The other day I was watching an episode of “Shark Tank” , thanks to Hulu Plus and my trusty Roku player. I noticed this line from billionaire Dallas Mavericks owner Mark Cuban:
When there’s a market, and there’s money to be made, the market gets efficient and prices drop.
Now this isn’t exactly a huge revelation for libertarians and other free market advocates out there. In fact, it’s a rather obvious statement of fact.
But this seems to contradict statements recently made by Cuban concerning the health care system. Last month Cuban sent out this tweet:
Some companies are too big to care. See healthcare insurance carriers. Thats when im ok w gov involvement.
— Mark Cuban (@mcuban) September 1, 2013
Mark Cuban should consider his own words regarding the efficiency of markets, as they apply to markets for all goods and services, including health care. The health insurance companies that are “too big to care” today got that way due to government involvement in health care. Government subsidies via Medicaid and Medicare, the Health Maintenance Organization Act of 1973 which created the HMO and PPO system, Medicare Part D, and now Obamacare all contribute to destroying the market efficiency Cuban hails.
All of these interventions create giant crony corporations that are indeed too big to care, because the government has shifted the market in their favor, even to the point of forcing customers to sign up with them via Obamacare! This has nothing whatsoever to do with free markets.
Mark Cuban is a brilliant entrepreneur and absolute genius when it comes to business. But he is confused about the difference between free markets and corporatism, where government works hand-in-hand with corporations to block out free market competition.
Cuban was recently acquitted of the non-crime of insider trading. Does he really want the same government thugs who tried to throw him in a cage and take even more of his money than they already do via taxation running the health care industry?