| | "Indeed, automobile repairers are often suspected of this. What, apart from conscientiousness, keeps such folks on the straight and narrow is competition, the knowledge that if they don't do the work well enough someone else will jump in to do so."
Once again, as previously in Tibor's discussion of "private" health care, certain elemental facts are excluded.
In the case of health care, the issue was posed as private, "capitalist" health care vs. socialist health care. Were that it were so. In fact, we have now a mixture of private, fascist and socialist health care, with the corporate fascist model dominating. Naturally this system has produced a myriad abuse, corruption, malfeasance, danger to the patients and enormously overblown costs.
True private, capitalist health care would solve the problems, but the actual choice is between the above, actual system, which is demonstrably awful, and the potential of the addition of a lot more socialism to the mix, with possibly a reduction in the fascist element that is gaming the system to the detriment of patients and often providers as well. I.e., the cost/benefit of the shift is really impossibly complex to determine, but will probably happen regardless, as the public is truly FED UP.
In the case of automotive repairers, my own personal experience (as with the medical fiascos I have endured) informs me that I should not trust any auto repair shop that has not been recommended to me by someone who has used their services on a long term basis and who is very personally knowledgable about auto mechanics as well. Even then, I will be worrying about every little ping for years afterwards. This after having a couple vehicles destroyed by repair shops.
About every 8 years or so, here in California, there is a revelation by the State Fraud investigators about some new case of massive consumer fraud committed by some major auto repair chain, e.g., Sears, Firestone... Investigators will take a vehicle that is in perfect mechanical condition into the shop, complain about some noise, and then be told that they need a new motor or transmission. Then, having had the repairs done, they go to the next shop in the chain and are told the same thing. Often, over half of the repairs from some national repair chain will be bogus.
The problem is that we don't have a real mechanism, state or private, that effectively deals with this situation - ignorant consumers paying specialists who must be blindly trusted and who have a tiny incentive to be honest, compared to a massive opportunity to profit. One true free market solution might involve an insurance company or private fraud investigators performing the function now performed - obviously inadequately - by the state. But how would they make money on this?
Perhaps if they could cut a deal with the insurance companies that every business must pay in order to operate for a reward on catching fraud? Perhaps a shift to a "health maintenance" model, in which a repair service has a contract to keep your vehicle in good shape. Such warranties are often available, but for some reason appear to be underused. Perhaps everyone wants to believe that they are lucky? Like the alleged 90% of teenagers who believe that they are more attractive than the median?
At present, the state regulators are all we have to catch and deal with fraud. And the actual number of such inspectors is pitifully small, as in only a handful of personnel in the field of automotive insurance fraud for the entire state of California.
Similar problems can be found in virtually every area where consumers are essentially ignorant of the technical details of what they purchase. In the case of computers, for example, an ignorant public has for decades bought the latest version of MicroSloth Windoze, on the grounds that buying the market leader couldn't be too far wrong. However, the reality is that that very sentiment is the self-fulfilling marketing strategy that has kept MS the market leader, in spite of unbelievably primitive, kludgy and failure prone software. "Go with the leader" is all that Bernie Madoff needed.
Again, clearly the state systems designed to deal with fraud, etc. are inadequate, but for competition to step in and do the job will clearly require something that we do not yet have, as it is certainly not working very well to date. When your computer stops working, do you think that the local repair shop is likely to tell you that it only requires a simple change of a software option, when they could charge hundreds of dollars on a claim that you have no way of personally verifying?
Yes, the state regulators are inadequate, costly, and prone to perpetuating the problems. But without an alternative that actually works, what is the public likely to vote for?
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