Canadian Med System Leads To Scarcity and Death
George Reisman, the economist who wrote the comprehensive "Capitalism A Treatise on Economics", has a wonderful blog. He discussed the harm done by socialized medicine as currently proven by the vaunted Canadian system. In Canada there are long waits and poor quality healthcare. However, using private medical services is outlawed. Reisman explains why:
[A]ll one need do to understand why socialized medicine leads to the prohibition of private medicine is simply to hold in mind the combination of deteriorating medical treatment and controlled physician incomes under socialized medicine and ask what would happen if an escape from this nightmare exists in the form of private medicine. Obviously, physicians who want to earn a higher income and to have the freedom to treat their patients in accordance with their own medical judgment will flee the socialized system for the private system and leave basically only the dregs of medicine for what will remain of the socialized system. That is what the government’s prohibition of private medical care is designed to prevent.
This was confirmed in arguments before the Canadian Supreme Court. The Times article on the subject reported that
Various medical experts, government representatives and union leaders argued in court that privatization of insurance and services would bring an exodus of medical talent from public to private practices, and make waiting times even longer.
And there you have it. Socialized medicine destroys the quality of medical care and dare not allow the competition of private medical care. To prevent that competition, it must prohibit private medical care and establish a legal monopoly on medical care.
Shall we apply this economic theory to other government programs?