no third solution

Blogging about liberty, anarchy, economics and politics

Socialism is War Against Community

December 15th, 2008

When things become socialized, other people start telling you how to live. The justification is often, “We’re paying for such-and-such, therefore we get to determine how it is provided.”

Often, a very similar argument is used in favor of socialization in the first place: “The consequences of not providing such-and-such now, will cost us twice as much in the future.” An example would be, as my friend Shawn likes to argue,

If we don’t provide a base level of care for people who can’t or won’t provide their own, we’ll end up paying even more once those minor injuries turn gangrenous and limbs have to be amputated, etc.

Facially, it sounds accurate, and this is why most people have a hard time with such arguments: they can’t cut through the bullshit.

First, the argument poisons the well, with the presumption that, because I’m against State-sponsored health care for the poor, I am invariably against all health care for the poor. Secondly, and perhaps more importantly, it is an entirely wrong argument in the first place. The argument simply assumes without question, that everyone else should and will pay for other people’s problems.

Nobody ever challenges, “Why are we forced to pay for other people’s problems at all?”

As we inch towards Health Care socialism, there are a number of areas where this might become evident. I predict that as the market for health care solutions becomes increasingly socialized, and if the Government ultimately implements the “single payer” model, in addition to those necessary economic consequences (i.e., shortages, quality declines, etc.) we will also suffer higher taxes. Certain foods will almost definitely be taxed more than others, taxes on beers, wines, and liquors will likely increase.

Taxes on tobacco products will skyrocket, and there will be a large portion of people subscribing to the “We’re paying for it, therefore we determine what’s covered” belief who will push for outright prohibition. And it is hard to argue, because it’s so simply appealing. If I have to pay for your health insurance, you better believe I’ll do everything within my power to make sure you never touch a cigarette. (Stricly speaking in the first-person hypothetical: I’m still not voting.)

The same consequences play out if we substitute just about anything for “tobacco products”, above. If the government decides to socialize the provision of food, different interest groups will struggle for control of what food is going to be produced, and in what quantities. Or, what food is going to be covered by the program and in what quantities and available to whom and when.

Those on the losing end will complain about a loss of freedom. Pot, meet kettle. You’d be right, of course, except your freedom became conditional when you infringed on my freedom, by forcing me to pay for your medicine. You’re the prime beneficiary of the State’s gun, pointed at me, forcing me to provide you with something for nothing. All I’m doing is trying to control how much of my money is taken, and how it is thereafter spent.

Thus socialism supplants true community, embodied previously by charity and neighborliness. It does not foster community, it destroys community. War between individuals is instigated by the politics of socialization. And it is essentially the Hobbesian war, of “All against all,” the very condition from which the State claims to shield us all. It is waged with ballots and the casualties are personal freedoms and independence, but it is nonetheless war.

Members of a community ought to revile any institution that would encourage war amongst themselves. They ought to chastise anyone who champions these causes as a liar, a thief, a usurper. They ought to see these tactics as a weapon against community. Smoking and Trans-fats are always healthier than fascism.

Government is the cause of the health care crisis, it’s time to start looking elsewhere for solutions.

Government’s Responsibility for the Health Care Crisis

December 11th, 2008

In the comments at the Reddit thread for my recent post about The Health Care “Crisis”, many people thought that I didn’t thoroughly make my case, that the government caused the crisis. My first thought was, “Why are these people reading Reddit | Libertarian? They must obviously be trolls.”

Perhaps it was not clear, so I will state it here: the purpose of my original post was not to defend the bureaucratic nightmare of American Health Care contra other (more) socialized forms of health care. Given the choice between what we have now, and something that is IMO objectively worse, I’ll keep the status quo, although I would prefer a completely free market.

Most of the complaints seemed to be saying that I didn’t prove my point. I’m convinced that they just didn’t read my post. Reddit user the6threplicant said

This is what I can gather from the article. Since the author can’t actually give good reasons for universal health care …

OK. I guess basic metaphysics, and fundamental, immutable laws of economics aren’t “good reasons.” You got me.

Reddit user daniels220 (who even went so far as to invoke the “from each according to his ability, to each according to his need” screed) said

I can see how the gov’t could have “caused” college tuition to rise, but healthcare costs? Of course you could argue that the cost of getting drugs approved is so high that it drives their prices up, but I’d rather not have stuff that’ll kill me out there, thanks.

I could argue that, but since you can see at least some merit in that, I’ll try not to belabor the point: the fact that R&D is so expensive is simply not because it costs a billion dollars to figure out how not to kill someone. But it’s not just the drugs – it’s the labor. The AMA is essentially a labor cartel that reduces the supply of available physicians, which serves to keep the wages they command and the costs we pay artificially high. Moreover, the lack of health plan portability means that those who are unemployed, or become unemployed, are often without care, and the fact that health insurance is so often tied to a place of employment is a consequence of government price-fixing of wages during WWII.

Topher who commented on my original post, said the following:

According to the Canadian fellow in the office next to mine, health care in fact does work quite adequately in Canada. There may be some delays for non-urgent care, but unlike in the U.S., nobody’s at risk of financial ruin because of health care costs. Exactly what is your basis for saying “inadequate care for everyone else”?

In a nutshell, whenever anyone is forced to wait for care that they could otherwise receive in the absence of government meddling, I deem that level of care to be “inadequate.” Whenever a a bureaucrat (and not the patient) is the arbiter of urgency, I deem that system to be “inadequate.” In short, any system of political rationing is inadequate.

Topher can say “Well, I have anecdotal evidence that it works,” but I have anecdotal evidence that it doesn’t. In talking to a young Canuck about my age, he said he couldn’t afford health care. However, he could afford to go to the Burning Man festival for a week or two, halfway across the continent. And he could afford to sit at the barstool next to me and put down $5 beers. Priorities, eh?

He noted, of course, that people could always go south (to the U.S.) and pay more if they really needed a procedure. This sort of health “tourism” is a fairly new phenomenon, whereby the wealthy are able to circumvent the limitations of their “universal” care, to pay out-of-pocket in another country.

In Canada, some people are finding that they’re being denied treatment (e.g., for cancer meds) that would be “routine” in the U.S.


[A] dramatic new trend in Canadian health-care advocacy: finding the treatment you need in another country, and then fighting Canadian bureaucrats (and often suing) to get them to pick up the tab.

—David Gratzer

In terms of supporting free markets in Health Care, Gratzer is a convert. Growing up in Canada, he thought nothing of the universal program that’s been in place 40-odd years. It wasn’t until he witnessed an EPIC FAIL that he began to doubt the system:

My health-care prejudices crumbled not in the classroom but on the way to one. On a subzero Winnipeg morning in 1997 … the ER overflowed with elderly people on stretchers, waiting for admission. Some, it turned out, had waited five days. The air stank with sweat and urine.

Long waits or “queues”, typical for many procedures in countries with more socialized programs, are indicative of shortages (either of doctors, or of facilities, or both) and shortages are indicative of system failure. A system of universal health care is bound to fail because it attempts to circumvent the laws of economics, viz. scarcity.

To review: scarce resources can be rationed by the price mechanism of the market, or they can be rationed by the politics of pull, special interests, and class warfare. When goods and services are priced below market, they will be demanded in excessive quantities, and generally supplied in sub-optimum quantities. Shortages, and concomitant need for rationing, are an unavoidable consequence of price ceilings.

I do not have reams of empirical evidence to back up my claims, but Gratzer notes that the five-year cancer survival rates in America are significantly higher than they are in e.g., Europe. For instance, “The survival rate for prostate cancer is 81.2 percent here … and down to 44.3 percent in England.” I’ll take my chances with “financial ruin”, if it means I get to live another 5 years, TYVM.

Government is the problem: they cannot bend or break the laws of economics any more than they could invalidate gravity, or thermodynamics. I don’t have fancy charts and graphs or data tables or complex models. I have theory, and the theory is sound.

The Cause of the Health Care “Crisis”

December 9th, 2008

This afternoon, one radio talking head noted that Health Care and College Education are the two industries that really, really have us all by the short-and-curlies. My gut reaction to this is, “D’uh!” Health Care and College Education are two of the most heavily regulated industries.

Some callers noted that a broken leg cost $36,000 or a ruptured appendix cost $25,000 for four nights, or that post-natal nursery care costs $2,000 regardless of whether the infant spent any time in the nursery. A caller was quick to chime in with “The cost of health care in the last decade has risen by 500% (or something) and the cost of cars has only gone up 15%, why does the government allow this to happen?“.

Now, I’m on record as describing “universal” or “single-payer” health care as moral hazard of epic proportions, because the concept, almost by definition, violates every principle of proper (by which I mean “actuarially sound”) insurance. I would go as far as to suggest that outside of State socialism (and we all know how well that works…) universal health care is a metaphysical impossibility: “Successful” and “Single-payer” should never appear in the same sentence.

In all fairness, the scariest part about Universal Healthcare is the amount of control it would give bureaucrats over your life, as if they don’t exercise enough already. But you might dismiss that as tinfoil-hat-paranoia, “Our bureaucrats are noble and benevolent,” you might protest.

Fine. So what if they are?

Universal, single-payer health care doesn’t work in Canada (e.g., “some health care for poor people” but inadequate care for anyone else) and it doesn’t work in the U.K. (e.g., flat-out denials of arguably needed services, etc.). Single-payer health insurance didn’t work in Massachusetts, despite all their ham-fisted attempts to outlaw the laws of economics, and it goddamn-well isn’t going to work anywhere else some half-wit politician tries to implement it.

So, back to the question, “Why does the government allow this to happen?”

The government not only allows this to happen, its policies cause it to happen. If you think TEH GOVERNMENT is going to solve the “health-care crisis,” or the “education crisis”, you’re in for a rude awakening.

no third solution

Blogging about liberty, anarchy, economics and politics