Comments on: Would Adam Smith Support Government-Run Healthcare? http://blog.heritage.org/2009/09/30/would-adam-smith-support-government-run-healthcare/ Tue, 14 Feb 2012 19:53:39 +0000 hourly 1 http://wordpress.org/?v=3.3 By: mathew trupino, mich http://blog.heritage.org/2009/09/30/would-adam-smith-support-government-run-healthcare/#comment-104272 mathew trupino, mich Thu, 08 Apr 2010 12:38:15 +0000 http://www.foundry.org/?p=15978#comment-104272 it is not clear that adam smith would support a public option but i do believe that he would support much of what is in the health care bill that recently passed. In the wealth of nations smith argued against the mercantile policies that came before him and thought that there was a problem with the government essentially granting monopolies and preventing competition, which it is hard not to argue has occurred in the health care industry for decades. adam smith argued that "a monopoly granted either to an individual or to a trading company has the same effect as a secret in trade or manufacturers. the monopolist, by keeping the market constantly understocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise the emoluments, whether they consist in wages or profits, greatly above the natural rate" (smith 61). prices of health care and insurance are much different than their natural rates under perfect competition because there essentially is no competition in many states, in many cases this is because of government interference. i think a case can also be made that smith may have supported the public option because he did think the state should provide 1. national defense 2. administer justice and 3. maintain certain enterprises in the public interest that could never be profitable if undertaken privately. i believe one of the reasons that health care is highly profitable is because of the monopolies that currently exist and have persisted because of the prevention of competition in the industry and other barriers to entry like the high cost to start an insurance company. it is also misleading to ignore his theory of moral sentiments which is essential for the type of system he advocates in the wealth of nations. in order to argue that adam smith would support the system as it currently is, without the bill that recently passed, one would have to argue that he did not advocate competition and free markets. it may be possible to make a case for this but i think it would not be a strong one. it is not clear that adam smith would support a public option but i do believe that he would support much of what is in the health care bill that recently passed. In the wealth of nations smith argued against the mercantile policies that came before him and thought that there was a problem with the government essentially granting monopolies and preventing competition, which it is hard not to argue has occurred in the health care industry for decades. adam smith argued that "a monopoly granted either to an individual or to a trading company has the same effect as a secret in trade or manufacturers. the monopolist, by keeping the market constantly understocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise the emoluments, whether they consist in wages or profits, greatly above the natural rate" (smith 61). prices of health care and insurance are much different than their natural rates under perfect competition because there essentially is no competition in many states, in many cases this is because of government interference. i think a case can also be made that smith may have supported the public option because he did think the state should provide 1. national defense 2. administer justice and 3. maintain certain enterprises in the public interest that could never be profitable if undertaken privately. i believe one of the reasons that health care is highly profitable is because of the monopolies that currently exist and have persisted because of the prevention of competition in the industry and other barriers to entry like the high cost to start an insurance company. it is also misleading to ignore his theory of moral sentiments which is essential for the type of system he advocates in the wealth of nations. in order to argue that adam smith would support the system as it currently is, without the bill that recently passed, one would have to argue that he did not advocate competition and free markets. it may be possible to make a case for this but i think it would not be a strong one.

]]> By: Obamacare: America's Healthy Choices Act in Senate Finance Committee Day 7 | Fix Health Care Policy http://blog.heritage.org/2009/09/30/would-adam-smith-support-government-run-healthcare/#comment-59296 Obamacare: America's Healthy Choices Act in Senate Finance Committee Day 7 | Fix Health Care Policy Mon, 05 Oct 2009 13:53:58 +0000 http://www.foundry.org/?p=15978#comment-59296 [...] words like “affordability” and “choice and “competition”, and even invoked the name of Adam Smith, the greatest of free market economists , to justify an expansion of government control, the [...] [...] words like “affordability” and “choice and “competition”, and even invoked the name of Adam Smith, the greatest of free market economists , to justify an expansion of government control, the [...]

]]> By: Robert Price Springf http://blog.heritage.org/2009/09/30/would-adam-smith-support-government-run-healthcare/#comment-59225 Robert Price Springf Sun, 04 Oct 2009 13:40:17 +0000 http://www.foundry.org/?p=15978#comment-59225 NOTE Analysis OF Health Care Bill HR3200 Done By CADC Board Member,Mat Staver OF The Liberty Council, And Dean Of Liberty University School Of Law.Just Two Very Need TO Know PG. PG58 GOV Will Have Real-Time Access To INDIVIDUALS FINANCES And A NATIONAL ID HC CARD will be Issued. PG 59 Line 21-24 GOV will have DIRECT ACCCESS TO YOUR BANKS ACCCOUNTS for ELECTRONIC FUNDS TRANSFER.Al SO ACORN Is IN Working For The GOV And Being Paid By OURE TAX DOLLERS. NOTE Analysis OF Health Care Bill HR3200 Done By CADC Board Member,Mat Staver OF The Liberty Council, And Dean Of Liberty University School Of Law.Just Two Very Need TO Know PG. PG58 GOV Will Have Real-Time Access To INDIVIDUALS FINANCES And A NATIONAL ID HC CARD will be Issued. PG 59 Line 21-24 GOV will have DIRECT ACCCESS TO YOUR BANKS ACCCOUNTS for ELECTRONIC FUNDS TRANSFER.Al SO ACORN Is IN Working For The GOV And Being Paid By OURE TAX DOLLERS.

]]> By: » Adam Smith and the ‘public option’ - Blogger News Network http://blog.heritage.org/2009/09/30/would-adam-smith-support-government-run-healthcare/#comment-58426 » Adam Smith and the ‘public option’ - Blogger News Network Wed, 30 Sep 2009 21:49:29 +0000 http://www.foundry.org/?p=15978#comment-58426 [...] [2] The Heritage Foundation, 30 Sep. 2009, Would Adam Smith Support Government-Run Health Care? http://www.foundry.org/2009/09/30/would-adam-smith-support-government-run-healthcare/ [...] [...] [2] The Heritage Foundation, 30 Sep. 2009, Would Adam Smith Support Government-Run Health Care? http://www.foundry.org/2009/09/30/would-adam-smith-support-government-run-healthcare/ [...]

]]> By: Public Plan Vote Aftermath: Mostly Dead or Slightly Alive? – Blog Watch http://blog.heritage.org/2009/09/30/would-adam-smith-support-government-run-healthcare/#comment-58347 Public Plan Vote Aftermath: Mostly Dead or Slightly Alive? – Blog Watch Wed, 30 Sep 2009 17:17:35 +0000 http://www.foundry.org/?p=15978#comment-58347 [...] Heritage’s Matt Spalding responds to Democrat Jay Rockefeller’s assertion that Adam Smith would have supported a public option: But does Rockefeller seriously think Adam Smith’s principles are consistent with the government-run healthcare?  This view depends on the patently false idea that competition would be enhanced by the addition of a new player – the government – in the insurance market. The problem is that government, by definition, isn’t just another economic player, and will always tend to want to control markets for its political purposes. That threatens economic as well as political liberty. (Hmmm . . . isn’t this why we favor free markets in the first place?) [...] [...] Heritage’s Matt Spalding responds to Democrat Jay Rockefeller’s assertion that Adam Smith would have supported a public option: But does Rockefeller seriously think Adam Smith’s principles are consistent with the government-run healthcare?  This view depends on the patently false idea that competition would be enhanced by the addition of a new player – the government – in the insurance market. The problem is that government, by definition, isn’t just another economic player, and will always tend to want to control markets for its political purposes. That threatens economic as well as political liberty. (Hmmm . . . isn’t this why we favor free markets in the first place?) [...]

]]> By: The Public Option: When Competition Isn’t Really Competition | QandO http://blog.heritage.org/2009/09/30/would-adam-smith-support-government-run-healthcare/#comment-58306 The Public Option: When Competition Isn’t Really Competition | QandO Wed, 30 Sep 2009 15:36:54 +0000 http://www.foundry.org/?p=15978#comment-58306 [...] is, instead, a prelude to monopoly.  That is the case with the “public option” in the health care reform desired by the [...] [...] is, instead, a prelude to monopoly.  That is the case with the “public option” in the health care reform desired by the [...]

]]> By: Bill San Antonio TX http://blog.heritage.org/2009/09/30/would-adam-smith-support-government-run-healthcare/#comment-58345 Bill San Antonio TX Wed, 30 Sep 2009 13:12:11 +0000 http://www.foundry.org/?p=15978#comment-58345 Another example that the Democratic Politicians will say ANYTHING to pass a Health Care Plan that the majority of Americans strongly oppose. In this case, all Rockefellah accomplished was appearing as a fool. Then, again, he already has his slice of the American Dream. Another example that the Democratic Politicians will say ANYTHING to pass a Health Care Plan that the majority of Americans strongly oppose.

In this case, all Rockefellah accomplished was appearing as a fool. Then, again, he already has his slice of the American Dream.

]]> By: MotherRedDog http://blog.heritage.org/2009/09/30/would-adam-smith-support-government-run-healthcare/#comment-58283 MotherRedDog Wed, 30 Sep 2009 10:43:49 +0000 http://www.foundry.org/?p=15978#comment-58283 After listening to this debate over the amendments of a few hours, I'm convinced that the liberal democrats really truly believe what they are saying. That makes them either stupid, dangerous or both. After listening to this debate over the amendments of a few hours, I'm convinced that the liberal democrats really truly believe what they are saying. That makes them either stupid, dangerous or both.

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