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Intellections Discussion

The Importance Of Competition

What are other industries that are overdue for a competitive shake up? Are there any non-profit industries that qualify?

 

Responses

The DMV would be well served to have some competition!

The electric car industry is getting pushed by Tesla, in a way regulation and existing competition could not do itself.

Amtrak and National Transportation can probably use a shareholder licensing approach to disruption.

Non-profit as a category, can perhaps be reinvented by allowing the tax code to carry over more money.
As Pierre Omidyar once note: Its okay for a non profit to make money to sustain itself, so it doesn't need to constantly spend resources chasing it.
This model is used in parts of Europe

Health industry Insurance Industry, Banking industry.

Every industry that is dominated, currently, by a government monopoly. It is happening, as we speak in education with Open Education, YouTube and other platforms. Unfortunately, the government and accrediting groups maintain a monopoly on credentials, so knowledge is only power if you acquired it from an approved source.

Education. Even though there are alternatives, everyone is forced to support the government monopoly, and therefore public education is perceived by many as "free".

Rental industry

Big Pharma comes to mind. Prices are ridiculous in the USA. I think we need another round of trust busting in all industries, and split up all these mega-corporations that are squeezing out smaller competitors and creating de facto monopolies.

The more I think on it, Khan Academy is kind of like a home grown Uber for middle and high schoolers. The Education system did not provide for these kids, so one guy on his own did. The Education system in America could really use a re-work.

Definitely education, but not just in the Khan/Ted-Ed model. College books? Special editions of a loose-leaf text book just for that college that costs $200? That's outrageous. Anything with a captive audience like internet providers, cell service, energy delivery.

We could use more competition in the drug industry, the big pharma industry, health care in American all the way around would benefit from competition. Along wth them the insurance companies due to Obama care is just about an monopoly now, and that is wrong for consumers and for the insurance company. More price transparency so consumers can shop for the best price in the health care industry would go a long way in bringing down prices, with insurance company's and policys not doing that now, consumers can't get prices for procedures and services until they check it through your carrier for our health care that is wrong and has helped lead to the high prices of Dr. hospitals, and others in the health care field. .

Health insurance needs competition and not just between health insurance companies. Unfortunately, the Affordable Care Act put a damper on non-insurance methods of paying for healthcare other than personal loans and cash. Co-op health groups would have been a feasible method, but they were not able to grow and be sustained under the Affordable Care Act.
A few other options for education would be the MOOC system, which offer multiple different courses from a variety of universities and colleges. Included in this would be EdX and Coursera, which are based in the US and Futurelearn which is based in the UK.
I agree that drug companies could also use competition.

Pharmaceutical industry. Open competition for drugs already in use should have prices negotiated to find the lowest cost for consumers.

The initial premise behind this question is facile and over-simplified. Competition does not reliably lead to lower prices and better quality. Fast food, anyone? Sometimes it leads to deceptively-priced, shoddy goods. Sometimes it leads to over-priced, niche-market brand names. "Competitors" are rarely competing for the same customers. Realtors know that if your product is attractive to it's entire prospective market, you're charging too little. Many sellers price their goods/services so that only 90-97% of prospective customers can afford them; that optimizes income and creates profit.
In "The Wealth of Nations", Adam Smith states that if any good or service is needed by 100% of the population --e.g. healthcare, education, water -- and a business cannot fill that entire need and profit at the same time, then in that case the good/services should be nationalized. Yes, Adam Smith advocated democratic socialism in certain cases.
Unlike the other video I previously watched on this site, this one offers opinion mixed into fact -- and the question is slanted to avoid questioning that opinion. Is this site sliding into bias, or is this just an odd one that got slipped in?

The DMV is already getting competition. (At least in California) I can go to AAA and get my tabs renewed. No long line. Of course, I can also do that online with the DMV's website.

The problem I have with the "competition is good for us" argument is that in the wrong places it doesn't do good. Education, health, and retirement support are three that come to mind for me. Education has suffered under the voucher program and the charter school program. Schools run as "for profit" have failed students, teacher, and communities. They've sacrificed quality of education for profit. Education shouldn't be a cash machine, it should be an investment in the world's future. I hope we've all seen the mess that is the American health system, especially in the insurance industry.

An aside. Sometimes I don't buy the cheapest product. I'll pay more for quality, for something that lasts.

health/pharma, goodwill type industries. red cross needs competition, they are seriously corrupt. our political parties

Even with competition, companies can collude as a whole and work in tandem with price fixes, such as has stations , product downsizing but keeping the price the same so you don't notice, price gouging in products, and etc... Your implication that competition is good for consumers should come with an exception in these and other circumstances. I for one think that for profit anything that has to do with people such as healthcare and education, is a terrible thing for consumers!

You guys have about covered them all! I think I would start with Health Care and a total overhaul of Big Pharma. We should be able to buy affordable meds in ALL of America--the U.S., Canada, and Mexico--without a road trip involved. Not that I wouldn't love trekking to the Great White, but I think you get my point.

The IRS needs competition. Customer service is an afterthought. Rules are obscure and convoluted. -And made to help the authors of each wave of rules.

Education, especially public education.

Cable companies

Charitable organizations such as Good Will are perceived as doing good. While in fact, most of the money spent at their stores goes to the CEO.

ISP's and cable. Healthcare as different from health insurance. We need to cut insurance companies out and go to single payer. Big Pharma needs a good shake up after years of shaking us down. Saline IV bag here, 800+ dollars, In Australia the same IV costs their government 6 dollars. Public education needs to compete against other public schools to show what their students learned and how they did it.

We also need the law reinstated the said news outlets had to report true facts or lose their license to broadcast. We need ALL lobbies moneys to be reported to the public, who got paid and who paid them. This needs to be done many weeks before the vote on any bill and we need a computer system that would deliver these votes to all of Congress and the President.

Healthcare is an area that for profit insurance businesses had to brought under regulations so that it would be available to all. However, we are not there yet. The political uncertainty negatively impacts health insurance premiums. Exclusion of the most vulnerable, sick or low income individuals, from having health insurance is still a political issue. All having health insurance is in the best interest of all. All individuals being included in a national healthcare insurance pool is just beginning to be to gain momentum in our nation. Healthcare is an area where insurance companies competition has failed because the profit incentive excluded the most vulnerable.

Imagine learning your electric bill is based on your credit score? Or your rent?
Why not let each state run their own commodity based needs. Alaska owns Alaska Airlines, Tesoro gas stations, the train etc. because people living in the bush shouldnt be punished for expanding the infastructure. Should the tiny home societies be disallowed? Should we HAVE to pay to live?

Yes, competition is needed! Great topic
Big Pharma and healthcare insurance is very evident
The banking industry is screaming for competition especially when STUDENT LOANS come to mind.

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