The political discourse on how to pay for health care is locked into an impossible vise. We think that there is either the Market Way or the Government Way. At most, we can conceive of the Mixed Economy Way.
Generally, this third way carries with it most of the disadvantages of the first two approaches: Freedom is restricted and costs remain stubbornly high.
Let us explore the Amish Way.
The Amish pay cash, their own cash to purchase all the health care they need, wherever they want it, and receive it at up to 40% discount.
Not a bad solution at all.
Once upon a time, this happened to be the way for all Americans. This is the rich man's way. How can we return to it--how can the poor gradually make themselves adequately rich?
The solution lies in looking into the operations of the Federal Reserve System (the Fed), our central bank. And adapting them to serve the needs of all the people.
There has to be a two-pronged tack: Reduce costs of producers and increase income of consumers.
The Fed is the pivot in both approaches.
Let us start at the top.
Since money created by the Fed goes to financial corporation--the so-called primary dealers--first, all industrial and commercial corporations pay interest rates on capital expansion loans.
Why can't loans be issued directly to industrial and commercial corporations?
There is no reason, except custom.