A Fidget Spinner Without a Plan

If you are a parent you certainly know what a fidget spinner is. They are everywhere. A year ago no one had even heard of them. Yet, walk into any gas station and you’ll find them displayed right out in front. What happened? People started buying and companies started supplying without any guidance or plan. Money was to be made! This is the beauty of the free market. It perceives what people want and then others move in to supply that demand.

So why, in any problem related to the public good, do politicians and the media clamor for “a plan?”  Why do they go endlessly in search of a plan that will fix infrastructure, public education, healthcare or whatever needs correction? Why does there always have to be a plan? Why don’t we deal with issues the same way the market dealt with fidget spinners?

Healthcare has been contentious for years. Admittedly, a certain segment of the population was uninsured or un-insurable (albeit it a small one proportionally speaking ). So, the politicians decided to come out with a plan to fix it. The Affordable Care Act (so misnamed!!!…also dubbed “Obamacare”) was forced upon us all so that every person in the U.S. could get insurance. So how come even with a law and a plan, there are still millions without insurance?

One of the key parts of the Obamacare plan was to insure people who had pre-existing conditions. Previously, one of the biggest criticisms about insurance is that if you had cancer no insurance company would cover you. The often unpalatable reality is that this is exactly how insurance works. Insurance is defined as “A practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.” If you already have the loss (i.e. cancer) it is not an insurable item. This is no different than someone getting into a car accident then attempting to buy auto collision insurance after the fact then demanding damages and/or loss payment from the insurer!

The sales pitch was that with the Obamacare plan, even those with a pre-existing conditions would be covered. However, this is not insurance. Its a subsidy. Someone else must provide the funds to pay for a subsidy which is, essentially, a give-away. Those burdened with that obligation, it turns out, are people who get sick the least and have the least amount of money…the young.

(Lest anyone think I am hard-hearted, such an approach can include provisions for that relatively small number of persons truly destitute or who have pre-existing conditions.  Its simply a scare tactic and red herring to say that if you are opposed to government run healthcare you want to see the poor, sick and elderly die. In fact, if you’re opposed to greedy, lying politicians making personal life decisions for you and others, you’re probably more rational, informed and compassionate than not).

The young, to whom I refer,  are finally beginning to understand their economic predicament as it relates to Obamacare. The  have begun to revolt. Yet, last week,  Congress n its infinite wisdom, refused to repeal Obamacare. Naturally, Obama along with many other Democrats, was elated. Most of the media critiques went like this: “The Republicans hate Obamacare but they have no plan of their own.”

The success of Obamacare rests on the young but they don’t like paying for things they don’t use. Look at the cable business which relies on bundled services. Cable subscriptions are in serious decline because the younger generation hates paying for one hundred channels when they only watch six. They don’t understand why they are paying to watch M.T.V and the History Channel, for example, when they only watch H.B.O. They get it. They only wanto pay for things they use. Well,  Obamacare, like cable TV,  is premised on the notion of bundled services. If they are already unwilling to pay $30.00 a month for HGTV, what makes the proponents of Obamacare think they will pay for healthcare services for people they do not know and services from which they receive no benefit?

The members of the mainstream media are also big proponents of getting the government involved to fix the issue and selling the plan to the public.

Sixty Minutes entire show format revolves around investigating  problems that society can’t solve and then asking why nothing has been done to fix them.  John Stossel, the libertarian pundit on Fox started off as a Left-leaning journalist reporting on the evils of big business just as Sixty Minutes still does. He would do reports on how these entities had failed the public at large and needed to be reined in. Plans and government regulations needed to be expanded to fix whatever the issue was. But as time went on, Stossel realized that he was the one causing the most damage. He came to the conclusion that over time free markets correct and provide the needed product or service at the best price. No amount of reporting he did ever solved the problem.

Perhaps the real fault in government plans is that those elected to Congress who devise them have rarely ever run a business or successfully worked in the private sector. They are novices, at best, and ill-equipped to deal with the realities and practicalities of what it takes to supply goods and services.  The premise that government needs to supply “plans” to fix the problem is a false premise that always results in loss of individual rights and freedoms.

In the real world, individuals faced with a problem in their lives needing a solution tends to figure it out for themselves. No group meetings, no theory, no pilfering of someone else’s financial resources to solve their problem.

Markets aren’t perfect. But history verifies that nothing distributes scarce resources more fairly and efficiently than free markets. We already have government run healthcare at the Department of Veterans Affairs Hospitals and it has failed miserably. Let’s put patients in tandem with their treating physicians in control of healthcare and let freedom work.

 

Steve

sleeclark@gmail.com