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Source link: http://blog.mises.org/4182/katrina-and-socialist-central-planning/

Katrina and Socialist Central Planning

October 9, 2005 by

Watching the Capitol Hill hearings on what went wrong after Hurricane Katrina provided a glimpse of what it must have been like in the Politburo in the 1950s, writes Lew Rockwell. The Soviet bureaucrats would gather with the party officials and factory managers to figure out why grain production was down or why shop shelves were empty or why the bread lines were ever longer and the quality ever worse. They gathered under the conviction that they had a workable system that was being rendered unworkable because of the incompetence of certain key players in the chain of command. No one was permitted to say that the command system itself was the problem. FULL ARTICLE

{ 54 comments }

David White October 15, 2005 at 8:42 am

Charles,

You must first remind people that because the state is pervasive on every level — local, state, and federal — it’s all but impossible for the average person to imagine life without it, their tendency being to scoff at the notion. But as bad as the state is at handling pandemic’s (or anything else), it is difficult to imagine that society would fair worse without it. In any case, it would be in the interests of private health insurance companies to pool their resources regarding disease prevention and outbreak, such that their trade association, say, funded the necessary research and planning, respectively.

Would there be a free-rider problem? Probably. But as healthcare costs would be significantly lower in a free society — there being no state licensing, for instance, to keep incomes artificially high (e.g., http://mises.org/daily/1547) — many more people would be able to afford health insurance, especially since they wouldn’t have taxes to pay, only fees for services rendered in a competitive marketplace. Indeed, in a truly free society, incomes would likely be both higher and more balanced than they are in statist society, where the many are plundered by the few on an ongoing basis (look at the affect of 70 years of welfarism on New Orleans). There would also be vastly greater awareness of one’s responsibilities to one’s fellows. For while a free rider is not an outright thief, he is obviously taking advantage of others, who would not appreciate this fact. Thus, to be known by one’s fellow citizens as a free rider would tend to stigmatize that person accordingly.

One last point: Whenever I’m confronted with situations like this, I always remind people that while we can debate such issues until the cows come home, the plain fact is that we are like a bunch of physicists endlessly debating the theory of relativity because we aren’t allowed to conduct the necessary experimentation. That is, we can’t give free society a try because the state holds us at gunpoint, in abject defiance of the principle upon which THIS state was founded.

Get people to acknowledge that fact, and you will have already done the cause of freedom a world of good. For you will have gotten them to take the first step toward libertarianism, which to question the existence not of this or that state but of the state itself — what it is, where it came from, and how it perpetuates itself.

Then hand them a copy of Franz Oppenheimer’s “The State.” :-)

Paul Edwards October 15, 2005 at 11:41 am

Charles:

I just wanted to reiterate David’s point that the insurance companies would indeed be in the business of actually preventing damages. This is one of the great beauties of a free market with insurance in conjunction with the fields of protection, policing, the judiciary and medicine. The insurance companies are interested in the most efficient and cheapest way to maximize protection to their customers to insure to maximize profits. This leads to reduced costs for the companies and also the consumer.

The cheapest form of insurance is that kind that insures what can be to some extant and is to some extent prevented.

Another relevant and important aspect of concern your post brings up is the question of a “private medical company accidentally” infecting a large portion of the population with some disease. Here’s a quick contrast of the consequences with (a) negligent private lab, no government intervention in the situation, and (b) negligent government lab.

In the former case the class action law-suits against that company would likely ruin it and the company officials right up to the top, found negligent (I think). This would provide extra incentive to be careful if the company is doing work in this field. Also insurance companies would have a say in their safety practices if they wanted accident insurance.

In the latter case (government lab), a slap on the wrist might occur, and a low level technician might get fired or sent to jail (think “England sentenced to 3 years for prison abuse” no charges against Rummy), or perhaps nothing would happen. And whatever did happen that involved financial cost, you can be sure it is always the tax payer and not those responsible that pay the price. Government is self-policing (ha!). This represents a far more dubious incentive to be careful.

Deep down i think we all find the former scenario preferable to the latter.

Bob A. October 15, 2005 at 11:56 am

Maybe Charles Sterling will clarify this himself, but I think he might be wondering how his scenario would be handled in comparison to how the US government handled/is handling New Orleans and Biloxi after Katrina, i.e. the National Guard, FEMA, Army Corps of Engineers, using taxpayers to fund the rebuilding and relief efforts, etc.

“Imagine this scenario: New York City, assuming it becomes a free society, is struck with a pandemic of influenza because a scientist of a private medical company accidently broke the tube or someone is a carrier and brought the disease to the city. How would the city or/and individuals deal with the diseases.”

Charles Sterling October 19, 2005 at 8:52 pm

Thanks. I understand better. I appreciated your advice, David. You made a good point about the lack of “real world evidences” of free market society.

The more I think about my questions with the information you provided, the more I believe that the free market society can avoid pandemic because the market has a flexible to allow the individuals, companies, and the government to to prevent the outbreak and the individuals will strive for cost-effective methods to prevent a potential pandemic.

Thanks

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