More with Less, Less with More

I want to spend some time to talk about the involvement of government in the private sector. Of course, the first thing you may be thinking about is the Affordable Care Act (ACA) which is the absolutely worst possible name to have called this act. In fact, it should be called the Unaffordable Care Act as millions of American citizens are now (or will be) paying thrice what they had previously paid on monthly premiums with their chosen healthcare company while the deductible has risen to $5,000 to $10,000! However, it is more than just the ACA. It is about the economy and the growth of government. Currently, the government has provided food stamps (or otherwise known as the hip name of SNAP), cell phones for those who can’t afford them, and extended jobless benefits for those who can’t find a job or have rather chosen to receive funding from the government for no work. Is it any wonder why our national deficit has skyrocketed during the past 6 years?

The market place is a wonderful display of capitalism. If a product is offered at a reasonable price, sales tend to increase and the business is profitable. If a product is overpriced, sales decrease. Well, the same can be true about service. If service is excellent and the customer is treated with respect and courtesy, sales increase…even if the cost of a product or service is higher. However, if service is poor and the customer is treated like dirt, then sales will drop…even with a quality product or service. Because of capitalism, customers have a choice as to where to make a purchase. There is competition in capitalism. The good businesses thrive and the poor businesses must adjust or be driven out of business altogether.

With the ACA, there isn’t competition. Slowly, health insurance companies are being driven out of the market place. According to Alyene Senger of www.heritage.org, the number of insurance carriers in many counties across the nation have been arbitrarily limited. In some counties, there is only one choice and that is called a monopoly. According to capitalism, there would be no limit on competition. Therefore, ACA has greatly limited competition in the healthcare market and the effects of lack of competition have only begun to be felt.

Other nations have nationalized markets during the past generation with poor results.

During his takeover of Cuba, Fidel Castro nationalized the phone company, oil refineries, US-owned businesses, industries, and farms, all US-owned banks, all commercial real estate, and all US-owned real estate according to a report by Don Mabry of www.historicaltextarchive.com. Since then, Cuba has been under the strong-arm dictatorship of the Castro brothers who own everything on the island of Cuba. The people are poor and dependent upon the rich Castro brothers that give them little assistance and there are many US Democrats that claim socialism is successful and working. Yet, President Obama has led the way to improve relations with such a dictator instead of waiting a few more years until the brothers pass away and the people take back the land that was stolen from them. Then, there would be great celebration in southern Florida. The immigrant Cubans would return to their free land.

More recently, Venezuela was taken over by Hugo Chavez who nationalized the news media, oil refineries, stole land and assets from its citizens, and generally took possession of all of the markets in Venezuela. As a result, not only has the cost of necessary products increased, the supply has decreased. Let’s look at one example that everyone requires…toilet paper. According to Joshua Keating at www.slate.com, shortly after the death of Chavez, the government took possession of the toilet paper industry in 2013. As a result the need of the product outpaced the ability for the government to create the product. The greater the demand, the higher the price will be. However, the demand has become so great that Venezuela may be unable to provide enough toilet paper to its citizens. Only so much toilet paper can be created at a time by one business, let alone the government. Compare that to a multiple business model which would allow companies to compete for sales, produce lots of toilet paper at various locations across the nation, and create a better product at a lesser price. This is called capitalism.

Now, imagine if the United States decided to nationalize healthcare. We all know about the Department of Motor Vehicles (DMV) and how well they operate. I wonder if there is anyone who has been able to visit the DMV without having the take the entire morning or afternoon off from work. There is always a line. Wait times are usually over an hour. Can you imagine if the US government nationalized the healthcare industry? That is where we are heading. With the limited number of healthcare options in counties across the nation, the number of healthcare companies will continue to decline. And, once the number of healthcare companies drop to a minimal number, they will become overwhelmed with the number of customers and become inefficient. The healthcare industry will also be overwhelmed with requirements to provide free care to illegal immigrants, which is being pushed by both parties in Washington, DC.  And, once the healthcare industry begins to collapse, the government will be happy to step in and declare that they can run healthcare better. If you aren’t laughing or crying about that thought, then you must not be human.

Has anyone seen the wonderful results of the government-led education system? Perhaps you can judge for yourself when you research how many private schools and charter schools are popping up across the land. More government equals fewer choices with higher costs. And, I am not just talking about dollar signs here. I am talking about educated mind, individualized thinking citizens. Or, maybe that isn’t part of the plan of those in Washington, DC.

Article by John Coder

Posted June 12, 2015

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