elvis
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- Sep 15, 2008
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- #81
Government monopoly i.e. patents, preferential laws, tort insurance, too many tests, etc.
The other thing the proponents of reform argue is that excess profits occur because of structural issues. If they are correct, at P1, the area of the triangle between P1, the supply and demand curves and P2 is excess profits. These excess profits are captured by the healthcare companies. By forcing prices down to P2, demand increases as prices fall.
If, on the other hand as you say, if the market is at price P2 and there are no excessive costs or profits, if prices are forced to P3, shortages will occur.
Again, I am not necessarily making a particular argument. I am just explaining the economics of what the proponents are arguing.
when you use words like government monopoly, that doesn't sound like capitalism is the issue. It sounds like..... Mussolini's definition of fascism is the issue. ie. "marriage between government and big business".
Heck, they've been married and have great great grandchildren!!!! That's the problem.
So why take drastic action like socializing it? Get government OUT all together.