The Fatal Conceit of the Obama Presidency or Why Government Can't Run Everybody's Lives




Michael Hausam
On November 18, 2013
http://www.mphaus.us/

“But even if we get the hardware and software working exactly the way it’s supposed to with relatively minor glitches, what we’re also discovering is that insurance is complicated to buy,” said Barack Obama on November 14, 2013
The context of this comment was the president admitting that the federal government does not do a very good job procuring information technology. Buying computers is an extremely difficult task for the federal government, apparently.
Let alone using those poorly purchased computers to set up a website.
So what makes him think that arranging for 300 million people to procure insurance wouldn’t be that much more difficult? Or even possible?
Friedrich Hayek, Nobel winning economist, used the phrase “fatal conceit” to describe attempts of this magnitude. Hayek’s assertion was that governments would never have enough information to successfully and reliably make decisions for an entire nation.
In contrast, individuals will have an advantage in making decisions for themselves because they each possess beneficial and unique information that is specific to only them.
Multiplying that beneficial and unique information times 300 million means that no small group, no matter how smart or educated, will be able to come close to possessing, let along processing, the information needed to yield the best results for each individual. And therefore society as a whole.
One of the things integral to having the audacity to consider such a task is to be able to ignore other similar efforts.
In 2012 the US Post Office had a deficit of $15,900,000,000. They lost a little over $43 million per day! And they have a monopoly: no company or individual is allowed to deliver mail to residences. Picking up pieces of paper, in locations that are fixed and in boxes that are built specifically to USPS specifications, and then putting them in other boxes is certainly NOT as complicated as healthcare.
Over the last decade Amtrak has lost $83,000,000 per year on food service. Almost a billion dollars! On average, Amtrak trains sell hamburgers at $9.50. But the cost of those hamburgers is more than $16. In other words, taxpayers kick in $5.50 on every hamburger Amtrak sells. And they have a monopoly: no company or individual is allowed to sell hamburgers on Amtrak trains. Cooking meat and warming buns, to a passengers who have no other option, is certainly NOT as complicated as healthcare.
Admitting that insurance is complicated to buy is very funny, after passing legislation that will control it and then having three and a half years to implement it. Still attempting to do it is fatally conceited.

http://www.ijreview.com/2013/11/9527...fatal-conceit/