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On Free Healthcare and Education

bballcrook21
Posts: 4,468
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12/30/2015 9:05:58 PM
Posted: 11 months ago
This is going to be short, as a long explanation is not needed.

First, I'll start off with a question. What happens when government subsidizes a business?

In the case of healthcare, it is a GOOD (not a right) that is in very high demand. That means that many people want to receive healthcare, so lots of people will provide it in return. However, what happens when healthcare costs become high, and why do they become high?

Can a company survive if it charges its customers an amount they cannot afford? No, it cannot. So what happens when something in such high demand is costly? Well, it starts a repetitive cycle of government. When the government comes in to subsidize healthcare, it inadvertedly increases prices tremendously.

Corporations are smart, and they realize that when people cannot afford something that most of them need and want, that government will come in to buy it for them. Because of this, they increase prices to inexorably high levels, so that people cannot afford them, and gov. has to subsidize. When they do this, they do not have to compete at high levels, and they get a guaranteed flow of income and corporate welfare, so long as they keep prices high.

However, what happens when government decides to stop subsidies? Well, the corporation can no longer survive. It will no longer be profitable, so it will have to restructure. By this, they will have to lower prices to accomodate for demand and the wealth of the consumer, so that they do not run out of business. Also, free market solutions such as boycotts will occur, which is detrimental to a company.

Same thing with education. If the colleges realize that something so high in demand can be subsidized by government, they will increase prices to tremendous levels, so that people cannot afford it. When people cannot afford what they need or want, they go out to take a loan. This loan will be from the government, which has amassed to over $1.3 trillion that we cannot pay back. To stop college prices from going up, force the government to leave the field and to quit its subsidies.

As for tuition rates and interest rates, these interest rates are there because of collateral. Collateral means, that in the case a person who took out a loan for a certain thing cannot or will not pay it back, they seize that property. That's why you can refinance your mortgage at 3%, because if you do not pay it back, they take your home, which is worth something. If you do not pay back a college loan, they cannot take anything, since they can't suck the education out of you. If you decide to get a worthless degree, in Women's studies or the like, they cannot just take this away from you.

This is a premise that many people do not understand, so they find that the price hikes are there because of greedy corporations, and that government is the solution.

Government is never the solution. It is only the problem.

Learn some econ 101 folks.
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
kevin24018
Posts: 1,820
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12/30/2015 9:36:36 PM
Posted: 11 months ago
of course you are correct on all your points and those who would disagree tend to be dependent on the government and therefore try to prove you wrong to justify and placate their feeling of dependence. I think many subsidized business are set up to fail. Think about it, if someone is pulling in multi million dollar bonuses and salary, don't you think they are trying to get all they can out of that business as fast as possible and if it goes under they already have a ton of money so who cares. Sure some get caught and go to jail but that's a very small percentage. Even look at the tax exempt "charities" who pay their top management huge amounts of money. So a subsidy is also not paying taxes etc imo.
bballcrook21
Posts: 4,468
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12/30/2015 10:01:26 PM
Posted: 11 months ago
At 12/30/2015 9:23:46 PM, Greyparrot wrote:
What's the point of buying politicians if they aren't allowed to subsidize anything?

It's all fiduciary responsibility. If they aren't allowed to do anything, as in have little to no power, corruption ceases.
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.