alt Hacker NewsThe free market solution to this seems to be making it easy / easier for competitors to arise. Then, when private equity does this, the customers, and workers, just hop ship to a competitor that's better managed and the original clinic goes under.
I don't expect this happens in reality though. In general the things that happen in a healthy free market are NOT happening in our society.
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You’re confused because you are treating free-market and capitalism as the same thing.
Capitalism is about who owns the assets, free markets are about how they are transferred. They don’t require each other. State owned enterprises can participate in the free market, an example are municipal utility companies. Private enterprises can operate without a free market, an example would be Lockheed Martin, whose defense business is mostly cost plus contracts.
The US hobbled the free market with deregulation since the 1980s. We encourage monopolies with strange reactionary legal precedent, use tax and other policy to establish price floors on residential units and health procedures.
The behavior that these firms are able to carry on with in veterinary, dental, dermatology, hvac and plumbing is anti-competitive and predatory.
A business owner lamented to me recently that it wasn't the taxes that were crushing his business, but the costly regulations that keep on coming.
The harder the government makes it to operate a business, the less businesses there will be.
Free markets are a fiction, the real world contains a lot of friction.
This completely discounts the work involved to find service providers you trust. I spent a long time finding a Doctor I trust, finding a Vet I trust, etc. I don't want a "free market" solution where I need to switch providers every 6 months because some rich dude is being a dick.
This is the problem with so many market focused solutions. They discount the burden put on the consumer.