American Health Care and the Free-Market

People often point to the American health care system is a failure of the free-market. The problem lies in the fact that the American health care system isn’t a free-market:

To start with, the American Medical Association (AMA) has had a government-granted monopoly on the healthcare system for over 100 years. It has intentionally restricted the number of doctors allowed to practice medicine so as to raise physician incomes artificially. The primary way it does this is by using the coercive power of the state to restrict the number of approved medical schools in operation. After the AMA created its Council on Medical Education in 1904, state medical boards complied with the AMA’s recommendation to close down medical schools.

The American health care system is one of the most heavily regulated industries in the country. It’s a classic example of failure due to government interference in the free-market.