Economics in one minute:
You’ve won a record lottery jackpot worth $1 billion dollars. At 11:50p on the last day you can claim this ultimate prize, you’re standing at the convenience store counter where you bought the ticket. Officials are there to hand over your check. All they need is for you to sign your ticket in ink, and the deal is done. But there’s a problem
Including you, no one in the store — clerks, lottery officials, janitors – has a pen. In walks Joe, the only guy for miles, who was intent on a cup of coffee. He hears your story, and offers you the pen in his pocket for a price. What’s it worth to you?
You’ve just learned the law of supply and demand. Joe has the supply, you have the demand. You two will negotiate a price, free of external influences. A couple hundred thousand, maybe? How about half? It’s up to you two.
Change this scenario to you needing the same pen to sign a $100 lottery ticket. What’s the pen worth now? Not nearly as much, right? There will still be a negotiation and free exchange of perceived values. Maybe he’ll just give it to you and ask you to buy his coffee. Maybe he’ll be a jerk and demand half. The lesson is there is a need and that need can be filled with the free exchange of perceived value between parties. Now apply this example to every transaction that takes place every day around the world, millions upon millions of times, with varying needs and varying values to fulfill those needs. How in the world do local, state, and federal governments presume to micromanage all of this?
Let’s talk cancer. It has become the leading cause of death around the world second to heart disease. Most of us have been affected tremendously by having cancer, or having someone close to us with cancer.
As it turns out, we could have a cure within a year.
A small team of Israeli scientists think they might have found the first complete cure for cancer.
“We believe we will offer in a year’s time a complete cure for cancer,” said Dan Aridor, of a new treatment being developed by his company, Accelerated Evolution Biotechnologies Ltd. (AEBi), which was founded in 2000 in the ITEK incubator in the Weizmann Science Park. AEBi developed the SoAP platform, which provides functional leads to very difficult targets.
Our cancer cure will be effective from day one, will last a duration of a few weeks and will have no or minimal side-effects at a much lower cost than most other treatments on the market,” Aridor said. “Our solution will be both generic and personal.”
This sounds like science fiction, much like the many failed attempts to create cold nuclear fusion. But this highlights the lesson that capitalism is the best economic system known to man.
This potential cure was not created by a governmental body. There was no health board of self-important bureaucrats, directing the lives of people across the country or world, throwing out decrees from on high to make a better world. Instead, a group of businessmen and scientists with shared goals made the choice to use their physical and intellectual resources to solve a problem (you might say “deliver value”) and, yes, make money in the process. What would a cancer cure be worth to you?
As I said on Twitter, I hope these people make Jeff Bezos look like a pauper.
But wait, there’s more. There’s always more.
If 2020 presidential candidate Kamala Harris has her way, cures for cancer will never happen (emphasis mine).
[Jake] Tapper: Just to follow up, on that, correct me if I’m wrong. To reiterate, you support the Medicare for all bill, initially co-sponsored by Sen. Bernie Sanders, you’re also a co-sponsor. I believe it will totally eliminate private insurance. So, for people out there who like their insurance, they don’t get to keep it?
[Kamala] Harris: “The idea is that everyone gets access to medical care and you don’t have to go through the process of going through an insurance company, having them give you approval, going through all the paperwork, all of the delay that might require. Who of all of us have not had that situation where you have to wait for approval and the doctor says, ‘I don’t know if your insurance company is going to cover this. Let’s eliminate all of that. Let’s move on.”
You do not work out of the goodness of your heart. To pay for your house, food, clothing, car, children’s activities, etc., you do not work free. You are paid to do what you do. So if you eliminate incentives to work hard, especially in an industry that represents 1/5 to 1/6 of the US economy, say goodbye to reasons to innovate and find cures for anything.
God bless Israel, and God bless capitalism!
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