The Greatest System Ever Devised

Let’s think this through.

Donald Trump talked about making america great again. Let’s talk a little bit about the good old days and our path to today.

The Auto Industry.

After WWII America became the greatest industrial nation that ever existed. The factories in Detroit converted from making Jeep’s and Tank’s to making cars. The quality was good, and the cost went down.

During the sixties the auto industry found that by reducing the quality people would buy new cars every year or two. GM, Ford, and Chrysler made more money and spent less as cheaper materials and shoddy construction reduced the cost of making a car with little or no reduction in price.

This worked for a while until the Japanese were able to enter the market with better quality cars. In time Toyota and Japan ended up making more cars than General Motors.

Over time the American automakers have again improved quality but major portions of the industry has now moved from Detroit, to the south where the Japanese automakers continue to make quality vehicles. Labor unions have little strength in making cars these days.

Executives make large salaries supplemented by bonuses. The workers make a living wage.

Appliances

The expectation when buying an appliance in the 50’s was that the appliance would last 30 or more years. Cost was less important.

Overtime the appliance industry learned from the auto industry. By reducing the quality so an appliance might last 8-10 years they could improve profits by selling more stoves, refrigerators, washing machines and dryers if the machines didn’t last as long. Overtime prices have soared.

While workers keep jobs, their wages relative to the executives have declined.

This is capitalism at work. Find cheap labor and product obsolesce drives profits. And there is no doubt, profits drive companies in a capitalistic society.

Insurance Companies.

As quality declined, the insurance industry found a way to make money. By offering extended warrantees the insurance companies now get a slice of the action on almost every major purchase a person makes.

To the manufacturer, quality is no longer an issue. They provide a limited warrantee which barely lasts as long as it takes to get the product home. At that point the insurance company takes over, charging a price which gives them a profit.

Think about that for a minute. Profit is the required motivation of any company. Without profit a company quite rightly should not survive. I came to the conclusion that if I said no to every extended warrantee, overtime I would come out ahead.

The result is that I also pay for little or no support. Once a product comes into my home I’m on my own. And yes, every now and then I have an issue that requires resolution. Support is skimpy at best. But in this capitalistic society, “I get what I pay for”.

And the insurance companies get a cut.

Health Care

In this arena, in our capitalistic society there are three major players. The Doctor, the patient, and the insurance company.

In the 50’s it was common for the doctor to come to the patient, figuring that it was unwise for the unhealthy to spread a disease. Imagine a house call. Today the only patient to get a house call is the President or the extremely rich.

By the late 60’s house calls for us commoners were gone. Prior to my retirement, I worked continuously for 7 different companies. Each company provided different health care options. Co-pays, deductables, and covered items were the decision making variables. Another decision point was the network of doctors. Often the most attractive plan financially would require a change in doctors.

Health Care Insurance

Once selected the insurance company now played a role in my doctor/patient relationship. First was did I need to see my primary doctor prior to going to a specialist. The next issue that comes into play is time with the Doctor. The insurance company pays the doctor by visit. The doctor gets paid more as he or she sees more patients.

Does this improve patient care? Or does it lead to a doctor not fully understanding a patients needs. But it does lead to a doctor / patient relationship often driven more by the insurance company and in some cases weakens the doctor / patient discussions. This is certainly not ideal. This communication must be clear in order for the patient to make an informed treatment choice.

Even if coverage is available, it is financially beneficial for the insurance companies to say NO.

Pre-existing conditions is an example of denying coverage based on previous health history. Using less expensive testing or imaging, instead of more precise imaging is another. CAT scans are less expensive. Often MRI scans provide more information. Often insurance companies request CAT scans before MRI scans for this very reason.

If a person has a problem with the insurance company, the only recourse is legal action.

Enter the lawyers…

Anytime a person decides on this path, it takes time. Our court system is cluttered with cases. Insurance companies have multiple high paid lawyers writing briefs which confuse and clog the wheels of justice. Often working against a small law firm with limited resources.

In the end while individuals may get a significant reward. The lawyers also get a significant percentage of the reward.

So the result of this form of Capitalism is…

Those who have do well, but opportunity is limited for those in need. We need to create opportunity in new ways. While capitalism may have its place, it is not an answer to all our issues. In fact capitalism may get in the way of true progress. Innovation in how we feed, educate, and house those in need should be welcome.

Some governmental programs which are not capitalistic.

• Education (at least public education)
• Fire Departments
• Police Departments
• Governmental agencies of all types. (I would never want our elections run by private concerns.)

There are some institutions which provide a more perfect union.

So capitalism often stands in the way wide spread opportunity.

Maybe it is time to change the discussion from why socialism is so bad, to what is wrong with capitalism.