THE FREE MARKET INCENTIVE SOLUTION TO GOVERNMENT PROBLEMS
Here’s a question: Is rewarding efficiency is more effective than punishing inefficiency?
Kinder and gentler governments use market-based price incentives and less coercion. Yet all too many government officials forget about the superiority of the price system, and resort to the threat of or actual violence to get the people to do what they want.
Business people use the price system to attract customers with lower prices and good employees by offering higher wages (the price of work) rather than coercion.
Then you have the occasional business (United Airlines, for example) that forgets that prices tend to work better than violence, and acts like coercive government. Just think of the amount of money and grief United would have saved itself by offering a price sufficiently high to get one passenger to give up his or her seat rather than dragging a random customer out of his seat.
Prices allocate scarce resources and motivate future production. It is a basic concept that seems to elude many who think like socialists.
One of the major reasons the Soviet Union collapsed was the massive misallocation of resources because of a nonfunctional price system. A major reason Obamacare is collapsing is because it relies too much on coercion and bureaucrat pricing (as contrasted with market pricing).














