Obama says that thepublic sector needs to get into the healthcare biz to create competition. That makes for a curious inversion. Ordinarily it is the private sector which is supposed to have competition…so what gives? The truth is that the problem with Healthcare isn’t too much private sector, it’s too little market. In fact there is essentially no market in Healthcare. Who goes to their doctor and asks “How much for a physical?” Who price shops medicine? Pretty much nobody. The thing is that the public sector can’t “create” competition, it can only command and control. When it gets into the healthcare game, it will push out the private sector, because that is quite simply in its economic self interest. But it doesn’t need to. What needs to happen is for the price system to actually be put into practice in healthcare. Because without prices, there is no market. That is what is wrong with the whole system. It isn’t the market-it’s the absence of one.