In the modern age, most countries are driven by capitalism. Capitalism is built upon the simple concept of supply and demand where the cost of an item or service is directly linked to the demand for that item or service. Normally a capitalism built on supply and demand runs without intervention and, in fact, runs better with less interference. For example, enforced rent control causes the prices of apartments to skyrocket because landlords have to offset their losses somehow. The natural ebb and flow of supply and demand prevents prices from becoming inflated and prevents prices from dropping so low it is no longer worth the cost to produce an item or provide a service. However, there are a few problems with relying completely on the natural flow of supply and demand in a modern society. One major business has stepped in and completely destroyed the supply and question curve for a variety of services: insurance. Insurance agencies, be it health insurance or automotive insurance, disrupt the natural balance of supply and demand and intentionally effect an environment where they prosper due to a viscous circle.

Supply and examine requires a careful balance between a consumers desire for a product or service and that same consumers willingness to pay the price residence for the product or service. If a consumer believes the price of a certain service to be too high, that consumer will not purchase the service or will accumulate another location where they can acquire the same service at a lower price. Conversely, a business providing a service must carefully balance the price of a service with the demand for that service. The business will raise prices so long as they are not loosing profit. When the label drives so many customers away that the business begins to loose profit, then the business will lower prices until they reach maximum profit again. This is the natural curve for a capitalistic society. Insurance, however, intentionally disrupts this natural process. With insurance in the picture, a consumer pays monthly on the off chance they may have to use their insurance. This monthly payment goes to the insurance company who will then mask all or part of the cost of whatever is insured. The consumer is able to afford a much greater price without fully realizing how much they are paying in the long hurry. A price that would have normally driven off a consumer is hidden over years of insurance payments. This process destroys supply and demand, which, in turn, destroys the very basis of a capitalist society.

Health insurance is one of the most destructive businesses in modern society. Many would believe that a hospital visit costs so noteworthy because of the high level of education required to be a doctor, or the expensive machinery vital to perform a variety of medical procedures. While both reasons are a section of the higher cost required for medical service, they are not the significant sources. Insurance artificially raises the prices of medical care by creating a higher demand for medical services through deferring the cost across a greater time period. Even worse, the insurance companies create an environment where a person can not survive without insurance. Since insurance companies allow a greater number of people access to the medical services, the demand goes up and thus the price raises to accommodate the higher seek information from. As the effect raises, the average person is unable to afford medical service without some form of insurance which leads right abet to the beginning. Insurance companies have intentionally destroyed the supply and demand curve for many services in order to create their acquire, skewed supply and examine where every person needs insurance.

In original years, the insurance companies have begun to restrict their payouts more and more. This sudden regression on payment is a express result of the distorted supply and demand curve. The medical service prices have risen so much that the insurance companies can not even afford to pay them anymore. As insurance companies pay less and less, more and more people will be left without the ability to pay medical bills. As a society, the US is very near a collapse in supply and demand where insurance is involved. The result of a collapse would be disastrous to the society as a whole because the cost of medical service will take far too long to adjust to the newly reinstated supply and put a question to curve. Insurance companies will eventually become obsolete, as they will not pay for anything, and consumers will refuse to carry insurance. Medical bills will remain too high for the average person to afford and, as a result, fewer and fewer people will receive medical services. For years, the country will see a spread in sicknesses and death.

The only solution at this point is for the government to take some steps to prevent a sudden collapse in the insurance world. Instead of allowing the insurance business to collapse quickly and on their terms, the government needs to create a plan which will slowly phase out insurance over the next five to ten years. The prices for medical services will be given time to adjust and the insurance companies will slowly disappear. After this point, the government needs to declare selling insurance an illegal occupation. Any business that so drastically affects the principals of capitalism, which this country is built on, should not be considered a legitimate business any longer.