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1. Comment by Jacob Steelman on 22 August 2009:

   The government has always been a promoter of cartels around the world. In fact that is one of the primary functions of government to permit the formation of cartels that othewise would be unlawful under antitrust law and generally frowned upon by consumers. The government has sponsored numerous cartels. One of the most infamous was the East India Company sponsored by the English government in the 1700s. The most notable in the USA is the Federal Reserve System which is the cartel for the financial industry, there is the Postal Service which is the monopoly for mail delivery and make work for the postal union employees, the FERC is the cartel of the natural gas industry and electric industry, the FCC is the cartel of the communications industry, the defense department has become the cartel of the defense industry and thus the promoter of war and the list goes on both at the state and national levels. What are the nature of cartels? Cartels’ primary purpose is to allocate markets and set prices at monopoly prices among its members. It is intended to create barriers to new entrants (ie deter competition). Without competion technological advancement is slow. Prices tend to be cost based (not competition based) thereby encouraging inefficiency and low productivity. Investors love cartels because of the relative price stability, the monopoly rents charged and the virtually guaranteed constant revenue stream. In other words very low investment risk. In a nutshell cartels are intended to thwart the demands of consumers for qualtiy goods and services at the most competitive prices. Cartels are intended to insulate the cartel members and their financiers from the rigors of the competitive marketplace. Why would Americans want to place a service as important and critical as health care in the hands of a government sponsored cartel?

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