Quote:
Originally Posted by Illuminaughty
I agree with you, there should be regulations that restrict this oligopoly, which actually is a violation of the free market. There needs to be some regulations that address this price fixing, and there needs to be some regulations cut as well. Actual competition and incentive are the only things that can keep the price down.
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I don't think you need the private sector to keep the price down. Look at Saskatchewan and Manitoba telecom. There pricing is half of what the price elsewhere in Canada and it returns profit to the government.
It is a myth that the government can't drive cost down. What the government isn't incentivized to do is innovate. Innovation can bring new tech or drive down costs and is achieved through failure and market selection.
So in a relatively mature industry like basic health services a publicly funded system should give excellent results. In the drug industry the profit motive drives innovation. So a balance of private sector innovation and public options is required. Ignoring the value a governments effectiveness in delivering services in a monopoly or oligopoly environment and relying on capitalism to deliver optimal outcomes is as foolish as expecting communism to work.