Evеrу оnсе іn а while, аn individual оr group suggests thаt hаvіng thе government оwn аnd operate а province’s car insurance business іѕ “The Answer” tо thе insurance problem оf thе day. Thеѕе people tend tо bеlіеvе thаt а government-run monopoly wоuld lead tо cheaper prices аnd increased benefits. Whіlе іt іѕ true thаt thе government-run insurers іn Manitoba аnd Saskatchewan hаvе lоwеr premiums іn dollar terms, consumers іn thеѕе systems hаvе fаr fеwеr benefits. In Manitoba, fоr example, аn accident victim whо іѕ catastrophically injured hаѕ nо rіght tо sue fоr economic losses – including future lost wages – thаt аrе оvеr аnd аbоvе а predetermined amount. Whаt fеw people realize іѕ thаt insurers provide car insurance wіthіn а strict framework оf provincial laws аnd thаt thеу аrе supervised bу а number оf government agencies, including rate review boards аnd bоth federal аnd provincial regulators. Car insurers deliver а product thаt іѕ defined bу thеѕе laws аnd regulations. In mаnу cases, thoughtful аnd far-sighted government reforms оf thеѕе laws аnd regulations hаvе reduced thе cost tо provide insurance іn mаnу provinces and, аѕ а result, premium prices hаvе reduced. Whаt “government-run” rеаllу means Huge start-up costs. Depending оn whеrе уоu аrе іn Canada, thе average cost tо establish а government-run insurance company wоuld bе $300-$500 million. Thіѕ іѕ thе money required tо buy buildings, hire staff, obtain sufficient start-up capital аnd cover operating expenses. It includes thе costs аѕѕосіаtеd wіth providing thе resources tо handle аll thе claims, tо provide insurance fоr аll thе cars іn thе province аnd tо mаkе uр fоr thе shortfall іn funding fоr public services resulting frоm thе withdrawal оf taxes аnd health levies сurrеntlу paid bу thе private insurance industry. Huge bail-outs. All government-run auto insurers іn Canada hаvе required taxpayer subsidies аѕ а result оf charging tоо lіttlе іn premiums аnd hаvіng insufficient start-up funds. In 1975-76, BC taxpayers hаd tо bail оut thеіr government-run insurance company – Insurance Corporation оf British Columbia (ICBC) – іn thе amount оf $181 million ($645 million іn 2006 dollars), јuѕt twо years аftеr іt hаd begun operations. Thіѕ money hаѕ nеvеr bееn repaid. At thе ѕаmе time, ICBC hаd bееn ѕо mismanaged, wіth insurance bеіng sold significantly underpriced, thаt thе government wаѕ forced tо increase rates bу аt lеаѕt 25%. Reduced private sector investment. Private home, car аnd business insurance companies dіrесtlу invest іn thе provinces іn whісh thеу dо business.
A Canadian Dermatologist who once worked in the United States breaks down the pros and cons of Canada’s health care system and explains why he thinks the Canadian system is superior to America’s. Canada runs a single payer health care system, which means that health care is controlled by the government rather than private insurance companies. One of the main pros of the Canadian health care system is that everyone is insured. He says that in the province of Ontario, the Ministry of Health insures all of its citizens, all important health needs such as physician visits, home nursing and physical therapy are covered. Since every resident is covered under the government plan the problem of patients being turned away due to lacking medical coverage
I have never had a strong opinion on monopolies in Canada. However, I believe that monopolies can stifle innovation, competition, and affect the prices that the consumer has to pay for a product or service. Since we live in a mixed market economy, Canada has very few monopolies such as the health, airspace, and telecommunications industries. Companies within theses industries are notorious for price fixing, lack of innovation, and competition. These problems are prevalent because of the barriers to entry the new players face such government regulation, the cost of doing business, and infrastructure.
A simple comparison to the US system is difficult considering the multitude of insurance plans with variable premiums and the wide array of coverage depending on company size and other factors. Different from the French system, American employers do not buy insurance based on a percentage system and the money does not flow into a few National Health insurance funds, rather...
Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles, boats, and other recreational vehicles, in comparison to its competitors. The motorcycle insurance sector is a 10.4 billion dollar industry and growing (PRWEB, 2012). The U.S. Department of Transportation website reports some astounding figures, including that 5,370,035 motorcycles were registered three years before the article, 7,138,476 motorcycles registered at the time of the article, and grew to 9,477,243 registered motorcycles at the end of 2012 (NHTSA, 2013). It is obvious as to why Allstate would identify motorcycle insurance as a worthy lifestyle product to devote marketing research dollars into in order to develop new strategies for cornering a share of the market.
2. Provide an example of a government-created monopoly. Is it a bad public policy? Why?
Second: The break of monopolies or “trustbusting” began in the late 19th century with President Roosevelt. However, it was the Sherman Act passed by Congress in 1890 that really began dismantled large monopolies. The Sherman Act “was based on the constitutional power of Congress to regulate interstate commerce” (Sherman Anti-Trust Act (1890). This act helped dismantle many of the monopolies that had been formed by companies’ trusts such as Northern Securities Company, Standard Oil and the American Tobacco Company. These companies had shareholders put their shares into one trust so the company could control “jointly managed” businesses and keep their prices low. This gave little competition to the major monopolies as other smaller companies could not stay in business and have such low prices. With the help of the courts monopolies continue to be kept at bay and competition continues to be encouraged within industries today.
Canada’s health care system is one of the top in the world; due to the federal legislation for publicly funded health care insurance. Requiring provinces and territories to follow certain conditions and guidelines to maintain universal health care, which is known as the Canada Health Act passed in 1984. There are five main principles within the Canada Health Act; public administrations, comprehensiveness, universality, accessibility, and portability. Moreover there are three aspects within the principles, equity, access and undeserved. Several marginalized populations do not receive the adequate health care even though the Canada Health Act is in place to help “protect, promote and restore the physical and mental well-being of residents of
Our history of 20th century of Canada on the treatment on immigrants was indeed bias and still occurs to some extent today. Numerous amounts of immigrants were into lose if not all, but very many of their belongings, valuables and family behindhand, to posses a Canadian citizenship. People travelled extensive distances to seek better lives; Canadians faced many with racism because of their differences, in fact it influenced ruined many lives. Immigrants in the past were shamefully discriminated against and exploited by the Canadian changing role of government, producing a dark side to Canada’s history. The three events that accurately validate that immigrants had tough lives were, “The Boat of People,” Chinese due to Chinese Exclusion Act, and the most improved, Merit Point System. These have effected Canada’s society significantly in a negative manner and have helped us learn, improve and equalize our society for everyone.
The Postal Service Monopoly In the United States economy most markets can be classified into four different markets structures. But, each and every market in the United States is completely unique from the others. Generally the best type of market structure for the general public is per- fect competition because it creates the lowest possible price for the public.
Regulation plays a huge role in the healthcare industry. The healthcare industry restrain of health care costs by imposing price controls ignore the long history of failure through that process. Regulated prices prevent markets from efficiently allotting resources, leaning to unescapable deficiencies and failing quality, while boiling improvement and averting care to inequitable black markets. Internationally, tight price controls in Japan manifest many of these failures, while the Netherlands has relished advances in cost and quality by abandoning them for market-based pricing. Government –fixed prices for hospitals in Maryland and under Medicare have worked only to expand costs and the power of providers. Now, with Obamacare increasing the taxpayers’ duty for funding health care, all knowledge proposes that efforts to regulate provider prices will likely prove expensive and counterproductive.
The current issues that have been created by the market have trapped our political system in a never-ending cycle that has no solution but remains salient. There is constant argument as to the right way to handle the market, the appropriate regulatory measures, and what steps should be taken to protect those that fail to be competitive in the market. As the ideological spectrum splits on the issue and refuses to come to a meaningful compromise, it gets trapped in the policy cycle and in turn traps the cycle. Other issues fail to be handled as officials drag the market into every issue area and forum as a tool to direct and control the discussion. Charles Lindblom sees this as an issue that any society that allows the market to control government will face from the outset of his work.
Canada is the best place in the word to do business and foreign investment. According to forbes magazines Canada is the best country in G20 for business and banking system has also rated as the world 's soundest for the past six years. There are some countries in the world with a triple A rating and Canada is one of them. This provide confidence to investors to do business in Canada.
The idea of a single entity dominating a product or service in an industry is a controversial topic for Canadians. A monopoly is, “a single company or group who owns all or nearly all of the market for a given type of product or service. By definition, a monopoly is characterized by an absence of competition, which often results in high prices and inferior products” ("Monopoly Definition” Investopedia). The word “monopoly” derives from the Latin term, “mono” meaning single and “poly,” for seller (Benjamin, “Different Types of Monopoly Practices”). To many, monopolies generate “efficiency, are customer-orientated, innovative, high quality and low cost” (MORGAN, "Canada 's Monopoly Health-care System”). One may argue against this statement. There
In order to successfully expand it’s services into Canada, Uber needs to focus on a Strength & Opportunities strategy. The sources that were selected are all recently published to ensure up-to-date information.
Recently, Canada’s health-care delivery has undergone changes, affecting access to services. Although Canada’s public health-care system is universal, privatization of health-care services has increased in the past two decades (Ives et al., 2015, p. 150-151). Privatization is “a shift from the public sector to the private sector in the provision of health services, often with the assumption that the individual rather than the state must pay for these services” (Clarke, 2016, p. 413). The privatization and delisting of health services