RSS

Tag Archives: Obamacare

Why Obamacare Is Like A Government Smartphone

Engineering Thinking principle: comparative analysis

cellphonesWhen you make a decision to purchase an auto or a cell phone or a home, you have lots of choices, because you have a lot of companies competing for your business. You can compare features and prices — do a comparative analysis — and arrive at a rational decision of which is best for you. Of course, what is best for you may not be best for others, so having many options helps to ensure that most people can select a choice that best satisfies their particular needs and preferences. Comparative analysis leads to constructive competition.

However, when the federal government decides to set up a program such as Social Security, Medicare, or Obamacare, we have only one choice. This leaves us at a competitive disadvantage, since we will not be able to do a real-world comparative analysis of any other choice. This lack of competition not only restricts our freedom to choose, it allows to remain in place inefficient and even counterproductive programs, funded by the taxpayer whether the taxpayer likes it or not.

This is a major reason why the federal government’s activities should be restricted to essential national services, such as the military and foreign affairs. When the government gets involved in social services, the historical record indicates that the government’s approach, although it may seem compassionate and somewhat effective, is actually very inferior compared to free market alternatives, primarily because government is inherently inefficient (see “It’s Just A Systems Thing“).

In addition, the proponents of big government social programs never admit that their programs are deficient, no matter how poorly they perform; they always find something or someone to blame. (The Soviet Union routinely blamed “bad weather” for its abysmal economic performance during its almost 70 years of existence.) If Obamacare survives, this is why those who predict it will self-destruct are likely wrong: no matter how ridiculously bad it may be, the proponents of big government will find some excuse to keep the Frankensteinian monster alive. Without a competing program in place to prove the proponents wrong, the blame game will go on and on, just as occurred in the Soviet Union.

govtsmartphoneGovernment no-choice social programs are the equivalent of having a government smartphone plan, where your “choice” is limited to a single smartphone, designed and built by the government, available with only certain features, and at a fixed non-negotiable price. And you have to buy one whether you want it or not, or you will be fined or imprisoned.

For these reasons it is best to leave social services to the states, or even better to private charities, churches, and civic organizations (see “What Would Happen If The Government Didn’t Take Care Of Us?“). When alternatives exist, eventually those programs that perform better become known for their success, allowing them to flourish, while those that perform poorly by comparison become known for their failure, allowing them to die out, and be replaced by the more successful programs. More importantly, alternatives provide each individual citizen with the freedom and comparative knowledge to choose whatever is best for them.

-Ed Walker

 

Tags: , , , , ,

Healthcare: Ask The Wrong Question, Get The Wrong Answer

“There’s a sucker born every minute.”
-P. T. Barnum

Engineering Thinking teaches us to challenge our assumptions, because if they are wrong, then our subsequent analysis and decisions will be wrong.

The healthcare challenge — it is commonly assumed — is this: how can the government best ensure that the weakest members of society receive adequate health care?

This is the wrong question. The reason it is wrong is that it is based on the flawed assumption that the government should be making our health care decisions. As discussed previously (see “Feedback, Prices, And Sullen Spouses“), the government is inherently inefficient, and is therefore the last organization that one should ever select to provide a service.

But what is the alternative?

First, remove health care from the tasks assigned to governments at all levels: federal, state, and local. This will substantially eliminate the tremendous waste of dollars caused by having inefficient bureaucrats positioned between patients and their doctors, and — just as importantly, if not more so — eliminate the moral hazard created by providing “free” services to those who may not deserve them, at the expense of diligent and hard-working taxpayers.

So who takes care of the poor, the unlucky, the out of work?

We do. But we do it through our local communities, through our churches and charities and civic associations. This was done before the advent of Big Government and worked well (see “What Would Happen If The Government Didn’t Take Care Of Us?“), and it can work well again. Local communities will be able to evaluate best who deserves help and how much and on what terms, eliminating the moral hazard. The rest of us will continue to pay for our own medical coverage. Government’s function will be reduced to its proper function, that of ensuring that insurance companies operate transparently and honestly in a competitive environment.

Does this sound simple? It is simple. Politicians and their special-interest allies (whose prestige and livelihoods depend on fooling you into providing your tax dollars for their grand and impractical ideas) would prefer that you think that all of this is too complex for you to understand, and that fairness can only be assured by putting your faith in the government.

Are you not yet convinced of my analysis? If so, I doubt I can change your mind, and respect your right to your opinion. But I would ask you one question:

Have you ever been asked by a relative or a friend for a favor, such as loaning them some money? If so, I’m sure that you based your decision on your personal knowledge of that friend or family member. But what if someone on the other side of the country that you don’t even know asked you for a loan? Would you give it to them? No? Then why on earth are you so willing to give your tax dollars to anonymous bureaucrats to give to anonymous people who may or may not deserve those hard-earned dollars?

-Ed Walker

 

Tags: , , , , ,