Entries from June 2006 ↓

George Soros and his Open Society Institute

If I had to pick the one person on the planet who I admire most at the moment, it would probably be George Soros. I was reminded of this when he recently poked his head up and said some intelligent things on Rocketboom - major kudos to Amanda for scoring an interview with one of the planet’s major players. One very appropriate question given her audience - how does he use the net? I was interested to discover that he uses it “through other people” - a pity, I think it’s better to get your feed unfiltered. I guess it all depends on whether your people are paid to give you the truth, or shield you from having to know the truth. [1]

Anway, what I admire about Soros as a philanthropist is that he has a great grasp of the complexity of human societies, just how hard it is to effect any significant change, and then he goes ahead and does his best anyway, without fear of the inevitable failures. He isn’t hoping to find easy answers or make flashy gestures, but he knows that there are things that can be done that definitely help - like investing in education and health, and monitoring government activity, that will gradually move a society in the right direction.

I think quoting Soros is the ultimate answer to naive libertarianism and free-market fanatics. It’s obvious that he has a very strong understanding of the world financial markets, from which he has made billions, but he is also very clear that markets are not enough on their own, and can do some serious damage if left unchecked.

“We need to maintain law and order. We need to maintain peace in the world. We need to protect the environment. We need to have some degree of social justice, equality of opportunity. The markets are not designed to take care of those needs. That’s a political process. And the market fundamentalists have managed to reduce providing those public goods.” - George Soros

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The value of a public healthcare system

Every now and then various people in New Zealand complain about our health system and say that we would be better off if we privatised it. I think they’re wrong. I think they’re practicing reflex libertarianism, or free-market fanaticism, without looking at the actual facts of the matter.

Frankly, I’ll take our somewhat inefficient public healthcare system over the mindnumbingly expensive US private healthcare system any day of the week, or year, or millenium for that matter. Apparently, as a percentage of total GDP, the Americans pay more to handle the admin costs for their health system than we do to handle the entire thing. I think it’s all to do with the fact that private health insurance companies and providers naturally gravitate towards the formation of a system that maximises the public’s spending on health, and then they use the massive profits derived from that spending to pay lobbyists to ensure that the system stays bloated, inefficient and profit maximising.

Inefficient? Bloated? Surely an inefficient provider would be destroyed by leaner competition? It just doesn’t seem to work out that way. Perhaps it would work out if the health providers were competing with each-other, but in practice they’re mainly competing with all the other things the government and the public might want to spend their money on, and the people who pay the lobbyists in Washington are smart enough to realise that. 1

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