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Monday, June 15, 2009

Kill The Competition

Government controlled business is in effect unfair business practice. A business, regardless of size must be allowed to prosper or fail on its own. That's how capitalism works, and it's by far the best economic system in the world. When left alone, competition breeds the best solutions at the least cost. When government gets involved, competition is killed with the resulting poor product at increased cost.

This conclusion doesn't require a degree in economics. All that's needed is some observation. Fascism, communism and socialism are still present in the world today. A lot of those countries have failed economically, and the others have been left in the dust by capitalist societies. At one time the USA was leaving the rest of the world in our economic wake. Today other countries are catching up, and fast. China has grown economically partially due to low wages, but mostly because their government has allowed more capitalism. India may pass us in the very near future because of their governments hands-off capitalist approach.

Competition is a good thing. In the early 1970s the Big Three were making junk at a high price. The Japanese cars arrived with good quality at a lower price, and have been taking market share ever since. That was a good thing. If it wasn't for that competition we'd have a choice of only American made junk at astromical prices. The increased quality and more reasonable prices of the Big Three was a direct result of competition.

Any government controlled business has a big advantage. That business has no trouble making a profit for the ownership because, profit isn't necessary. It can literally undercut any competition because the taxpayer, through big government, will always pump in more money. The result is no competition which eventually means poor product because it doesn't have any reason to produce a good product. So what we end up with is a poor product at a high cost.

You think government health care is a good thing? All you have to do is talk to the subjects of most of Europe, Great Brittan or even Canada. There's a reason that those who can, come here for their health needs. There's a reason that Canada has black market clinics.

The reason we have high health care costs is mostly because the cost is insulated from the consumer. If it only costs $10-$20 for an office visit or test, why not have it done? Who cares? The doctor needs high traffic to pay for all the clerical work that's required due to insurance, so he's likely to recommend more than is required. Who cares? The consumer doesn't feel the pinch, not directly anyway. If the only health insurance available was major medical, the per person health care cost would drop dramatically.

Government health care will kill the competition, lower the quality of the product and increase the cost. That's happened every where else. I don't see a reason it won't happen here as well.

Despite what they say, it's not about fixing anything. Fixing something is the last thing politicians want to do. That would put them out of a job. To keep their jobs and maintain power they must say they're going to fix something, then not fix it. "Sorry, we'll do better next time". It's amazing how many buy into this BS.

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