Tag: voluntary exchange

Obamacare Complexity vs Free Market Simplicity

Free markets are characterized by voluntary exchange between buyers and sellers. Mapping that relationship is absurdly simply, as this image indicates.

Indeed, the only reason I even bothered to include that image was for purposes of comparison. Here is a new flowchart prepared for the Joint Economic Committee showing the healthcare system under Obamacare.

It’s worth noting, by the way, that the system already was a disaster even before Obamacare was enacted. In the health care sector, free markets are only allowed to operate in very rare cases, such as cosmetic surgery, laser eye surgery, and (for better or worse) abortion. The rest of the sector was heavily distorted by government intervention. Obamacare simply makes a bad situation worse.

President Obama’s Poor Understanding of Voluntary Exchange

As explained in an excellent letter to the editor of The Washington Post:

Capitalism’s friends never had to cede moral ground to its enemies, but they will have to replace the current power structure to make room for a revival. President Obama summarized his understanding of free enterprise in his 2009 commencement speech at Arizona State University: “ruthless competition pursued only on your own behalf…”

That markets are built on voluntary transactions – mutual exchange for mutual benefit – is an alien concept in the academic environment that produced Mr. Obama and many of his staffers. That one accumulates wealth in a free market by providing value to willing buyers – the exact opposite of acting “only on your own behalf” – is another idea unlikely to penetrate the zero-sum mentality that dominates this administration.

The author is one Michael Smith of Cynthiana, Kentucky, a gifted and prolific letter-to-the-editor-writer.