Monday, January 07, 2008
Things That Don't Work And Why They Don't Work
The postal service doesn't work. It doesn't work because it's not really a business. The postal service doesn't care if you're unhappy. There's no reason to care because you need the postal service more than the postal service needs you.
The BCS National Championship doesn't work. It doesn't work because it doesn't have to work. Money is being made even when the system is broke. Why change anything when your customer base can't do anything about it? Especially if you're still making billions of dollars off those unhappy customers.
The healthcare industry doesn't work. It doesn't work because it forces the good guys to pay for the bad guys. Your hospital bill is so high because the hospital assumes that a few of you aren't going to pay for your visit. As a result, the hospital overcharges to compensate for the loss. And there's no reason to change because it's working. At least in their eyes.
The reason all of these things don't work is because there are no choices. Combine that fact with the other fact that they are making more money than ever and you can see why nothing will change anytime soon.
The only way to change anything is to incorporate choice into the equation. Choice means that competition is alive. And when competition is alive, the free market works at its best.
For example, think about the cleaning industry. You have sooo many choices when it comes to cleaning. And when there are lots of choices, you (the consumer) gets rewarded with a broad spectrum of choices. Those choices range from cheap cleanings to higher quality cleanings. You get to choose. Everyday!