The Strength of Markets
June 8th, 2009This post is NOT about politics, but rather about an example of how people think and the strength of markets.
Last week, on the drive to Pine Cove Family Camp, Pam and I began talking about the possible socialization of the American health care industry. My stance was simply: The government can do what it wants, but there will always be some who are wealthier than the masses and you can bet that they’ll find good health care, and the best of the physicians and other professionals will migrate to serving the wealthier crowd.
To this, Pam replied: “What if the government makes it illegal to practice medicine privately, as it is in Canada?” We thought a minute, and then Pam said: “Do you remember the mercy ships we’ve heard about that provide health care for undeveloped countries by pulling a health care laden ship into their ports and serve the ultra-poor by bringing them on board the ship? Some enterprising individual can do that, pull a boat for the wealthy into a U.S. port, take it out 12 nautical miles into international waters, provide the necessary medical procedures, and then pull back into port that evening or the next day. There’s nothing the U.S. government can do about what happens in international waters. Ships do it for gambling. They can do it for health care.”
A few days later we were having breakfast with a couple of physicians and the health care situation came up. With a solution similar to Pam’s medical ship idea, one of the physicians said: ”Yes, if they socialize the industry and make it illegal for private practice, you can bet physicians will be setting up shop in Mexico and offering package deals that include the flight, accommodations, meals, the medical procedure and the return trip home.” He’s absolutely right. We’ll see the best and brightest physicians, along with the world’s best medical centers, move to Mexico and the professionals will live like kings without worrying about defensive medicine, being sued, and all the other headaches that come along with our highly regulated industry, which is about to be regulated even more.
Even more interesting is that this physician went on to say the average new physician is entering the market with $250,000 – $400,000 in debt associated with medical school and training. Wow! That’s staggering. Who, in the right state of mind, would go through ~12 years of school and training, take on $250,000 – $400,000 in debt and then settle for a government paid job? That’s definitely no way to attract the best and brightest.
So what’s the bottom line in all of this? Markets move, and they move with more power and smarts that any government has ever dreamed of having. Hence, when you’re thinking of “outsmarting” the market, you may want to think again. There’s millions of people out there, and when it comes to publicly traded companies, you can bet that others are thinking the same thing.
Once again, markets are efficient.
Thanks,
Rod
14 Responses to “The Strength of Markets”
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Very good information, Rod. I thoroughly enjoyed it…probably because I agree with it.
Health, Fitness — Darryl Pace
Fitness Product Review
Darryl,
Thank you for your kind words. People routinely underestimate the power, creativity and intellect of the markets. It kind of reminds me of being a young engineer fresh out of college. The gritty old-timers in the oil field loved to say: “it may work on paper, but it doesn’t work in the field”. In reality, mother nature (specifically, chemistry and physics), and markets, always work. The problem is that we don’t always accurately model the complexity inherent with mother nature and the markets. Nevertheless, when you step back and look at the situation with 20/20 hindsight, it’s often quite simple.
Stay tuned!
Thanks,
Rod
Great post. That may or may not happen but there will still be good doctors that stick around. Great topic.
Anthony
http://www.anthonylemme.com
The Most Powerful Personal Growth and Mind Development Tool on Earth
Hi Rod,
I thought exactly the same way! Its just crazy!! But its learned conditioning…the lure of false security of a government position!
Not many people have the will to stand on their own two feet and work for themselves
Duane
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Rod,
This reminds me to feel happy once more with our Australian Health Care System (MediCare).
In the future, they will need to scrap the great free public health care system as it’ll become unaffordable with the aging population.
John Ho
Numerology Expert Helps Understanding Personality for Better Influence & Persuasion (WordPress Blog)
Numerology Expert Birthday Numeroscope (Vox Blog)
Numerology Expert Helps Understanding Personality for Better Influence & Persuasion
Good analogy.
I enjoy your unshakable belief in the power of reason.
JJ
Starting a Coaching Home Business
It would be terrible if this happened. I would hate to lose all these talented physicians. I live just a half hour from Boston where we have some of the best hospitals in the world. Unfortunately, I think I have taken that for granted. If we change to socialized medicine I’m sure all those wonderful hospitals would not be so wonderful anymore.
Lisa McLellan, Babysitting Services – Babysitters, Nannies, and Au-pairs
Rod,
I love this post. I think you’re so on target with this. Thanks.
Lynn
http://www.Warriorofsuccess.com
Rod i think this is your best post so far. My son needs special medical care and thank God i can afford to bring him to the best doctors. one of his medicines if i had to pay out of pocket would be over $5000.00 every other month. my excellent insurance makes it affordable at a $200.00 deductable. point is, big pharma will move with the Doctors if the government tries social medicine. The pharmacies need the doctors to push the pills or they are out of business.
Don Shepherd
Central Oregon Camphiker
Don,
Thank you for your kind words. Yes, big pharma will follow the money, as will people, including doctors. I have many petroleum engineering friends who have spent a significant part of their career overseas. Why? A better opportunity to pursue their interests.
Similarly, if a young doc with $300,000 in medical school debt has a choice between making $125,000 in the U.S. and living a standard middle class life and making $300,000 a year and living like a king or queen, which direction do you think they’ll go? Which direction would you go?
Thanks,
Rod
Lynn,
Thanks, as it’s only logical that people, skills and money have always found ways to move across borders to find a higher ground.
Rod
Lisa,
Unfortunately, it may be coming. Your comments about Boston reminds me of a conversation I had with some friends from India over dinner and a glass of wine about a year ago. One of them mentioned that MIT is now a lower-end backup school for the best of India’s high school graduates. Where is their first preference? A few prestigious Indian schools that offer a better education and more opportunity. People, talents and markets will always find the way to higher ground.
Thanks,
Rod
JJ,
Thank you for your kind words. As emotional as people are, they do have a way of migrating toward logical improvement of one’s lifestyle.
Stay tuned!
Thanks,
Rod
Everything is political, especially when it comes to health care, and you are right on with this one. We have known, or should have known, that the health care system was broken and that it needed fixing for many years. Sadly, we only seem tobe considering the socialist approach, rather than giving people freedom to choose and letting the market correct the problem.
The market will still win out in the end, it always does, the common man will simply get screwed in the process.
Steve Chambers, The Sales Expert
The Sales Eagle Solution – 6 months to dominate your market