Originally Posted by
Kurt Horner
Can you give an actual historical example of a natural monopoly? I'm at a loss to find any. There are certainly many industries where a natural monopoly was claimed in order so that state monopoly would be granted, but actual examples of natural monopoly are thin on the ground.
Is health care a natural monopoly? Clearly not, since the steady consolidation of this industry has followed the increase in state involvement in the industry. As I've argued before in this thread, the state is the primary (and perhaps the sole) agent driving centralization of industry. The current "reform" legislation shows that process quite plainly -- reforms are typically driven by the industry being regulated, and for their benefit.
Competition has been steadily "reformed" out of the health care industry, since that makes it easier for the industry to extract profits from us.
Generally, things involving the kinds of things we call "utilities" are natural monopolies for the simple reason that having separate parallel sets of infrastructure is stupid and wasteful. I don't think healthcare is a natural monopoly. I don't want a nationalized health system (as in the UK), I want a national "single payer: insurance system as in Canada so people on limited incomes are not bankrupted by medical bills either because they cannot afford private insurance, or because their insurance is uselessly minimal because it's all they can afford, and this is bad for everyone in the long run because then people on low incomes are not getting preventive treatment they need simply because they cannot afford it, causing health problems get worse and worse until they end up in the emergency room with a bill that bankrupts them.
To recommend thrift to the poor is both grotesque and insulting. It is like advising a man who is starving to eat less.
-Oscar Wilde, The Soul of Man under Socialism