The American Free Market Healthcare System Is Socialist

by Luna Flesher

Opponents of healthcare reform fear socialism.  And rightly so.  They list a host of problems that other socialist systems have seen.  While some examples are unrealistically exaggerated, their underlying point is well-taken.  Socialism, no matter how well intended, suffers from a number of unintended consequences.

The intention of collectivism is to provide equality, but the frequent result is that everyone is equally deprived.  No one is allowed to have more than anyone else.  Motivations become skewed, producers produce less, consumers consume more. Bureaucracy increases with the intent to stop fraud and abuse, which leads to increased inefficiency.  The least common denominator is prized because it is something everyone can agree on.

The Soviet Union is one of the best examples of this cycle, when it inevitably collapsed under its own weight.

A hat tip to my socialist friends out there. Yes, I know the USSR didn’t practice “true” socialism. But I still make my claim — any collectivist system of more than 100 people will generally suffer from similar symptoms.  When properly balanced, those issues can be stabilized and mitigated somewhat, but they are real problems that need to be recognized for what they are.

Socialized medicine is criticized for the following reasons:

  • Overall costs are rapidly driven up by lack of market forces.
  • Providers, manufactures, and other achievers are not compensated enough.
  • Choice becomes limited.
  • Care is rationed.
  • There are long waits for care.
  • There is a high level of bureaucracy leading to inefficiency, frustration, and corruption.

Most socialist healthcare systems in the world today show at least some of these problems, to one degree or another.

Previously, I posted about how our healthcare system is in crisis.  Our free market system is supposed to be immune to these problems.  Yet I’m noticing a strange correlation.  We are already experiencing all of the issues listed above.  How can this be?

Correlation is not causation, but I had already reached this conclusion a number of years ago for different reasons.  I briefly made this claim elsewhere in this blog, when I argued for government intervention, but did not have room to make my case.

My conclusion?  Health insurance is socialist.
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Published in: on August 24, 2009 at 11:15 pm  Comments (2)  
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