TOM TOMORROW: Doctor Hand! ("How Can They Stay in Business if They Have To Insure Sick People?")

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8. That's why we need Medicare for everybody.

Last edited Mon Nov 4, 2013, 01:42 PM - Edit history (1)

The invisible hand really does work well for most things, except for medical care. The free market operates on four assumptions. They are:

1. The average buyer is reasonably well informed about the product he is buying and about the sellers he is buying from.

2. The sellers are in competition with each other.

3. The buyer is spending his own money.

4. The average buyer is not under duress.

None of those assumptions exist with medical care, so the free market falls apart. This is a situation where nationalized health care can work well, as proven by every other country in the world.

Insurance, which works very well for other risks, isn't working well at all for health risks.