Tuesday, August 24, 2021

Consider an Alternative


Just imagine if a proportion of the capital and wealth destroyed due to the authoritarian restrictions in Australia had instead found its way into funding an increase in hospital capacity.

In a free market an increase in demand bids up the price of that which is demanded creating the incentive for an increase in supply due to higher prices. As the supply increases an equilibrium will eventually be found between supply/demand with the result being that more people will get what they want with more people willing to provide it, all without some bureaucracy trying to figure out such complexities and issuing orders.

This is a proven historical fact.

Whether it be in medical, construction or automotive, an increase in demand incentives an increase to supply that demand. In medical care that demand can be for doctors, nurses, equipment, beds and drugs. An increased demand will naturally create an incentive for an increase in supply.

Unless of course you have a centrally planned bureaucratic medical system which has eliminated "price" as the means of rationing thus destroying the profit/loss incentive as it pertains to human behaviour and how people organise themselves.

Australia, to a significant degree, has a centralised beaucratic healthcare system run by the state. Thus money is "appropriated" by both legislative and executive fiat to "medical care" as opposed to being appropriated by a free market in conjunction with supply/demand principles.

You'll NEVER hear the Australian professional class in media/politics/health discuss such a topic because the Overton window has completely shifted into a centrally planned mindset. If one central plan fails it is only to be replaced with another central plan.

Good luck with that.

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