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Mike Winther gave this lecture at an IPS Economics Conference in January 2009. He makes a case for free market healthcare. Mike talks about the dangers of socialized and government-managed healthcare. He also shares why the free market approach is superior, and principle-based decisions create the best outcomes.
We learn why the government is the problem, not the solution, when it comes to healthcare. Mike gives us a quick refresher on government systems and explains how there are only two systems worldwide with varying degrees of variation. These systems are the free market and socialism.
He also explains why socialism is inefficient and how it reduces productivity and causes poverty. Mike talks about two things you can use for a test to discover socialism. If either one exists, there is some form of socialism. Mike talks about insurance, taxes, regulations, what would make our system better and what we can do to improve things.
You’ll Learn:
- [03:49] “The truth is that the problem is the government, not healthcare. All of the current problems in the medical marketplace, hyperinflation, millions of uninsured Americans, and excessive administrative costs all carry a made in Washington label.” Edward Annis
- [04:19] Government intervention is behind all of our healthcare problems in the medical marketplace.
- [04:45] There are only two economic systems in the whole world. They are the free market system and socialism.
- [07:01] There are two qualities that identify socialism. 1. Government control of capital. 2. Forces redistribution of wealth. Either of these two qualities are a sign of socialism.
- [11:48] Socialism is wrong because it requires forced redistribution of wealth. It’s a violation of property rights.
- [15:11] On the Practical side socialism is inefficient. It reduces productivity and causes poverty.
- [17:21] Does the importance of a service make it less applicable to the laws of supply and demand?
- [18:17] The price of any product is based on supply and demand. We can increase or reduce a price by increasing or reducing demand.
- [23:32] Freedom of choice of the patient and doctor are reduced with third-party payers. Third-party payers also add expense and bureaucracy.
- [26:02] When prices are allowed to float, supply and demand find a balance.
- [28:09] There’s more poverty when the government redistributes wealth.
- [29:48] An increase in the price of medical care created a whole new class of Americans who couldn’t afford medical care.
- [31:51] Insurance is best when it insures unlikely events.
- [36:47] People should cover their own small expenses with health care costs.
- [40:31] Government insurance is even less efficient. Things we need to consider include changing our tax law. Tax free employer-paid health insurance is encouraging people to make bad health insurance decisions.
- [42:17] Solution #1 get rid of tax incentives. Ensure big events, not small events. #2 Reduce government regulation for medical schools and licensing.
- [47:23] Increasing the supply of medical care would also increase the quality.
- [47:48] Medicare and Medicaid are government entitlements.
- [48:46] We don’t even realize the Socialist thinking in our society, because it is so ingrained.
- [49:31] These government healthcare programs won’t fix the problem, because they mess up the supply and demand.