NetDoc - Competition, innovation and the Sorceror's Apprentice: "The “wisdom of the market” is comprised of a sum of the decisions of rational consumers. In the example of computers, that wisdom determined what the cost of a computer should be in order that a significant number of consumers would buy one.
There is no “wisdom of the market” with regard to health care. Consumers, i.e. patients, are not wise. They are frightened, sick, and confused. That’s what happens to human beings when they are sick or injured. Patients are irrational consumers, and no amount of arm bending, medical websites, or cajoling on the behalf of medical economists is going to change that.
I would suggest that the medical economists who are also parents are just as irrational when their children are ill as any other human being.
Great Britain’s NHS lacks the competition that drives innovation. As a consequence it is greatly inefficient.
America’s unfettered free market lacks the rational “market wisdom” necessary for a demand side to direct the competition of the supply side. Patients are by definition irrational. There is no market wisdom in a health care system run according to the tenets of an unfettered free market. The supply side competes for profit alone, unfettered by any restraints."