we could argue that the private sector sacrifices quality for profit, so in the end we're almost on the same.
less efficient and prone to waste...you are just generalizing based upon faulty systems of the past?
I wouldn't discount past examples, of course, but no, I'm not generalizing based on that. I'm basing my statements on economic reasoning. For example, I find your proposed argument about the private sector sacrificing quality for profit, and thus arriving at less overall efficiency, to be faulty.
In a free market, products, prices, and quality are all determined by the incredibly complex interaction of the market, which ultimately boils down to the interaction of individual buyers and sellers freely exercising their preferences. Prices will rise and fall to meet those preferences, with quality being one of the factors of influence. Let's say ABC Company manufactures and sells the most popular widget on the market. ABC Company decides to increase profits by lowering quality. If the price/quality ratio they bring to the market does not meet the market's preferences, other companies will step up to the plate to meet the market need. Alternatively, if the market finds the price/quality ratio acceptable, then it is a fair price. However, even at a fair price, if there's a great deal of profit being made at that price point, it's *still* very likely that another company will step up to slightly undercut ABC Company with a product of equal quality. Thus, the free market system of prices and competition naturally arrives at the most efficient use of capital and the fairest market price to match what the market desires.
One problem with systems of centralized control is that the managers of the system believe they can understand, manipulate, and control all the countless variables and possibilities in the market. They believe they can accurately and efficiently predict the preferences and needs of all the individuals invovled. Et cetera. This is a conceit of the highest order, in my opinion. They can't do it. Their control does not do the job that the free market does, and it stifles creativity and innovation that would otherwise be present in the market, making it even more efficient and adaptable.
I could write a great deal about economic theory, and my criticism would not be solely directed at socialist systems, but also at the approach that is currently being used in "Western world" -- we're a very long way from actual laissez-faire free markets. I subscribe to Austrian economic theory. To anyone interested, I'd recommend some of the following:
An Introduction to Economic ReasoningThe Politically Incorrect Guide to CapitalismEconomics in One LessonEconomics for Real PeopleThe Road to SerfdomOn the subject of socialism, in particular, I recommend Ludwig von Mises's
Socialism and Hayek's
The Fatal Conceit.
...and besides in reality the private sector eventually ends up in cartels and other types of monopolies, where you have even less influence.
The most common reason that cartels and monopolies are sustainable is because of government intervention and laws that support monopoly position. For details, see
The Sources of Monopoly, by Sudha R. Shenoy. There's also an in-depth discussion of monopolies in chapter 10 of Rothbard's
Man, Economy, & State. (Also see the
study guide to chapter 10.) Another relevant book is
Antitrust and Monopoly: Anatomy of a Policy Failure, by Dominick T. Armentano.
Lastly, while I do not agree that monopolies are a natural or inevitable result of a free market, even if were to grant the case of a market-caused monopoly, I would rather have a given product or service provided by a monopolistic ABC Company, rather than a monopolistic government, which will also have a monopoly on violent force (among other things). There would be less chance for harm, and more chance for the monopoly to be undermined and neutralized.
edit: oh and just for the record...i'm not saying that social health care is the absolute and best way to go, but like most things choosing a middle path is the wiser choice.
I think that the only benefit of a socialized health care system is the allowance for health-care for those who could not normally afford the service. However, I think a free market system provides that, too, but in a voluntary and non-coercive manner. Firstly, absent foolish intervention by the government, insurance would be much more widely available and cheaper. Additionally, I do not discount the effect of private charities (including policies by individual hospitals and doctors for providing care to those unable to pay) in a free market system. See
here and
here for more thoughts on that subject.
I agree with you that often, a middle path is a wise compromise. However, in the case of socialistic policies vs. free market policies, I don't agree; I see it as a thirsty man taking a "middle path" by mixing salt into his fresh water, rather than just drinking the water.