Question

Does capitalism belong in health care?
What are re benefits of capitalism in health care? What are the drawbacks?

Answer 1

Ans) Capitalism. : an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.

- Under capitalism, there is a separation of health care and state, where the government is not permitted to interfere with the practice of medicine.

Under capitalism, the government may not grant a monopoly to a private doctor’s or union to restrict supply (and thus artificially raise prices).

Under capitalism, the government will not grant a monopoly to a licensing agency to prevent the opening of competing hospitals.

Under capitalism, the government will not ban a drug or medical practice that a doctor thinks can help their patient.

Under capitalism, the government’s sole role is to protect individual rights by enforcing contracts, and protecting the rights of doctors and patients to make decisions free from the initiation of physical force, and its corollary fraud.

Government’s job is to intervene when a doctor commits malpractice (fraud or not fulfill their contractual obligations) through the court system.

Benefits:

- The advantages of capitalism include: Consumer choice - Individuals choose what to consume, and this choice leads to more competition and better products and services. Efficiency of economics - Goods and services produced based on demand create incentives to cut costs and avoid waste.

Drawbacks:

- The disadvantages of capitalism include: Inequality- A capitalist society is based on the right to pass wealth down to future generations. If a small group of people hold all the wealth and that wealth continues to be passed down to the same groups of people, inequality and social division occur.