05-06-2017, 11:18 PM
Free market works nice in economics101 textbooks, under a phone book of preconditions that are never met in reality.
Libertarians argue that this might be so, but government simply waste resources as there is no competition to keep wasteful behavior and practices in check.
Yes, however, there is a good deal of waste in the private sector as well. For starters, big corporations also work much like big bureaucracies, creating their own waste.
The less competitive and transparent markets are, the more the scope for wasteful behavior becomes. In US healthcare, there is massive price gouging by companies, massive overhead cost and waste, rent-seeking behavior etc. Compare that for instance to this:
Libertarians argue that this might be so, but government simply waste resources as there is no competition to keep wasteful behavior and practices in check.
Yes, however, there is a good deal of waste in the private sector as well. For starters, big corporations also work much like big bureaucracies, creating their own waste.
The less competitive and transparent markets are, the more the scope for wasteful behavior becomes. In US healthcare, there is massive price gouging by companies, massive overhead cost and waste, rent-seeking behavior etc. Compare that for instance to this:
Quote:If we are to be truly fiscally conservative, then single payer would be the only option that would be discussed. Medicare has a 3 to 5 percent overhead. There are no multi-million dollar executive salaries. There are no stockholders. There is minimal money spent on advertising and certainly none spent on lobbying. A simple glance at costs over the last few decades show very little rise in physician salaries but a giant leap in administrative overhead. Physicians have been overburdened with unfunded mandates and reporting and meaningless administrative hassles that take up the majority of our time and the joy out of medicine.Why are fiscal conservatives opposed to single-payer healthcare? | TheHill