Posts Tagged: Liberalism FTW!

How to make everybody richer

Tuesday 31st May 2011

The World Bank have released a report looking at how 100 countries have performed economically in the last 30 years. Which is useful; there are lots of ideas about how to grow economies, so let’s see which ones work best:

“this paper finds new empirical evidence supporting the idea that economic freedom and civil and political liberties are the root causes of why some countries achieve and sustain better economic outcomes… These results tend to support earlier findings that beyond core functions of government responsibility — including the protection of liberty itself — the expansion of the state to provide for various entitlements, including so-called economic, social, and cultural rights, may not make people richer in the long run and may even make them poorer.”

So economically, its free markets, low taxes, and small government which makes us all richer. Good to know, eh?

The bewildering thing is that people have argued this for a century and a half, and this is not the first piece of evidence to support the argument, not by far. And yet lots of people (mostly in the Guardian, it seems…) will still argue against this, will argue against the evidence.

So much for pragmatism, I guess.

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Holy crap, the Guardian have published something worth reading!

Wednesday 18th May 2011

About the government’s health reforms. I’ve mentioned in the past that some of the arguments against the proposals seem somewhat blinkered. The Guardian published an article today which looks at those arguments in a similar sort of way:

“The media debate has ignored the most obvious evidence: the fact that almost everywhere where they have been tried, market approaches work better than centrally planned government ways of running the same activity. Not all markets work well, but even the bad ones seem to do better than central planning.

Many arguments against competition in the NHS seem stuck in a 1930s time warp and ignore 80 years of world history that have taught even the Chinese Communist Party that planned economies are a failure – and this is true even when compared to very imperfect market ones.”

I still don’t understand why people think that healthcare should always be provided by the state. As far as I can see it, such strict adherence to state provision is the answer to a question that no-one is asking. The basic desire – that I think most people can agree on – is to have a good service, for the best value for money, which is accessible to everyone. In that case, as long as the government pays for the treatment, does it really matter who provides it? Shutting out providers other than the NHS simply means that we’re excluding providers who might, potentially, be able to do something better, cheaper or quicker than the NHS can. Can anyone explain why this is a desirable thing?

Some people will say “ah, but we don’t want to be like America, do we?!”. No, and the proposals do not mirror the American system. The American private insurance system, which means that some people simply can’t afford care, is not good. And that’s also not what’s being proposed. The market bit of the American system works well, and it’s notable that countries like France – which has private providers and a public insurance scheme – generally have better health systems than our own. The evidence stacks up, and as far as I’m concerned that trumps any ideological misgivings.

Posted In: Politics Tagged: | 5 Comments