Tuesday, April 28, 2020

This free capitalism leaves much to be desired

When a top-notch salesman tries to get the most for a product he is selling, he'll delve into all kinds of explanations to confuse you as to the merit of what he is selling for the price that he is asking. And most of the time, he'll succeed to entice you to buy the product.

The way to deal with a sharp salesman is to cut short his or her verbal diarrhea by calling for the bottom line. Something that goes like this: What exactly are you selling? At what price are you selling it? When you get a response, you snap back: I know of someone selling the same product for half the price. Can you do better?

In a free market system, the “fair” value of a product or a service is determined by the law of supply and demand. Consider it to be an ironclad rule for, it has been tested over and over throughout the centuries, and was proven to work every time under normal conditions. Thus, in the above example, if the product is in short supply, you'd find yourself in a seller's market, and the salesman would have called your bluff, responding to your question as follows: No; I cannot do better, so go ahead and buy the product from that someone. And you'd change your mind and pay the asking price because you badly need the product.

But if on the other hand, the product was available in the marketplace in ample supply, and was going at the price he asked for or lower, you'd find yourself in a buyer's market. The salesman would have agreed to sell you the product at the price you offered. He might even have sold for less, had you offered less.

Can there be an exception to the rule of supply and demand? Yes, there can be an exception, and it is referred to as: coerced to accept the deal under duress. This means you were forced to pay a high price for a product regardless of its fair value because of extraneous considerations that would cost you enormously if you rejected the price imposed on you.

And nothing puts someone under duress like the matter of a loved-one's life being in the balance. If someone that's dear to you is on the verge of dying, you will not haggle over payment, you will not even waste time getting into a debate about it. You'll pay the doctor what he or she asks, even if it is an order of magnitude above the going honorarium.

It is for this reason that every civilized country has set up a system which relieves the patients and their families of the fear they might someday be forced to choose between the health of a loved-one or financial ruin. Or worse, having to choose between financial ruin or the life of a loved-one. The system that those countries have set up, came to be known as single payer –– the payer being the government acting as both the insurer of first and last resorts.

So, the question that baffles the whole world is this: Why on Earth has the United States not implemented this system? The answer is that there is opposition to it from the special interest groups who benefit from the existing system, which is one of duress. It is a system that has America pay twice as much for healthcare as any other nation, and yet delivers an inferior product as measured by the various mortality rates of its citizens when compared to the rest of the world.

To see how horrendously idiotic the stance of the interest groups has been, you may read the article that came under the title: “Socialized health care would have made coronavirus worse, not better,” and the subtitle: “Health care best supported by free market principles.” It was written by Kelli Ward and published on April 25, 2020 in The Washington Times.

Please note that Kelli Ward was a medical doctor that turned politician, and now serves as lobbyist for the so-called Health Maintenance Organizations, a kind of “middlemen” who stand between the patients and their doctors, and benefit from the misery of the American public.

To make her point, which is intended to impress the politicians who will ultimately decide the fate of the country's healthcare system, Kelli Ward has played the role of the top-notch saleslady. She falsely asserted that the existing system in America was the best in the world, and then delved into all kinds of explanations to confuse the readers as to the merit of what she is selling … which is the continuation of the existing system.

The problem with Ward's explanations, however, is that she relied too much on playing the game of statistics. What she did amounted to a verbal diarrhea that was ripe to be cut off, as the bottom line was ready to be called: What exactly is she selling? At what price is she selling it?

The answer to the first question is that she was proven to sell an inferior product by the mortality rates in America, and she was selling the product at twice the price of everywhere else.

As to her statistics, all the numbers she quoted get blown away as fake when you look at the bottom line. Here is the reality of the situation:

America's population amounts to 4.3 % the world's population. According to the latest figures, America has 33 % of those infected with the coronavirus disease, and 27% of those that died from the pandemic.

This says that America is 7 times worse off than the rest of the world; not better. And Kelli Ward cannot hide this reality.