Comments on: The Market Doesn’t Ration Health Care

By: The American Conservative » TGIF: The Market Doesn’t Ration Health Care

Sat, 06 Feb 2010 00:52:35 +0000

[...] The rest of my latest TGIF column is here. [...]

By: John B

John B — Tue, 18 Aug 2009 09:28:50 +0000

Yes, excellent writing in the accurate use of words to describe ideas and concepts.
Unfortunately reification is what we do all the time, and yes, is the probably the cause of the deception in which we live.
Words were ‘given us’ to conceal our thoughts. Laws of nature. The theory of evolution itself is based on reification (where there is purposelessness, things remain without purpose) so how did ‘it’ happen?

By: The End-of-Life Rigmarole | Anything Peaceful

The End-of-Life Rigmarole | Anything Peaceful — Fri, 14 Aug 2009 02:21:47 +0000

[...] the way, do not accept the glib comeback that the market rations too, only by price. As I point out here, the market does not ration. The market is not a conscious, decision-making entity. It’s a [...]

By: FarSide

FarSide — Tue, 11 Aug 2009 21:08:54 +0000

You start out by saying the free market is the best way, and then basically say since we don’t have it then we should then make it REALLY not free. Medical/insurance companies can only accomplish the things you state BECAUSE of the government.

You really think that there’s no one out there that could see a huge opportunity for selling cheaper insurance and getting lots of customers? In some states, there are laws that prevent insurance companies from selling catastrophic-only insurance – even if that’s all you wanted.

You then go on:

“(1) Free market pricing. Outlaw any requirement of medical school. Outlaw medical licensing by the government. Outlaw insurance, and outlaw the use of credit cards. Patients pay in cash. If you have no cash, you die, which under the market will reduce demand and thus prices for the rest of us.”

Outlawing methods of interaction between the payer and the payee is not in any way compatible with “Free markets”. You are creating a mythical option that doesn’t follow from your argument, nor make any sense.

By: Leef

Leef — Mon, 10 Aug 2009 15:21:41 +0000

Sheldon…a great article. I even learned a couple of new words, “Reify” for instance. Had to look it up.

Unfortunately, many voters are even less able than I. I’d like to see more such articles but aimed at the voter! This one seemed aimed at academics and politicians and those of us who follow this debate closely.

By: Dr. Steve

Dr. Steve — Sun, 09 Aug 2009 17:16:57 +0000

Jan, what WSJ article were you reading? The one I read said how doctors were complaining about services being restricted. People want free parking at the hospital! They want everything “free”! The system is in the red like our medicare/medicaid etc.
If Truman, or FDR before him, or Teddy Roosevelt had gotten their way you would not have the best sickness care in the world. Or if maybe it was the “best” it would not likely be the standard it is today.
Sheldon, what is our total spent for food, shelter, clothing, and sickness care as a percent of GDP or household income, or personal income? I suspect we in total pay less for these. Our high standard of living( if we can keep it) allows us to elect to spend for better care because we want it and spend less for the other needs. This figure as a percent of after tax income is likely even better compared to the so called enlightened nations.

By: Jan Rogozinski

Jan Rogozinski — Sun, 09 Aug 2009 12:03:00 +0000

The “market” is the most efficient means of matching supply and demand and setting prices–or at least that we kNow of today.

Unfortunately, we do not have a market in medicine in the US. Instead of using the market, medicine is both priced and totally controlled by insurance company bureaucrats whose sole goAl is to enjoy princely salaries and lavish perks.

In most states, there are only one or two companies, so they effectively have a monopoly. And the regulators have been taken over the regulated.

At the present time, there is the worst possible combination. Physicians and patients have nothing to say about medical care. The insurance companies set prices at their maximum. And they ration health care in a rigid manner. So the USA today has the most expensive health care and the worst health care results of the 30 richest nations.

Any one that defends the present system is either insane or a bought flack of the insurance companies, and he or she is totally opposed to the free market.

There are only two choices that would prevent rationing and minimize costs.

(1) Free market pricing. Outlaw any requirement of medical school. Outlaw medical licensing by the government. Outlaw insurance, and outlaw the use of credit cards. Patients pay in cash. If you have no cash, you die, which under the market will reduce demand and thus prices for the rest of us.

(2) A single payer system such as Medicare for all, with controls only for fraud

IT IS INTERESTING THAT IN FRANCE, WHERE THERE IS NO RATIONING AND (UNLIKE IN THE USA)PHYSICIANDS AND PATIENTS HAVE SOMETHING TO SAY ABOUT CARE,MEDICAL CARE COSTS MUCH LESS THAN IN THE USA. Also according to Friday’s WSJ, costs have gone up 115% in France during the past 20 years, while in the USA they have gone up 165% during the same period.

It is clear that if Truman had succeeded in getting universal health service, medical costs would now be half or less what than they are today. A government-paying system is the sole system in which rationing never can be needed.

I used to like the old Pat of the 1990s. So I became a charter subscriber of TAC. However, if you keep publishing stupid lies like this article, I certainly will not renew my subscription.

By: Khalid Siddiqi

Khalid Siddiqi — Sat, 08 Aug 2009 16:55:45 +0000

The ideas about government that you Americans have are hypocritical. When your house is on fire, govt. help is good; when someone breaks into your house govt intervention is good; but when the govt wants to take away your guns, it is bad. Health and drug companies want govt out of their business, but please govt, help me protect this patent so I can make billions. As if two researchers can’t come up with the same chemical compound to cure pain. Govt is good when you want to steal oil and gas from other countries, but bad when they tax oil and gas. Govt is good to protect ships from pirates, but bad when they regulate rates.
Most of the “robber” barons made their money with the help of the government, but when the common populace seems to be benefitting from the govt’s largesse, govt is bad.
Lets get govt out so we can freely download music; import drugs; sell fake Gucci bags and pirate Microsoft Office.

By: Steve LaBianca

Steve LaBianca — Fri, 07 Aug 2009 21:37:21 +0000

Overall, this is an excellent challenge to how the so-called debate is framed by the bureaucrats. If it is generally accepted that the debate is between “rationing” mechanics, it seems a slam-dunk to me, as greedy businessmen are goats, and government bureaucrats are heroes. Which mechanical “rationing” will people get on board with?

That is why a re-defining of the accepted terms is necessary, and Sheldon Richman has done a masterful service by setting the definitions straight.

I do have one minor point of disagreement . . . “distribution”, Sheldon says this word is “another inappropriate word when it comes to describing the market process.” I disagree, as a distribution doesn’t necessarily presuppose that it is centrally planned, rationally done, or in the hands of one or a small number of “distributors”. Unlike “rationing” (where in a free market, goods aren’t rationed) goods ARE in fact distributed. Who decides on that distribution is extremely de-centralized, and decided by individual market participants.

By: Chip Ross

Chip Ross — Fri, 07 Aug 2009 18:22:06 +0000

Sheldon, this is a brilliant article. You are right that the market does not ration anything, including health care services. It simply offers individuals an opportunity to exchange what they have for what they prefer.

You are also right that more precise language would improve the quality of discourse and might lead to better outcomes. But certain word and phrases conveying false or misleading ideas are already firmly implanted in the minds of many people, and those who would control the allocation of resources and privileges have no interest in using correct terminology.

By: Heidi Clawson

Heidi Clawson — Fri, 07 Aug 2009 16:12:05 +0000

It’s great to hear a rational word. Every word of truth helps to dispel an untruth or misconception. Let’s not give up the liberties of free-choice that our forefathers fought so hard to establish.

By: Dr. Steve

Dr. Steve — Fri, 07 Aug 2009 16:00:03 +0000

Good article, but since most educated by the public system have little background for understanding your argument and a 30 sec. attention span, it comes down to the government rationing or the market and who do you trust? Don’t stop trying, however.

By: TGIF: The Market Doesn’t Ration Health Care | Anything Peaceful

TGIF: The Market Doesn’t Ration Health Care | Anything Peaceful — Fri, 07 Aug 2009 15:24:06 +0000

[...] The rest of TGIF is here. [...]

By: Barry Loberfeld

Barry Loberfeld — Fri, 07 Aug 2009 14:48:46 +0000

“Rationing” refers to government’s doling out pieces of the same pie, since there is no longer any market that allows for the baking of new pies, i.e., industry growth of the product/service. This is the meaning of socialized medicine.

By: The Market Doesn’t Ration Health Care « thak’s cool links

The Market Doesn’t Ration Health Care « thak’s cool links — Fri, 07 Aug 2009 14:38:22 +0000

[...] Foundation for Economic Education » The Market Doesn’t Ration Health Care. Another great article that explains the difference between the real free market and what is called the free market. As the great ones have said–”the market is a process”. [...]