Guy walks into a meat market and asks the price of 90% lean hamburger. “$6.95 a pound” says the butcher behind the meat counter. Guy says, “Hey, over at Joe’s Meat Market the price is only $4.95 a pound!” Butcher says, “OK, so you’ll buy it from Joe’s.” Guy says, “Well, Joe’s all out of hamburger.”
Oh, the butcher says, “When we’re all out ours is only $3.95 a pound.”
That’s a story to show how a free market allocates scarce goods by the price factor. Right now a lot of things people by every day are costing a lot more in areas hit by hurricane Irma. The price of batteries, bottled water, gasoline, etc. have gone way up, sometimes through the roof it seems. This is how the price system prevents such severe shortages from occurring so that ordinary things you need don’t become unavailable. The price may suddenly be much higher but you’ll still be able to get what you need. If the price remained the same every seller would soon be all out and you’d get nothing. If you really need it that’s not a good result.
The first thing people might think is that the seller is taking advantage of the storm by gouging customers. It’s probably not gouging. It’s just the price mechanism of a free market allocating scarce resources. It’s more efficient a more fair to everybody than it would be if the government started rationing.
Think about how this law of supply and demand and price affects healthcare, and decide it you really think it’s a good idea to have the government in charge of it. In the case of health care something perverse happens when the government is in total control. The price goes up and you still may not be able to get the health care you really want and need. Obamacare has already created a system where most people cannot get the health insurance they want and can afford because the government if forcing us to buy and insurance companies to sell only one or two types of coverage that doesn’t fit most people needs at a price they can afford.
A free market in health care and health insurance would fix all that. Politicians wouldn’t be able to claim the credit so I guess it won’t happen. So why are they escaping the blame for lousy system they’ve forced on us and won’t allow to be changed?
24.8 million Americans are enrolled in high-deductible insurance plans. They can’t afford the premiums and even if they get government assistance in paying the premium they can’t afford the deductible. The can’t pay the deductible, so the insurance is worthless to them. Who benefits from this madness? Yes, you guessed it: Insurance companies. You don’t have to stage an armed robbery of Fort Knox if the government has a scheme to just give you money out of the public treasury.
Always ask who benefits, and who gets screwed, and you’ll know what’s really going on.
Meanwhile, John Kasich and John Hickenlooper push for an initial $15 Billion bailout of Obamacare. You don’t have to be a genius to see that this is really a bailout for insurance companies. It’s also a war on free markets. Adam Smith, precocious child of the Scottish Enlightenment, argued correctly in 1776 that crony capitalism, which is what all bailouts amount to, is not capitalism because it destroys a free market. Insurance companies will be grateful for this candy but their joy will be short lived when they realize that any bailout of Obamacare is in reality the kickoff to single payer and the complete destruction of private insurance markets. Obama must have a big grin on his face about now.