The Unholy Trinity of Healthcare

by | Jun 2, 2021 |

Print Friendly, PDF & Email

There are two economic concepts that every American should understand, and they are very similar, so I want to discuss them together.

The first is what economists call the ‘unholy trinity of monetary policy,’ which says that a nation can pursue two, but not all three, of the following monetary policy directions: a fixed/pegged exchange rate, an independent monetary system, and free movement of capital. If a country could do all three of those things simultaneously, it could print money out of thin air without causing inflation, and we could end scarcity. Countries have been trying throughout recorded history to do all three of those things simultaneously, and the amount of harm done to flesh and blood human beings by these failed attempts to do all three things is incalculable.

Show me a war, and I will show you at least one country that tried to do all three of these things.

Another unholy trinity has also done incalculable harm to flesh and blood human beings, but that does not get discussed as often, and that is the ‘unholy trinity of healthcare.’ As with the unholy trinity of monetary policy, a country can pursue two, but not all three, policy directions: quality, affordability, and universality.

Somehow, if I tell people that a country cannot print money while letting capital flow freely without seeing inflation, they get it. We know intuitively that scarcity exists and that we must make trade-offs with regard to monetary policy. Somehow, however, people do not apply the same rules of scarcity to healthcare.

We would get better policy decisions if we did.

We can have universal healthcare, but we have to sacrifice quality and/or affordability to have it. The reason prices are skyrocketing under Obamacare is that Obamacare tries to have universal healthcare without any quality sacrifices, making healthcare prohibitively expensive. We are reaching a point where we all have healthcare insurance, but the deductibles are so high that only the rich can afford to see a doctor, and in the meantime, about half of all Americans pay more for their healthcare insurance than they pay for their homes.

Obamacare did not fail so much as it made a bad set of trade-offs.

If we want healthcare that is universal and affordable, we have to let the quality suffer, and the more affordable it becomes, the worse the quality will be. If you want healthcare that actually helps keep you healthy, it will either not be universal, or it will not be affordable.

Most economists would prefer that we have high-quality, affordable healthcare. Most Republicans want this too. Of course, that means it will not be universal.

We have to make trade-offs.

In the past, we used Medicaid to cover healthcare for the poor. Everyone else had to decide for themselves what kind of insurance, if any, they wanted to have, and then based on those decisions, if they had to see a doctor, they had to pay whatever the insurance did not cover. We had the highest quality of healthcare in the world, and it was affordable, but some people would go bankrupt if they gambled on insurance and then got sick.

Thanks to wage controls in the 60s, employers began to supply healthcare insurance as a fringe benefit. They did not do this because there was a great demand for employers to provide insurance rather than more pay, but because the government would not let them pay more. Insurance was something they could provide to attract workers.

Government, thinking that employer provider healthcare insurance was a good thing, made it tax-free, encouraging more and more employers to provide it.

An obvious downside to employer-provided insurance is that you lose it if you change jobs. Obviously, an insurer is not going to cover you for something you already have when you first get insurance (that would be like trying to get car insurance only after you crash your car), so having people changing insurance programs every few years, as they changed jobs, made pre-existing conditions a major problem.

That is where we were before Obamacare. We had another problem on top of that: too many onerous government regulations created waste and increased the cost of providing healthcare.

The solution to all of this is not single-payer healthcare. Single-payer systems have the same unholy trinity that all healthcare systems have – they can only control costs by reducing quality – but with no incentive to reduce waste, they always reduce quality, and often at a higher cost.

A free-market system provides incentives to reduce waste and improve quality. Price becomes a way to balance the unholy trinity, allowing different providers to provide different levels of quality at different prices, generating the optimum mix for society at large.

As for insurance, the government must either make healthcare insurance tax-free when bought by individuals, or it must remove the tax-free status employer-provided insurance currently gets. Either of those options will encourage employers to get out of the healthcare insurance business, and encourage individuals to find insurance on their own that will be portable when they change jobs (solving the problem of pre-existing conditions).

Government must also let individuals join pools to buy insurance in groups so that individuals can negotiate on price with the same clout companies have.

Free market healthcare and free-market insurance are the only way to go. Sadly, it is a hard sell for the very reason it works: by making the optimal balance between the unholy trinity, it also admits that the unholy trinity exists. When given a choice, the public wants to vote the unholy trinity away, even though doing so is impossible.

The fact that the people tend to vote to do all three things, both with monetary policy and with healthcare, in spite of those attempts always failing (and often doing great harm), is why these two trinities are called ‘unholy.’

Our inability as a society to recognize the need to make trade-offs makes the ideal balance of trade-offs (a free market) difficult to sell. The public likes to vote for perfection, even in an imperfect world. Because of this, many voters will vote for people who over-promise and then fail to deliver. Propaganda can further pull voters away from rational tradeoffs, and the result is incalculable harm to the public at large.

Wallace Garneau

Wallace Garneau is a two-service military veteran, with four years in the United States Marine Corps Reserve, and four years in the US Army. He has twenty-three years of experience in process improvement roles, having served as the E-Commerce Manager, IT Manager, and Director of Business Systems for a variety of medium to large manufacturing companies. Wallace holds a Bachelors of Science from the University of Phoenix, and an MBA in Lean Manufacturing from the University of Michigan. Wallace is currently finishing a Masters of Science in Lean Manufacturing, at Kettering University.

Wallace is a published poet and essayist, and recently finished his first book - The Way Forward: Lean Leadership and Systems Thinking for Large and Small Businesses.

Notify of
Inline Feedbacks
View all comments

Disclaimer: The information contained in this website is for educational, general information, and entertainment purposes only and is never intended to constitute medical or legal advice or to replace the personalized care of a primary care practitioner or legal expert.

While we endeavor to keep this information up to date and correct, the information provided by America Out Loud, its website(s), and any properties (including its radio shows and podcasts) makes no representations, or warranties of any kind, expressed, or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to its website(s) or the information, products, services or related graphics and images contained on the website(s) for any purpose.

The opinions expressed on the website(s), and the opinions expressed on the radio shows and podcasts, are the opinions of the show hosts and do not necessarily represent the opinions, beliefs, or policies of anyone or any entity we may endorse. Any reliance you place on such information is therefore strictly at your own risk.

At no time, nor in any event, will we be liable for any loss, or damage, including without limitation, indirect or consequential loss of data or profits arising out of, in an association of, or connection with the use of this website.

Through this website, users can link to other websites that may be listed. Those websites are not under the control of America Out Loud or its brands. We have no control over the nature, content, or availability of those sites. America Out Loud has no control over what the sites do with the information they collect. The inclusion of any links does not necessarily imply a recommendation, nor does it endorse the views expressed with or by them.

Every effort is made to keep the website up and running smoothly. However, America Out Loud takes no responsibility for, nor are we, and will not be liable for being temporarily unavailable due to technical difficulties beyond our control. America Out Loud does not sell, trade, nor market email addresses or other personal data.

Use the code ‘OUTLOUD’ and receive your 20% discount on your first order.

COVID Q & A with Dr. Peter McCullough #14

COVID Q & A with Dr. Peter McCullough #14

Can Dr. McCullough, talk more about pericarditis? Everyone mentions myocarditis, but there are never any statistics mentioned for pericarditis. In Australia, there are twice as many reports of pericarditis than myocarditis from vaccines. What are the dangers of having Covid naturally and then getting vaccinated? Wasn’t there a thought that you should not get vaccinated for 90 days after having Covid?

Hunter Biden, Paul Pelosi Jr. and A Swamp of Thieves

Hunter Biden, Paul Pelosi Jr. and A Swamp of Thieves

Hunter Biden was earning an $80,000 monthly salary from the Ukrainian energy company and why he concocted a billion-dollar deal with a Chinese investment firm, 10% of all earnings of which were destined for the coffers of the family’s mob boss, Joe Biden himself. But why stop with the Biden’s? Speaker Pelosi’s son, Paul Pelosi Jr. has been linked to at least five businesses under investigation for alleged fraud…

Global Failure of Public Health on Pandemic Response

Global Failure of Public Health on Pandemic Response

PM Boris Johnson announced that his country is to move into mitigated COVID restrictions, dropping the legal requirement for face masks and COVID passports. Meanwhile, the European Union drug regulators warned frequent COVID boosters could adversely affect the immune system. While both of these developments are not declaring an end to mass vaccination, they are setting the framework to announce a…

The China Virus Game of Funding Cover-Up

The China Virus Game of Funding Cover-Up

A close examination of the newly unredacted emails reveals that none of the usual justifications for redactions, such as private information about people or threats to sources and methods, apply. All appear to have been made solely to shield Fauci and the NIH from scrutiny over its cover-up of the virus’ origins. Also involved in the obfuscation effort were Fauci’s boss, recently retired NIH Dir Dr. Francis Collins…

This Week In COVID: Hospitals, Please Stop Killing Our Loved Ones!

This Week In COVID: Hospitals, Please Stop Killing Our Loved Ones!

Patients never have the same doctor or nurse 2 days in a row. Family advocates STILL aren’t allowed to be bedside. The ‘Science’ isn’t being followed, but the ‘Money’ is being chased after. Doctors aren’t THINKING, they are OBEYING. One-size-fits-all does NOT work for high-risk patients or any patients. If you agree this is wrong, help us fight for what’s right…

The Questionable Merger of a Global Reverse Biotechnology Corporation

The Questionable Merger of a Global Reverse Biotechnology Corporation

The former corporation of Senomyx, once headquartered out of La Jolla, California, allegedly used aborted Fetal cells in its food and beverage products while in collaboration with some of the world’s largest leading food and beverage corporations. It’s up to us as individuals to do our own research and question everything about anything, right down to the ingredients in the fragrances and beauty products we purchase…

Why Ukraine Matters to America

Why Ukraine Matters to America

Putin was severely stung by the collapse of the Soviet Union and what he perceived as gloating on the part of American politicians and others in the West. Putin set it as his primary goal to get payback for what he viewed as the insults that were levied against Mother Russia. I recall at the time commenting that we needed to tone it down…

England’s COVID Liberation: Real or Ruse?

England’s COVID Liberation: Real or Ruse?

Prime Minister Boris Johnson’s sudden change of direction leaves one to wonder if he is genuine in his thoughts and motives. Has he finally figured out that masking, isolation, jabs, and distancing never availed us any good? Probably not. Johnson has endured increasing pressure to resign due to his cultic mandates. Being freed from vaccine passports, mask mandates, classroom restrictions, isolation…

Anthony Fauci’s Rules: The Rule of Two

Anthony Fauci’s Rules: The Rule of Two

We are not in a pandemic anymore, but Fauci told us just the other day – and repeated the following day – that though Omicron may be mild, that does NOT mean we can relax restrictions, so like the Little Engine that Could (Not), we just keep chugging up the mountain, knowing we will never reach the top. The Biden Administration, in the meantime, tells us to grow up and manage our expectations…

Flip-flop Joe Must Stay the Course on Off-shore Drilling

Flip-flop Joe Must Stay the Course on Off-shore Drilling

Just before holding the lease auction, the Biden administration said the lawsuit did force them to make the oil leases in the Gulf. Now, flip-flop Joe’s administration says they did not have to go ahead with the lease auctions. In response, the environmental group Earthjustice launched a lawsuit on December 3rd to halt the leases before they come into effect in…

Your Source for Free Speech, Talk Radio, Podcasts, and News.


Here we take on the challenges of our generation so that we can preserve future generations. Please consider making a contribution in the fight for liberty!


The greatness of America lies not in being more enlightened than any other nation, but rather in her ability to repair her faults. - Alexis de Tocqueville


The APPS are free; the mission is priceless!

Free APP
Healthycell Telomere

Podcast Networks

Apple Podcasts
Google Podcasts

Subscribe and Listen on Your Favorite APP

Our Columnists and Show Hosts

Truth For Health

Apple Podcasts

COVID Solution Summit

Apple Podcasts

Evacuating Americans & fully-vetted Afghan's at Risk - Help Us!

Apple Podcasts

Empowering and mentoring conservative trailblazers from Generation Z to win!

Apple Podcasts

Turning Point Action is Recruiting Precinct Chairs - Become a Grassroots Warrior Today!

Apple Podcasts

Please join us to protect the Supreme Court:
Sign the Petition!

Apple Podcasts

The LATINO USA EXIT from the Democrat Party, click for details...

Apple Podcasts

Fighting corporate censorship and ensuring voter integrity...

Apple Podcasts

Support wounded and fallen police officers. The Wounded Blue.

Wounded Blue
Share via
Copy link