Thoughts on economics and liberty

The fundamental problem with monopoly health regulation

Why are monopolies bad?

For one, they displace all competition and alternatives. Second, they are expensive.

These defects are most pronounced in the field of health regulation.

I’ll be explaining this in more detail in a book I’ve been working on for the past few years in my spare time. But some notes I had made recently:

13 September 2020

Economics teaches that the biggest danger to society is a belief in one’s perfect knowledge – or even the capacity to collate and understand all relevant knowledge.
It is this belief in perfect knowledge that creates Oracles like a Chief Health Officer or regulators like TGA or FDA. Doctors occupying these hallowed roles are miraculously supposed to know more than ALL other equally (or more) qualified doctors just because an ignorant politician appoints them to such a role.
Since no brain is privy to perfect knowledge (that’s the socialist calculation problem of Mises for those familiar with it), we must design a FREE society where markets (individuals) decide for themselves based on their own information.
In a free society, private bodies will compete for certification. Some of them might certify ivermectin, others might say it is not good enough. In the end the truth will emerge as doctors and their patients adopt one or other of these certifications – based on their proven success (or failure).
When we centralise information in the brain of a single individual (CHO, TGA) we end up destroying the prospect of the emergence of the truth.
The reason I don’t extoll ivermectin like Kelly does is because I don’t have perfect knowledge of the matter and I know Kelly doesn’t, either.
I believe in creating competition and systems that allow independent actions and debates in the medical system. Unlike Kelly who merely castigates TGA (which implies he would appoint a “better” regulator – an impossibility), I would abolish all health regulators and replace them with multiple self-regulating bodies. And ensure that doctors are at ALL times entirely free to prescribe whatever they think is right.
And I would stop the licensing of doctors. Let there be competition in the provision of health advice and services.
(Guess who would oppose this? The bad doctors whose days to exploit patients and taxpayers for monopoly profits will then be over.)

14 September 2021

There is no doubt that the TGA, a captured regulator, has grossly over-reached its remit. In addition, AusReps is fundamentally opposed to the government “anointing” some doctors (often less qualified and experienced) as superior to others. Every medical professional must have the full right of independent determination to an appropriate medical treatment. We will review the entire health regulatory system through a Royal Commission.

A Sad and Shameful Day for Australian Medicine

Also see: https://t.me/sanjeevsabhlok/1901

 

ADDENDUM

My email so someone who’s upset with TGA’s banning the use of ivermectin:

That’s a good letter but the behaviour of governments and health regulators is EMBEDDED into the system – it is the logical inevitability of the incentives embedded into these “regulatory” systems (which are essentially a protection racket for the pharma industry). Ref: public choice theory and the theory of regulatory capture. I’ve made some notes on this recently.

We need to completely change the health regulatory and occupational licensing system. We need competitive and free market methods of regulation, else the deep-seated intellectual and financial corruption in our health system cannot be stopped.

Your letter will be thrown in the waste bin by these people – who care most for their own welfare, not for the welfare of Australians. We reward them for such behaviour. Let’s fix that first.

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Sanjeev Sabhlok

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