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Why Luxury TVs Are Affordable when Basic Health Care Is Not

flat-screen-television

Monopoly products and services go up in price, while competitive ones go down.

Imagine this. You are feeling under the weather. You pull out your smartphone and click the Rx app. A nurse arrives in 20 minutes at your home. He gives you a blood test and recommends to the doctor that she prescribe a treatment. It is sent to the CVS down the street, which delivers it to your door in 20 minutes. The entire event costs $20.

“Medical care prices are up 105% in the last 20 years. This contrasts with the television industry, which is selling products that have fallen 96% in the same period.”

Sounds nuts? Not so much. Not if health care were a competitive industry. As it is, medical care prices are up 105% in the last 20 years. This contrasts with the television industry, which is selling products that have fallen 96% in the same period.

prices2-1

Take a look at this chart assembled by AEI. It reveals two important points. First, there is no such thing as an aggregate price level, or, rather what we call the price level is a statistical fiction.

[Read the full text here, at Foundation for Economic Education]

Second, it shows that competitive industries offer goods and services that are falling in price due to market pressure. In contrast monopolized industries can extract ever higher rents from people based on restriction. Read the rest of this entry »

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[VIDEO] Krauthammer: For the First Time Ever, Both Parties Are Abandoning Free Trade

“I think what’s most interesting is that fact that, if the Republicans are now abandoning free trade, for the first time ever in our memory, we’re having a presidential campaign where neither side is for free trade, which I think bodes really badly for our allies abroad…”

“They’re looking at a race where the country, with both parties, is now moving against free trade. They’d always assume that the United States would be the one country that would rise above the most narrow economic nationalism and save the idea of free trade. That’s not going to be true come January 2017, and that will change the whole international landscape…”

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Source: National Review