Just the other day a question was asked on Facebook, that I'd like to respond to. It's a fantastic question, one I'm sure many people are wondering the answer to. So without further ado....
" According to a report by Health Care for America Now, America's five biggest for-profit health insurance companies ended 2009 with a combined profit of $12.2 billion.
WHY DO MY PREMIUMS AND DEDUCTIBLES GO UP EVERY YEAR????!!!"
Let me reiterate, This is one fantastic question! The answer lies in government's interjection in our free market economy. Without this interference, the insurance market, though it may spike occasionally, will self correct. The free market system leaves an individual producer free to earn as much as he can by lowering his costs and by increasing efficiency. There is a seldom recognized principle that no single commodity, material, or service can be indispensable to an economy regardless of price. A free market is it's own protector, but the government has allowed the insurance companies to create a coercive monopoly through prohibiting interstate competition.
Occasionally those who champion government interference will offer the excuse that the consumer will fall victim to a lesser quality product. Nay,nay! If the government will keep it's hands off business, the companies offering inferior products will be driven to offer the highest quality product they can bring to market, at the most affordable price. Competition will demand that, unless of course government has interfered, creating some imbalance that gives one an upper hand over another.
Capitalism, by it's nature, entails a constant process of motion, of growth, of progress: no one has the vested right to a position if others can do better than he can. This can only result by means of government interference. We need separation of State and Economics!
When critics denounce the free market system as "cruel," the fact they are decrying is that the market is ruled by one single moral principle: justice! Those who offer inferior products at any price will fall to the wayside, and those who strive to bring to market the best quality at the lowest price will thrive.