When a single corporation maintains a 100%
market share in its industry, most of us would
consider it a monopoly, free of competition and
thus detrimental to economic progress, innovation,
and human needs.
In California, State Senator Sheila Kuehl
proposes such a system. The Democratic lawmaker
seeks to force all the state's health care sector
under the authority of the state
government. Doctors' fees and pharmaceutical
prices would be set by the state. Health care
would be rationed. Private insurance would be
illegal. Kuehl's plan, SB840, also known as the
California Health Insurance Reliability Act, would
be financed by a new 12% payroll tax imposed on
workers and their employers.
Proponents of socialized medicine believe that
government-controlled health care will cut costs
and make medicine more available. But if it would
indeed run more smoothly and inexpensively, why is
it necessary to forbid—by threat of fines
and imprisonment—private insurance? Kuehl
and her supporters might realize that the market
would provide something that the state-rationed
health care system won't. Why else seek to use the
violence of the state to crush market competition?
When top executives collude in smoky rooms to
set prices, to strong-arm their competitors, to
ration their services in concert, it is considered
monopolistic. If the government is among the
corrupt players in that same smoky room, offering
the force and color of law to the collaboration,
it is considered "single-payer health
care."
Indeed, government is the greatest monopoly of
all, the protector of all others. It gives favored
companies special benefits and punishes less
politically connected firms. It uses regulation to
stifle small businesses and innovation and
entrenches economic power in the hands of the
few.
The most prominent private interests don't go
away—they are only further absorbed into the
protectionist system. It was Ted Kennedy's HMO Act
in 1973 that empowered HMOs, by forcing employers
who offered health insurance to their workers to
include HMOs as an option. It is the Food and Drug
Administration that protects Big Pharma from
competition by erecting formidable barriers to
entry—a small company cannot afford the
hundreds of millions of dollars in bureaucratic
expenses to bring a new, potentially life-saving
drug to the market. It is no surprise, then, that
such regulatory bodies are typically headed by
former and future CEOs of the industry that they
are legally empowered to police.
The most recent example is President Bush's
gargantuan Medicare prescription drug
benefit—at once the largest expansion of the
welfare state and one of the biggest giveaways to
Big Business in recent decades.
A steady move toward corporate socialism has
propelled the exorbitant rise of medical costs in
America. The proposed solution, even more
consolidation of money and power in the hands of
the politically connected, cannot solve the
problem.
Small businesses,
doctors who wish only to help their fellow humans,
patients, and alternative medicine practitioners
will suffer. Countries with socialized medicine
are learning all this the hard way: surgeries are
doled out according to crude predictions of how
much patients will pay in taxes before they die,
patients must wait two years for a routine hip
replacement, and desperate refugees flee to buy in
foreign nations what is prohibited in their own
country. The answer is to deregulate, desocialize,
decorporatize health care, to allow consumers to
make their own decisions, to strip away the
privileged status that the health care
establishment enjoys from discriminatory licensing
laws and regulatory agencies.
Fifty years ago, America had the best health
care system in the world, until the federal
government moved in, pushing out the free,
voluntary health clinics that had graced nearly
every city and major town in the country. Today's
politicians recognize the problem that they've
created, and yet instead of walking away and
allowing the market to achieve the same magic as
it does in the other relatively unregulated
industries—such as computers, electronics,
grocery stores, and the various wonders of the
modern economy—they propose more centralized
regimentation. Only a free market can liberate the
people to serve one another's needs, through the
market and charity.
Monopoly is inefficient and inhumane, as
liberals recognized throughout the 19th century as
they battled against the Big Business–Big
Government partnerships in railroads and
industry. Nowadays, monopoly is considered the
salvation of the common man. Just because ideas
change doesn't mean economic laws do. Socialism
and monopoly create inefficiency, rationing,
shortages, and higher costs. We must reject the
total monopoly in California's medicine that Kuehl
wishes to impose upon us—for the sake of our
health.