(Opinion) (Draft) Well, it is a little late, but the US is starting to debate whether the US healthcare system is a true market or not. And if they are subject to market force, will they respond in the optimal way. Can we design the right incentives ??
Many economists, both on the left and the right, believe that markets allocate goods in the most optimal fashion compared to other systems(such as cronyism, a dictator or communism)
However, the real question is whether there is a working "market" for healthcare ??
From econ 101, we define markets as 1) having lots of buyers and sellers with no buyer or seller being able to influence the market. 2) Perfect information. 3) 4). In real life there are few, if any, perfect markets, but it does not matter. Goods and services are allocated very efficiently.
However, in health care, there is notable lack of market fundamentals.
I don't believe the healthcare system can work as efficiently as government run program.
1) Size matters
2) Profit is the wrong incentive in healthcare
2) Profit costs someone
3) Government is efficient enough
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