Thomas Sowell: Capitalism as a Religion
Thomas Sowell (b. 1930), senior fellow at the Hoover Institution, Stanford University, is the author of "Basic Economics: A Common Sense Guide to the Economy" (3rd Edition, 2007, Basic Books), an elegant, informative, witty and accessible introduction to a wide range of economic principles from the perspective of a modern American economist. Mr. Sowell writes with style and grace on a wide range of economic subjects of highly general interest. He also writes economic propaganda of an absurdity that would make Lenin or Mao blush, completely ignoring the most basic elements of common sense in an effort to demonstrate the absolute perfection of the Capitalist "Market" -- whatever that is -- as an economic mechanism and social structure. A single example will suffice:
"The cost of medical care is not reduced in the slightest when the government imposes lower rates of pay for doctors or hospitals. There are still just as many resources required as before to build and equip a hospital or to train a medical student to become a doctor. Countries which impose lower prices on medical treatment have ended up with longer waiting lists to see doctors, less modern equipment in their hospitals and, in the case of Britain, a substantial portion of their doctors have come from Third World countries with lower quality medical training, because of an inadequate supply of doctors willing to practice medicine in Britain. Costs have not been lowered for the same medical care. Lower prices have been paid for lower quality treatment." (p. 501).
So, since medical care is FREE in Britain, we are to conclude that it must have ZERO VALUE!!!???
Aside from the fact that Mr. Sowell has, in fact, provided no evidence whatsoever that British Health Care is inferior to American Health care, the direct implication of his argument is that free health care is worth nothing whatsoever. This seems unlikely, since life expectancy is actually HIGHER IN BRITAIN than in the United States!!
As Adam Smith pointed out in "The Wealth of Nations", Capitalism has its limitations. There is destructive competition -- such as malpractice litigation, medical advertising expenses, huge medical insurance bureaucracies. There are economies of scale that come from mass production and simplification with government control. And there is the elimination of straight gouging -- Canada's drugs cost half those in the U.S. Would Mr. Sowell seriously argue that that's because they're only half as effective???
Free Enterprise is a powerful spur to creativity and ambition and productivity. It is very useful in many economic contexts. But not all the time. And not always with health care.
Don't confuse analysis with pure religious faith. The "Market" is not perfect. And the "Market" is not all there is to economics or human society. Thomas Sowell's economic fanaticism notwithstanding!!
Thomas Sowell (b. 1930), senior fellow at the Hoover Institution, Stanford University, is the author of "Basic Economics: A Common Sense Guide to the Economy" (3rd Edition, 2007, Basic Books), an elegant, informative, witty and accessible introduction to a wide range of economic principles from the perspective of a modern American economist. Mr. Sowell writes with style and grace on a wide range of economic subjects of highly general interest. He also writes economic propaganda of an absurdity that would make Lenin or Mao blush, completely ignoring the most basic elements of common sense in an effort to demonstrate the absolute perfection of the Capitalist "Market" -- whatever that is -- as an economic mechanism and social structure. A single example will suffice:
"The cost of medical care is not reduced in the slightest when the government imposes lower rates of pay for doctors or hospitals. There are still just as many resources required as before to build and equip a hospital or to train a medical student to become a doctor. Countries which impose lower prices on medical treatment have ended up with longer waiting lists to see doctors, less modern equipment in their hospitals and, in the case of Britain, a substantial portion of their doctors have come from Third World countries with lower quality medical training, because of an inadequate supply of doctors willing to practice medicine in Britain. Costs have not been lowered for the same medical care. Lower prices have been paid for lower quality treatment." (p. 501).
So, since medical care is FREE in Britain, we are to conclude that it must have ZERO VALUE!!!???
Aside from the fact that Mr. Sowell has, in fact, provided no evidence whatsoever that British Health Care is inferior to American Health care, the direct implication of his argument is that free health care is worth nothing whatsoever. This seems unlikely, since life expectancy is actually HIGHER IN BRITAIN than in the United States!!
As Adam Smith pointed out in "The Wealth of Nations", Capitalism has its limitations. There is destructive competition -- such as malpractice litigation, medical advertising expenses, huge medical insurance bureaucracies. There are economies of scale that come from mass production and simplification with government control. And there is the elimination of straight gouging -- Canada's drugs cost half those in the U.S. Would Mr. Sowell seriously argue that that's because they're only half as effective???
Free Enterprise is a powerful spur to creativity and ambition and productivity. It is very useful in many economic contexts. But not all the time. And not always with health care.
Don't confuse analysis with pure religious faith. The "Market" is not perfect. And the "Market" is not all there is to economics or human society. Thomas Sowell's economic fanaticism notwithstanding!!
posted by Jerry Kraus at 5:49 PM
0 Comments:
Post a Comment
<< Home