thefreemasonswill-deactivated20 asked: "And again, with out government involved, anyone could provide you with insurance and there would be no restrictions on competition." Doesn't that mean that if there was a company good enough then they could monopolize the whole industry, since there would be no restrictions?
If you mean by monopolizing the entire industry they would provide the service cheaper, better, and more efficient than everyone while still making a profit.
But wouldn’t that be a good thing?
Only problem is this has never happened, ever, in a free market.
Monopolies are the product of the government. Only the government can grant monopolies through the use of force.
In your hypothetical example. Let’s say one company did become so efficient that they could prove cheaper and more reliable service than anyone else. But after a while they started to price gouge. Sure they would make heavy profits for a while. But it wouldn’t take long for another company to step in and still make good profits but charging less there by bringing down the price.
Only when government gets involved can a company price gouge with no worries. Since competition would have already been restricted by the force of government.