Friday, September 11, 2009

Political Solutions

The President says he wants a political solution to the health care problem in the united States. What does he mean by that?

Franz Oppenheimer said there are two means for people to obtain their needs. The economic means involves benefiting from voluntary trade with another person or group, and since it's voluntary, the other person or group benefits as well. Everyone is better off in voluntary trade, because both parties are, in their own estimation, receiving more than they are giving up. For example, if Mary enters into a voluntary agreement to buys Jane's purse for $50.00 then Mary wants the purse more than the $50.00 and Jane wants the $50.00 more than she wants the purse. As a result of this transaction, both Jane and Mary are happier than they were before the transaction occurred.

The other means for people to satisfy their needs is the political means. Using the political means requires coercion by at least one party in the transaction. If Mary steals Jane's purse, then Mary is better off, but Jane is worse off as a result of the theft.

So going back to the President, he wants a political solution, meaning he wants to take goods from one group, give part of it to another group and keep a cut for the State. This is true of every political solution. Not everyone will be better off as a result, but the politicians are always better off.

So politicians could be defined as those who direct the coercive taking from one group to give to another group for their own profit. Wouldn't we be much better off with an economic solution to the health care problem?

Don't look for that idea to come from politicians though; that's not how they think.

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