Not Iraq

[My partner, ShopVac Maggie, often reminds me that I am obsessed with the Iraq war. Not that I need her to remind me. Nonetheles, she is right that too much war can do a body no good. Today I try my hand at economics and philosophy. Surely, that will be a more uplifting exercise.]

Timothy Noah has been writing some interesting pieces on health care in Slate. His most recent column is about political reality and market forces. He questions whether a fully free market approach can actually meet health needs. An earlier column looked at how the health care market system might provide another serious need: national security and defense. Predictably, the well off rich are well protected with private militias. Others have varying levels of coverage and sometimes find themselves scurrying to seek what protection they can, at whatever cost, when they are attacked. Noah's market critique is definitely outside the box in American political thinking but he is right to challenge market orthodoxy.

Challenge and change is the hallmark of capitalism and the source of its dynamism. In many ways capitalism is the most revolutionary system because, other than profit and gain, everything is open to question. We sometimes look beyond profit and acknowledge the occasional Greater Good, but at its heart, capitalism is based on self-interest.

Capitalism is also inherently flexible; it rewards what works and is suited to individual effort and large scale enterprise. The combination of flexibility and reward has enabled capitalism to change and resopond to new circumstances and avoid the inevitable fate predicted by Karl Marx in 1848. That danger still exists as capitalists, ever seek greater profit. In capitalism, “it’s always better to pay less” so poor working conditions, pollution or one-sided contracts improve the bottom line. It’s the nature of the system. Like water flowing downhill.

The world has had two centuries experience with capitalism, which emerged from The Enlightenment and influenced industrial growth. Capitalism also supported the idea of political liberty in a system where every person (starting with white males) could pursue his own interests. In 200 years of capitalist development and practice, wealth has grown immensely. In some places and times, the wealth is shared but often not. Self interest can easily justify keeping ever more of the growing wealth, often to the detriment of many others and society as a whole.

That’s why Noah’s questions are appropriate. After Iraq, few issues are as important or critical to America than health care. Noah offers good information and a rarely discussed perspective on health care along with some sharp questions.

Questioning orthodoxy is as American as Twinkies. Americans should question more. A lot more.