Soapbox Saturday: Free Markets and Public Competition

Dean Baker says “People who like the market to determine outcomes should be happy with the idea of having the government compete on a level playing field with private sector firms.

If private firms offer a lower price or a better product, the government will be driven from the market with little harm done. However if the private firms prevail because the government is not allowed to compete, this is equivalent to taxing the public by making it pay more than necessary for health insurance and other services, and handing the revenue over to the firms in the industry. That’s a great deal for these industries, but it has nothing to do with a commitment to a free market or good policy.”

Read the rest of his argument here.