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Where Government Beats the Free Market

September 3rd, 2009 @ 10:10 am

4 Comments

Categories: BNET, Productivity, economy

Tags: Health Care, Healthcare System, Vertical Industries, Benefits, Healthcare, Government, Human Resources, Stefan Deeran

A single-payer national healthcare system has never been on the table in Washington.  Even the so-called public option, which under Obama’s plan still accepts the premise of private insurers in the government-subsidized health marketplace, has been denounced as “socialism.” Republican spinster Frank Luntz has advised his clients to use the phrase  “Washington takeover” of healthcare to ensure that private companies can continue to profit off of America’s broken system.  Playing into America’s fear of “government-control” seems like a sure-fire way to win an argument.

But as Nicholas Kristof notes in a New York Times op-ed today, there are plenty of examples in America where the government has run things better than the private sector. Here is his brief list:

  • Firefighting: Private insurers used to fight fires, resulting in chaos and looting
  • Police work: If the security guard business were as powerful as the health insurance industry, then it would be denouncing “government takeovers” and “socialized police work”
  • Education: The single-payer system delivers free education to every kid in the country
  • Postal service: Well, you can debate that over here
  • Libraries: Again, education and information access to all at a small cost to society
  • Health care: 60 percent of those in Medicare rate it a 9 or 10 on a 10-point scale; only 40 percent of those enrolled in private insurance rank their plans that high

Do you agree with Kristof’s assessment?  Are there other sectors where the government could run things better than private firms?  Share your thoughts below.

Stefan Deeran consults environmental advocacy groups and businesses on their sustainability strategies and communications plans. He also publishes the online newsmagazine the Exception.
 
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    1

    Ian P

    09/04/09 | Report as spam

    RE: Where Government Beats the Free Market

    Let's look at an industry that was formerly universally free enterprise, but is now almost totally state controlled.
    The military.
    Used to be that there were private armies throughout the world and they were low-cost, effective and flexible. Europe was built on them. You had an enemy or even you just wanted more land then you called on your warriors, beat up the opposition and took what you wanted.
    Now we have nationalised armies. Huge monoliths spending a massive proportion of the nations wealth for extremely limited returns; Nobody will make a profit out of Afghanistan, no matter how many people get killed, Iraq has virtually busted the US treasury. Just watch 'Blackhawk Down' to realise what came out of Somalia wasn't worth spit.
    Nah, the time has come to privatise the armed forces, let true, naked capitalism decide who and when to fight.
    Allow whoever can pay to revitalise the art of war and make America great again.

  •  
    2

    United Systems

    09/04/09 | Report as spam

    RE: Where Government Beats the Free Market

    There's not much agrument with the above examples IMO.

    The problem is NOT with local government though. It's a federal thing. I don't want the leaders of our country to decide HOW we do things. That's not even in the job description of the Presedency or the Senate. The "FEDERAL" government should never dictate weather a given practice is socialized or privatized. It's the poeples decision... it's that simple.

    Local government is typically run by LOCAL people. It's more in touch with the demographics of the LOCAL pulse. Not every town has a library, or even a fire department for that matter. And when they don't, they most likley never WANTED it as a LOCAL people. When the LOCAL people decide they want something, they ask for it, demand it, and/or protest for it. Thats the VOICE OF THE PEOPLE... simple and FREE!!

    Thanks for the opportunity

  •  
    3

    reesie1960

    09/04/09 | Report as spam

    RE: Where Government Beats the Free Market

    I find it hard to believe that Kristof considers all of these as being superior because they are run by government; especially the education system. What a joke! Homeschoolers consistently score higher on testing than those in our wonderful, drug infested public schools, though they pay far less per student! $10,000 vs $500.
    http://www.clarionledger.com/apps/pbcs.dll/article?AID=2009908300332
    The private sector is plenty capable, and perhaps the reason people scored their government insurance higher has more to do with the fact that they aren't paying for it, than that the care is superior. The bottom line is that those systems are broken anyway, and are far from superior. They are allowed to run in the red because they can just print more money, when a private service would have had to close because of incompetence.

  •  
    4

    AZkjp

    09/04/09 | Report as spam

    Not much argument?

    United Systems, your local vs. federal point is spot on.

    However, the examples given in the article are easily debated.

    Take education, for example. It's debatable that everyone does get a free education, and the quality of public education is (supposedly) poor. Our poor comparison to other countries is a constant marketing ploy for more money. Yet, with more money come a fight against accountability by the teacher monopoly.

    The post office is another poor example. Private companies are well positioned to provide essential shipping services at a variety of service levels and price points. They do so profitably, and with (mostly) good customer service. Customer service through the post office is a crap shoot, and why would it not be, with the presence of another government union protecting the guilty. Now we are subsidizing a billion-dollar sink hole of a program that should be left to die by obsolescence (due to email).

    Finally, the police comparison is a red herring. Let me refresh Mr. Kristof's memory "establish justice, ensure domestic tranquility, provide for the common defense". Police and military are ingrained in the very fabric of our republic. To privatize these functions is so foreign as to be badly managed when attempted (Blackwater).

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