The notion that Libertarians believe that the free market will provide for everyone is a straw man. No libertarian I know believes that.
What we believe is that we live in a world of scarcity. Not everyone can have everything they want. So given that things are scarce, what’s the best way to allocate it? One way is to have a bunch of supposedly bright people sit in a room and plan out the economy and direct it from the top down to make sure it works for everyone. The other is to allow people to make the determination for themselves by freely trading with each other and working to build things that other people are willing to pay them for.
The Liberal’s faith in the ability of government simply astounds me. You are always claiming that Libertarians have ‘faith’ in the market, yet you’re always ready to vote for the man with a plan who, if you’ll just give him a lot of power, will fix everything. And you get suckered every time. The ‘war on poverty’ has been going on for 50 years, and the only poverty that has been alleviated during that time was due to the rise in the economy because of the free market.
Governments claim to have a plan to manage health care, but when you look at the things they already attempt to manage, it amazes me that you’d let them borrow your car, let alone decide what kind of medical treatment your mother should have. These are the clowns who build $233 million dollar bridges to nowhere while New Orleans levees crumble. They’re the ones who manage pension funds in ways that would get them thrown in jail were they in the private sector. The public school system they manage is a joke. Kids got better educations when they were taught in one-room shacks by young girls.
In countries where governments have run other parts of the economy, they’ve done equally disastrous jobs. Old Europe is a fiscal and political wreck with low growth. France and Germany have double digit inflation, ridiculous taxes and regulations, and public debts that make the Americans look like misers. Europe has fallen way behind the U.S. in standard of living. Japan’s highly managed economy is a basket case. Their public debt is six times higher than the U.S.'s as a percentage of GDP.
Canada has a public health care system built on the same arrogance - that central planning can outperform the market. I just read an article in the paper today that the waiting list for a diagnosis after a positive screening of breast cancer in Manitoba is now 6.8 weeks. Can you imagine? Your blood work comes back with a positive marker for cancer, and you can’t even get scheduled to see a doctor about it for 6.8 weeks.
Libertarians point to the endless string of government failures. But Liberals never blame government - it’s always the people. This time, by God, we’ve found someone smart enough to do it. All you have to do is believe in Change, right?
The fact is, there are solid reasons why central planning can never work. The primary one is that there is just too much information flow in a real economy. It simply can’t be managed from on top. And also, some of the information just isn’t available without a free market, because choices are required before people are going to think about them. If you just ask ten carpenters if they need new hammers, all ten will say yes. Maybe they even believe it - It’s easy to justify pork. Hey, free hammer. It’s not until you make them choose between having the hammer or having a pair of pants that they really have to sort out what they value and what they need the most.
The market forces all of us to make choices, to rank the things we need by value, then to spend our money accordingly. It makes us work to get what we want. It forces us to cooperate with each other. The monetary system ensures that information flows directly to those who need it through price signals. Prices provide feedback and are inherently stabilizing, because when scarcity changes, prices fluctuate to reflect reality, and people get the information they need to choose new resources. It is a positive force that binds people together through common interest.
Politics is a force that puts people into opposing camps, where they vote to see which camp gets to dictate to the other. It breeds animosity and hatred. Governments go to war. Countries that trade freely with each other don’t.
Governments have groups of people sit in committees, listen to a handful of experts with big ideas parade by, then write thousands of pages of regulations and force it on the public at the point of a gun. For their own good. They cannot hope to compete. And that’s the ideal vision of government. In the real world, politicians collect cheques from special interests, then get together and horsetrade away the rights of the people in favor of their special interests who keep them in funding to keep them in their powerful jobs.
The ‘bridge to nowhere’ Senator from Alaska just slipped a huge earmark into a bill having to do with Florida. People wondered why a Senator from Alaska would care about a Florida bill - of course it turns out that a Florida contractor who will benefit from the earmark contributed $40,000 to his campaign. That’s government in the real world. And you want them making your health care choices for you.
Liberals tend to think a market is a failure if it doesn’t achieve the social outcome they personally believe is desirable. In other words, they are imposing their values on the market, then changing it by force if it doesn’t provide. It doesn’t seem to occur to them that perhaps there is social inequality because people are not identical robots, and that attempts to force equality without damaging the economy in the process are nothing less than a denial of reality. And in the end, the equality of outcome they seek will only be achieved through a general lowering of the standard of living for all, or higher costs for the same products, or constant series of gluts and shortages as central planners attempt to manage the economy from on high. Oh, and by taking away people’s freedom to choose for themselves.
I don’t need to have ‘faith’ in the market. The results of it are all around me. And all around you. Just look around your room for a minute. Look at the computer you’re using. Think about the thousands of people, maybe millions of people who had to cooperate with each other to make it. Software Developers in India. Chip manufacturers in California. Motherboard makers in Japan. The people who made the tools to mine the gold used to coat some of your connections. The people who built the transportation networks, warehouses, and sales forces to move these products to the people who need them. All of these people found each other and got the information needed to know what to build and in what quantity and where to send it so that it could all come together and become a computer. It’s a self-organizing organic ecosystem of astounding complexity. Mess with it at your peril.
Every mundane thing in your room has a similar story to tell. And think of how fast and efficiently information flows. Think about how the market has reacted to the rise in price of gasoline, and compare it to the government’s reaction. SUV sales are down 14%. Sales of hybrid cars spike. There is massive sudden investment in oil exploration and alternative energy research. Airlines are mothballing their least fuel-efficient jets. The price of goods that have high energy components in them go up, giving a market advantage to lower-energy alternatives. I don’t even have to know why product A went up in price. The price system transmitted to the essence of the problem without having to give me any details. But the result is the same - a move to lower-energy products.
This starts happening immediately.
During the same period, what has government done? Let’s see… they passed a CAFE law that perversely rewards people for building bigger vehicles. They used the energy crisis as a way to justify giving their big agri-business donors a huge chunk of pork in teh form of ethanol subsidies, which has had the effect of driving up the cost of food for poor people driven up the deficit, depressed the economy in other areas, and not done a damned thing for the energy crisis.
Oh, and they hauled some oil execs up in front of a kangaroo court and berated them for having the audacity to provide oil to people for a profit.
This is the kind of reaction you can expect when your government health care program starts to hit the rocks.
This does not mean that markets are perfect. Markets flourish when people are free to trade, but that freedom can be interrupted not just by government, but through market failures, corruption, fraud, and external threats. You need government to set up the playing field so that prices can work. That means regulations occasionally to correct true market failures, and taxes sufficient to pay for the proper functions of government. But government should aways seek to interfere in the least possible way, because even when it’s necessary, it still sucks.