Regulation
or free market?
25
years ago the airlines were very highly regulated. All air
fares had to be approved by the gov't. A round trip from
Atlanta to L.A. would have easily been $400-500 in 1985
dollars. I just checked and I can buy a ticket today for $279
round trip.
The answer to making airfare more affordable was deregulation. It was
very unpopular with the anti capitalist left. They were
certain that the cost of air travel would go through the roof, the
airlines would get fat, and air travel would become something only the
rich could afford.
Increasing competition and decreasing price regulation in a free market
has dramatically lowered the cost of airfare and made air travel more
affordable for more people.
The current health care bill only regulates and mandates. It does
nothing to increase competition or promote lower costs.
More regulation WILL lead to higher prices. It is inevitable.
That will need to be paid for. Ultimately each one of us will
pay it.
That payment will come in several forms:
1. Higher premiums,
2. Higher costs of goods and services (to offset the higher
cost to businesses),
3. Higher
taxes to offset the gov't cost
or
4. inflation caused by the gov't simply printing more money to pay for
it and the increased treasury debt.
Mandating coverages to insurance companies will raise costs.
Be prepared. Over the next 12 months as your current policy
renews you will have a price increase. The current politicians (if they
are still in power) will further demonize the insurance companies and
call for an even more government intervention.
In the end we pay. There is no such thing as a free lunch -
or free insurance.
Atlas Realty Service, LLC - Kennesaw, GA
e-Pro - Cobb,Cherokee,NorthFulton,Paulding,Bartow
Another thought.... during airline deregulation one of the big arguments against it was that air travel would become less safe. The airlines still are subject to a high level of safety regualtion, but the pricing and competition were deregulated. The result is that air travel is still very, very safe, and the consumers are the big winners!
Mar 24, 2010 05:35 AM
Delaware Junk Removal 302-530-9186 - Wilmington, DE
Whole House Clean Outs, Basements, Garages, Attics
Spot on Bob, the free market works and the cost in lives we will pay is much too high.
Mar 24, 2010 03:16 PM
Steve Hoffacker LLC - West Palm Beach, FL
Certified Aging In Place Specialist-Instructor
Bob,
Agreed. The only thing that will lead to lower costs of health care insurance is far more providers and more access to them. In a word, competition. :)
Steve
Mar 24, 2010 03:53 PM
Steve Hoffacker LLC - West Palm Beach, FL
Certified Aging In Place Specialist-Instructor
Bob,
Please consider joining and posting this to the group "Celebrating Free Enterprise." Thanks. :)
Steve
Mar 24, 2010 03:55 PM
Steve Hoffacker LLC - West Palm Beach, FL
Certified Aging In Place Specialist-Instructor
Bob,
Thanks for the post on "Celebrating Free Enterprise." It's now featured in the group. Congratulations. :)
Steve
Mar 25, 2010 03:04 PM
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy
The free market works when it is allowed to. The current administration keeps saying that the free market hasn't worked, but it is the heavy regulation that hasn't worked...
Mar 25, 2010 04:49 PM
The Real Estate Corner - Cleveland, OH
The arguement is completely rational but trying explaining rational to the irrational. It is like trying to explain a 3D world to the 2D stick figures you draw on paper. They think that no matter what is done, it should work. They don't have to understand money or economics, just print more. The concept of value has no meaning to them. The worst part of all of this is that there are so many dumbed down individuals now, that when the pain really starts they will not even understand why.
Mar 26, 2010 02:05 AM
Yadkinville, NC
The control of the health care system was the goal, not the free insurance for the poor. Now the government will determine your health care even before you retire and go on Medicaid. I stated in an earlier blog, Obamacare will kill 12 year old girls, it is also going to kill grandma, granddad, many unborn fetuses, etc. In the end, if you are not productive for the state, the state has no use for you.
Mar 26, 2010 04:01 PM
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia
George Stigler got a Nobel Prize for proving that regulation costs more than it helps... that was how long ago? Oh yeah, 1982. Who picked up on that? Oh yeah, Reagan. Who implemented it? Oh yeah, Laffer.
Did their deregulation help? Oh yeah, it did...
May 04, 2010 11:29 PM
Rainmaker
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