On the month
of October in 2009 after much deliberation between the House and
the Senate and to the dismay of most Americans after public displays
of dissent towards representatives at town hall meetings, the Government
passed the Autobama Care Bill.
The bill stated
that from this point on all vehicles belonging to every American
of every make and model and of any mileage were eligible for free
care at zero (direct) cost. This meant that if anyone was caught
in an automobile accident, instead of having to pay an insurance
premium to cover upfront costs the Government would step in and
pay for the repairs in full of both victims. This would eliminate
unnecessary bureaucracy from insurance agencies, the quarrels that
arise from reluctant drivers that do not want to exchange information
and would provide the term "car accident" with its true
meaning connoting that there truly is "no one to blame."
of this bill would in turn raise taxes on the paychecks of consumers
since the Government would require a projected Trillion dollars
to finance such a monstrosity without borrowing most of the money.
This would then result in the further reduction of the net dollars
earned after taxes for every American's paycheck. The reason being
that now out of the estimated tens of millions that were previously
uninsured, not due to cost but to the voluntary opting out of such
services to perhaps employ those earnings towards other ventures.
Now these individuals who opted out on their own discretion were
also being indirectly taxed to pay for this Universal Car Care bill
further hindering their application of "left-over" dollars
to be applied to other resources, further encumbering the private
such a bill in place every citizen that owned a vehicle now paid
a visit to their mechanics regarding every single hiccup or minor
malfunction. The surge in demand for car care went through the roof
as there were not enough shops nationwide to meet this sudden artificial
rise in repairs. Turnaround times for repairs started to increase
exponentially as mechanics worked around the clock to fulfill those
needs. Parts that were necessary for repairs became harder to come
by as a result of this lack of supply for all these repairs and
the nation's stock of auto repair goods plummeted.
Due to this
shortage of service and parts, costs of these goods both tangible
and intangible skyrocketed creating an inflationary environment
in these prices that exceeded any other industry. The net result
was the slow but incremental increase in the amount deducted from
every individual's paycheck as the projected "Trillion Dollars"
somehow kept being readjusted higher and higher (nominally). Some
services that were minor and did not require immediate attention
had to be turned away by the repair shops because of the strain
this was putting on the mechanics and available resources. People
were bewildered and beside themselves with this result and blamed
the corporations in charge of price gouging and demanded further
As time went
on the quality and state of despair of Repair shops became increasingly
noticeable as attention paid to the cleanliness, customer service,
quick repair and turnaround time had to be diverted to meet this
new explosion of auto care demand in the industry. Parts went missing
as mechanics stole them to be sold in black markets at outrageous
prices to those who could afford it and perform the services themselves
and did not want to partake in the new bureaucracy that now existed.
What about those with insurance? Eventually the private competition
was almost entirely wiped out of the market due to the inability
to compete with an institution that maintains a monopoly on the
fiduciary media and does not operate on a profit-loss system.
As a result
the Insurance agencies had no choice but to raise the prices of
their services which further excluded the middle class from this
faster and less cumbersome service than the public option provided.
Now only the elite few could enjoy quick turnaround times at specially
designated "private repair shops." However as time went
on even those with much discretionary wealth were unable to maintain
payments of such magnitudes for these services due to continual
price increases to meet costs by the Insurance Agencies and the
private options that were still in existence folded completely.
At this point
the bureaucracy that insurance agencies used to maintain looked
like kid's play in comparison. Mechanics had to turn away older
cars that were not deemed "fit" enough by Government standards
to receive the necessary care and advised those older and malfunctioning
cars to return when one wheel fell off or any part was so damaged
that there was no other viable option but to replace it. The auto
industry started suffering from domestic sales even further as citizens
were milking every last gallon and mile of every car due to less
retained private wealth which postponed the sale of new vehicles.
New Governmental standards were put forth in the newly built cars
to be comprised of less expensive and interchangeable parts to lower
the costs of this Universal Car care system, the cars themselves
and lessen the burden on taxpayer's earnings.
this was new legislation that was welcomed by the populace and unanimously
passed by both the Senate and the House as it seemed to make perfect
sense. However, as the Government got more and more involved in
the Auto Industry the quality, options and models of cars began
decreasing year after year. In half a decade the cars were so plain
and dull and malfunctioned so often that everyone hated driving
and did not have any demand in purchasing any new automobiles which
further depressed the already ailing domestic Auto Industry. The
nation almost came to a screeching halt (no pun intended).
also suffered from wage decreases due to Governmental costs and
the incentive to become one fell drastically. The lower wages also
were a direct result not only from the program's cost but that in
order to follow Government standards all licensing and trade schools
regarding the field of Auto Mechanics were subsidized by Government
in an attempt to attract more mechanics to this industry. This ultimately
failed and those who were mechanics started providing services at
public repair shops on the basis of which type of payment they were
receiving. They would offer a quicker turnaround time or a better
part that would last longer at a higher price if the consumer wanted
it and had the means to pay for such services "under the table."
Otherwise they would have to endure the long wait required of all
others to receive their repairs. Mechanics even asked for payments
in foreign currencies or commodities in an effort to barter for
a more valuable asset than their now overly-inflated and devalued
Federal Reserve Notes.
the foregoing has been, interestingly enough this parallel is geared
towards the current Universal Health Care boondoggle. Based on the
hypothetical situation presented how can a sensible individual with
rational thinking accept such horrors when it can potentially affect
their very own physical well-being?
A further discussion
of how a free market would truly operate in the medical field is
warranted but omitted due to the intricacies required and to maintain
the article at a certain length. In short, return the Medical Care
system to a complete free market and see costs drop and citizens
will be taxed less. Insurance is for emergency care like the type
paid for in case of disasters or accidents that occur to the individual's
house or vehicle respectively. No one has insurance for toilet repair,
door and lock repair, window repair, tire repair etc. Just as there
should not be insurance for all visits to the doctor, let the market
price those services through unhampered competition and leave the
insurance to emergency medical procedures and major surgeries.
Born in Brazil, David Klein [send
him mail] is a graduate from the University of Central Florida
school of Business. He is currently working in the energy industry,
and is a student of the Austrian School of Economics.