Shouldn’t the Poor have Health like the Rich?

by Taft Babbitt on December 21, 2009

 

A friend asked me the other night why I don't think poor people should have the same health care as rich people.

First, I think the question implies a false premise, which is that we can create a system that would in fact give poor people the same health care that rich people have. That is false. Rich people, and I would venture to say that in this case this is the majority of Americans, get fantastic health care because they can pay for the best and because the free market is incented to provide the best to make profits, i.e. a free-market system. True there are many flaws in the landscape of the free market in the health care world – in many ways it is not as free of a market as say retail goods are but let’s set that aside for a moment.

The brief answer to the question that would be more accurate is this. Of course I, like everyone, wish that all people had the best health care, and health insurance. I also wish that everyone had a fabulous house, car, food, friends, etc. However, I do not believe it is possible to provide everyone with all these wonderful things without sacrificing something else I hold more valuable, liberty. I believe that Liberty trumps Equality. I believe that the reason this country is great is not because we strive for economic equality but economic liberty. I believe that the government should not be the provider of goods and services; I believe that to be the role of individuals and free enterprise. I believe the government’s role is as regulator to ensure that the relationship between providers of goods and services and the consumers of goods and services does not become exploitive and abusive. To entrust one entity, i.e. the government with both roles of provider and regulator is a very bad idea. I believe Big Government is more dangerous than Big Business. I have no faith that the government who faces no penalties for not controlling quality, fraud, or budgets and have shown absolutely no historical record of doing so would by some miracle do so now. I do not believe they are being honest when, for example, they say that they will cut Medicare by hundreds of billions of dollars to help fund this new or expanded entitlement when they have passed similar mandates upon themselves before wherein they have decreed a Medicare budget cut and never once actually made the cut even though it meant budget and cost overruns in other programs.

I believe that many solutions proposed by politicians are most often poor for many reasons including: politicians are usually under educated in the problem area, they are fed highly biased information from lobbyists, also politicians are motivated not by a desire to provide the best product/service to the consumer in a cost effective manner – but to get re-elected and secure campaign financing. An example would be the idea of preventing insurance companies from denying those with pre-existing conditions. Sounds wonderful at first glance, it’s a terrible idea because no one would get insurance until they got sick, they would be a fool not to (imagine if you could get car insurance after the accident and they would have to pay for the repairs). The only way to fix this dilemma is with a national mandate to force everyone to buy health insurance. Unfortunately this is unconstitutional; the government doesn’t have the power to force everyone to purchase an item simply because they are alive, no matter how well meaning. The rights of the government are enumerated in the constitution and those who believe in un-enumerated rights are opening the door to a world of massive government control. Some say how they can mandate car insurance but not health insurance. Car insurance is based on regulation of an interstate commerce privilege of car ownership (covered under the interstate commerce clause). You can regulate privileges, you cannot regulate rights (with the exceptions of in the case of protecting the rights of others). Some argue that healthcare or health insurance is a right. This is absurd. They clearly do not understand the difference between a right and a privilege.

What people don’t appreciate today is that as government gets bigger the individual gets smaller. Every time the government makes a new rule they have taken a decision away from the individual. The more you restrict people’s agency the more you restrict their ability to learn and grow. No other nation has had Liberty (i.e. Agency) as so core to its being as America has, and as governments and entitlement programs grow we change more into a culture like Europe that does not value Liberty of the individual as core to its identity. Equality and fairness under the law is important, equality and fairness economically is a utopian dream that in order to obtain the liberties of the individual must be sacrificed in part or whole depending on how far the dream is to be pursued.

I, like almost everyone, agree that the current system is broken and needs fixing. The status quo is not acceptable. However, our nation needs documents that are built upon principals like our founding documents, our founding fathers formed the entire federal government with a handful of documents – 2,200 of health care pages that only lawyers can understand tells me they are creating a structure more like the Internal Revenue Tax Code. A document that in my opinion is not a document that enhances liberty and agency, but rather enlarges the government and empowers the faceless bureaucrat. Documents like this reduce, restrict, and strangle the individual rather than celebrating and empowering him.

Bookmark and Share

Big Government is more dangerous than Big Business

by Taft Babbitt on October 12, 2009

 

We humans consume a lot of goods and services: cars, homes, food, healthcare, vacations, tech support, security systems, electronics, movies, video games, and the list goes on and on. We have three places to go to in order to get these needs and wants fulfilled. First, we can provide them for ourselves, make our own car, grow our own food, etc. Some items are more practical than others to provide for ourselves. Second, we can purchase these goods or services from a business that provides it. Lastly, we can get the good or service from the government.

Providing for ourselves is a wonderful route to take when possible and practical. But in modern society it is often not practical to provide for ourselves in all the areas we desire. Building our own car, for instance, while very impressive would be impractical for the majority of us. The big question is what is the trade off between turning to business or government to be a provider of goods and services? When we enter into a relationship with a provider of a good or service there must be power on both sides of the relationship to ensure that one party does not exercise undo influence on the other. If one side gains too much authority the other party can be abused or neglected in ways that are inappropriate.

Given this, here are the reasons why keeping our goods and services in the hands of business rather than government is better for the people:

  1. Business cannot compel someone to purchase. Business cannot pass laws which would require a citizen to become a consumer of any given product or service. Governments have the power to pass laws requiring citizens to act in certain ways.
  2. If business sells a harmful product a citizen can appeal the matter to courts for retribution. Businesses are incented to avoid this costly event which could put them out of business. Governments are difficult and sometimes impossible to sue. Governments have no incentive to avoid this because the tax payer will foot the bill for the defense costs.
  3. If I fail to pay a business they can cancel my service, take the matter to court to recover costs, or reposses the product. Government has the ability to imprison me for such offences. Government has the power of the police force at their disposal. This service costs them nothing to use; it is fully funded by the tax payer.
  4. Businesses are incented to be cost effective and efficient. If they are not able to offer a product or service worthy of buying and do so in a way that allows them to make a profit, then they will go out of business. Government has the power of taxation. Government is unconcerned with being cost effective or running deficits and debts now and in the future. There is no penalty for doing so. Whereas a poorly run business can and will go out of business the government cannot.
  5. Business can be regulated by government agencies without a conflict of interest. In this way the government can act as an advocate for the citizen ensuring ethical practices by the business. Government has a terrible record at regulating itself. This is due to the pervasive political nature of the organization. Everything in the government involves politics and partisanship. The government will rarely be effective at regulating itself on behalf of the citizen, its own interests get in the way.
  6. The possibility of making profit incents many people to create businesses that compete with one another in the attempt to gain the patronage of the citizen and thereby make profits. This creates the marketplace of choice wherein many flavors, styles, and sizes are created by many businesses. This allows the consumer to find the best product or service available for their needs and wants. The government does not have this motivation. Since the government cannot be put out of business they have the ability to offer only those products and services they want to, regardless of the desires of the consumer.

There is a very important role for government – to protect and preserve the rights and freedoms of the people. The government should do this from enemies foreign and domestic. The armed forces and intelligence agencies should be focusing on enemies foreign and other government agencies like congress, the courts, the FDA, the FCC, and many others should be focused on domestic enemies including businesses that would participate in unethical practices. This will allow ethical businesses that are seeking fortune through innovation and efficiency to thrive. This would keep the critical balance of power between those who consume goods and services (the people) and those who provide goods and services (businesses) and keep those who should be representing and protecting us (the government) from having conflicting interests and politicizing the marketplace.

Bookmark and Share