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Comment by plaguuuuuu | Hacker News Reader

You can't prove your free-market theory because it's not falsifiable.

This is why arguments about this go in circles. You either argue from a pure theoretic POV back and forth, or you go off data - at which point, bringing up every failure of free markets (like, obviously, US healthcare) is dismissed as "not really a free market"

Even the theoreticians on the free-market side are far less solid than.. all the other sides (behavioural economics, information asymmetry.. even Marx) but I regard it as deeply unpragmatic when there's so much data out there indicating what actually happens in the real world when you go one way or the other.

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> You can't prove your free-market theory because it's not falsifiable.

You can prove the logic part starting from the assumptions. It's also falsifiable. I just mentioned it was literally the most controlled test on human society you could make. We tested by splitting societies at the level of the entire planet, states and cities.

US healthcare is mostly not a free market; by free market, at minimum, I mean that the quantities and prices (ideally even the quality) are not set. The US healthcare system has a fixed number of practitioners who can get a license every year. This is as far as a market can be from being free (together with the case of having price controls). In fact, free market theory predicts that when you restrict quantity, you get higher prices for the same quality. It literally predicts the US situation.

It's funny you mention Marx, given I regard most of his claims as either unfalsifiable or easily proven false.

at which point, bringing up every failure of free markets (like, obviously, US healthcare) is dismissed as "not really a free market"

I mean, it's not. In a free market you'd have a choice of insurance providers rather than having to take whatever plan your employer offers, and you'd have some idea of what the hospital is going to charge you beforehand rather than receiving random bills for weeks.

Just to be clear, my definition of free-market is just that there is no centralised authority that can use force to set prices/quantities/quality/type of services offered. Of course, the fact that the employer has to offer health insurance in some cases is part of it not being a free market. But there are more fundamental things that make the US healthcare very far from being a free market. The first one is that the supply of doctors is capped in quantity, not just in quality.

Isn't that sitch just because employers get volume discounts?

isn't that the most free market thing ever?

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