There were 2 experements that were started on the founding of the United States of America. One was Democracy but the other one was the Free Market Economy as described in Adam Smith’s “The Wealth of Nations”. The basic theory was that a Free Market Economy where well informed individuals made their own decisions about how they made their money and how they spent it with their own self interests in mind – would yeild the most stable national economy.
I look at the fall of the Soviet Union and the entry of China into the World Trade Organization as evidence that the experement was a success and the theory is working.
But I see that his theory works well when there are many individuals and many choices for what to purchase and what to spend money on. But when individuals gather into very large organization to make decisions, and when choices are constraind by very successful organizations trying to gain influence then the theory breaks down.
When you purchase a car or a televsion set, how many manufactures are there? How many models? How many sellers? — the answer is there are 100’s of choices. These are very competitive markets.
Now, when you are looking for a healtcare plan – how many choices do you have?