richard Spencer October 2, 2009 at 9:55 pm

Here is an article I wrote for the American Thinker a few weeks ago. It describes Milton Friedman’s suggestions of some years ago. I think you will enjoy it as it is short and pointed. RLS

http://www.americanthinker.com/2009/09/health_care_promises_what_happ.html

Franklin October 2, 2009 at 10:49 pm

Prof. Blitzkrieg, in five short paragraphs that said it brilliantly, succinctly, aptly.
I too am dismayed at the impending, predictable reality — a further erosion of market principles, a new religion believing in so-called good government and objective arbiter of the game, and further marginalization of the “don’t tread on me” mindset.
I agree there will be a bumpy road ahead, but ultimately socialized medecine, and many other things, are a fait accompli.

What delayed the United States’ full transformation to government-operated and managed healthcare (which swept through EU) until now? It is the nation’s history, a fading but still remembered legacy, the roots of the revolution. I know this sounds less than scholarly, and is not meant to sound mystically silly, but there was always, for most citizens, a sense of individualism; it was steeped in the blood. It was in the upbringing of many Americans. That is what was the stalwart, much maligned inhibitor against the overstepping state.

Much of the citizenry, regardless of race and ethnicity, always heard the voice of the pioneer spirit. As bad as the educational system was, the frontier and log cabin imagery, the how-the-west-was-won mythology, the Ellis Island dream where the down-trodden man starts his own bakery, the children of slaves who became distinguished professionals, the “Bailey Building and Loan” standing up to Potter, liberty still had some meaning.
So there was some myth-making, to be sure. There was plenty of injustice along the way. The hucksters, the cheats, the pols, the manipulators of the system, thrived of course. But somehow, and plain as day, Americans recognized that the good guys seemed to win most of the time. I say, most of the time. The good guys, large and small, understood that things sometimes were messy; but there was freedom. With or without the wealth, most individuals knew they were free, viewed things like the IRS with skepticism (and fear) and knowingly embraced with glee the old joke, “I’m from the government and I’m here to help you.”

Walk the streets of New York, the broker with the Joseph A. Bank overcoat chats with the kiosk guy, wearing a Yankees Dugout jacket, selling cheese steaks on the corner. Oftentimes, neither one seems to envy the other’s profession; oftentimes there is mutual respect, a sense that in commerce, a few bucks exchanged for fast lunch implied their reality. They were free. Ingrained in each psyche was the tradition of self-reliance. They might not have been anarchists, but they still knew that their lives were their own, make or break; their responsibility was to themselves and their families. And government? That was the safety net of very last resort. Not the first, but the last.
It’s taken a couple of centuries, and while the Betsy Ross costumes can be seen at the grade schools on Flag day, the view of history, the rugged individualism wanes. That view is now considered quaint.
The “last resort” has moved up several notches.
Mistrust of government, which was part and parcel of the nation’s origin, practically written into a citizen’s genetic code, always provided the stiff-arm against the progressives.

In my view, it is the American history and legacy that helped delay the nonsense that would be universal healthcare. It is a legacy with many sins, but the shared vision was to be left alone. And it is why the U.S. trailed the socialized EU timeline, for many decades.
It would take time for the pendulum to shift.
And time came, and went.
But the stiff-arm grew tired.
The resolve weakened.
The outlook, the paradigm, the small government mentality has practically run its course. Universal healthcare is no longer considered succumbing to the state.

As the poster said, most people in EU are content with the way socialism “works.” The artificial protections and perversions of true free trade lend cover against the economic reality of government as provider.
And most in the U.S. will be content as well.

It is late and I ramble. I shake my head, jotting down these words, resigned to the reality.
Sadly, it comes.

D. Ha October 3, 2009 at 12:18 am

here’s an excellent youtube video showing positive health care reform happening NOW! of course, it comes from the market and not the govt. please spread it around.

http://www.youtube.com/watch?v=3su-_YVQXCQ

these retail health clinics lower costs and increase access to millions of americans.

Robert October 4, 2009 at 7:48 am

Hmmm. I used to put a lot of faith in free market ideals. That is, until I realized a few decades ago that there are no really free markets and given our current political system there never will be. The powerful (and I don’t mean the government here) will always find ways to bend the market to their own purposes, whether through the collective action (ironic isn’t it?) of market-rigging virtual monopolies or through lobbying the political class to legislate for their benefit.

I became disillusioned with the pursuit of free market ideals during the Reagan era. Back then, the goal was to reduce regulation and red tape, to free up markets and to drastically reduce the size and scope of government. Some of those things did happen, but at the same time two successive Reagan administrations piled up record levels of public debt, largely through failing to follow tax cuts with spending reductions. Military spending ballooned under Reagan and represented basically a sustained transfer of wealth from the shrinking public purse to the shareholders of large defense industry corporations. I believe the ‘acid test’ for what constitutes a smaller government is that it taxes less AND spends less. It should be obvious that these are both necessary conditions, and yet, more than once in the last few decades, I have seen this free market mantra truncated by administrations which are quite willing to reduce taxes and some government spending, but always manage to find ways to justify very large increases in defense spending.

In summary, I believe that as long as it is the case that the defense budget is apparently the ‘sacred cow’ of federal program spending, we will never progress towards a system of smaller government with less taxation AND less spending.

Aaron October 4, 2009 at 2:09 pm

You should add these in:

Sick in America (20/20 John Stossel Special )
http://www.guba.com/watch/3000089057/Sick-in-America-2020-John-Stossel-Special-

Involuntary Medical Servitude
http://mises.org/daily/3657

100 Years of Medical Robbery
http://mises.org/article.aspx?Id=1547

Real Medical Freedom
http://mises.org/daily/1588

Nick October 5, 2009 at 2:23 am

Shelly and Matt both mentioned Roderick Long’s article so I thought some might find this interesting. It’s a 1910 NY Times editorial attacking lodge practice as “evil”, “hampering medical progress” and of “depriving a large number of worthy and capable practitioners of the fruits of dilligence”.

Franklin October 6, 2009 at 8:00 am

Robert, you are correct that spending has run amok, and has done so even under the so-called selfish regimes in this country.
You do seem, perhaps I’m misreading, to slant the argment toward the defense spending side. No doubt this is “real money” to employ the old joke. But I’ve posted on this site and others, and so far have not been corrected, that total spending at the local, state and federal level, per capita, has risen under every administration for the past two centuries. And this is not just defense spending. Sometimes defense rises faster than non-defense. And sometimes vice-versa. After many years working to minimize (unsuccessfully, by the way) the municipal budgets for small communities in the stingy state of NH, I’ve seen many a sacred cow. And it ain’t always bullets.
I agree with the overall thrust of your post, nevertheless.
Cheers.
F.

sb101 October 7, 2009 at 3:53 pm

this is really the only article you need to read.

http://www.nytimes.com/2009/08/27/opinion/27kristof.html

Nick October 8, 2009 at 8:32 pm

this is really the only article you need to read.

You didn’t finish the thought.

Is it “the only article I need to read” if I want the story of how Wendell Potter decided he thinks crappy, government healthcare is better than crappy, corporatist healthcare?

Is it “the only article I need to read” if I need to be reminded why I avoid articles written by Nicholas Kristof?

Is it “the only article I need to read” if I want to read about the bad things insurance companies are able to do because the government has kept the market out of healthcare?

I doubt I’m going to guess what you meant.

Maybe this will be the only article you need to read.

Liberty Lover October 23, 2009 at 9:40 pm

You forgot this one

“Compulsory Social Insurance” by Ludwig von Mises
http://mises.org/daily/3647

Rob Colburn October 30, 2009 at 9:00 pm

NPR tends to be as liberal as it gets, but occasionally the produce some gems.

http://www.thisamericanlife.org/Radio_Episode.aspx?episode=391

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