Freddy’s in Brooklyn is a happening place that has been named one of the city’s best bars by the Village Voice, Esquire, and The New York Times.

Unfortunately, Freddy’s—and the surrounding neighborhood—is smack-dab in the footprint of the Atlantic Yards project, a multi-million-dollar, 22-acre development that is intended to create “an urban utopia” in the language of developer Bruce Ratner, and a new, publicly subsidized home to Ratner’s Nets, who currently play NBA basketball (if you can call it that) in New Jersey.

But don’t mistake Atlantic Yards as one more instance of the market-driven transformations for which New York is rightly famous. It’s actually the latest case of eminent domain abuse, where private property is seized by the state on dubious grounds and then immediately handed over to private interests for private gain.

In this case, the Empire State Development Corporation has designated the thriving area as blighted to facilitate the taking of privately owned houses and businesses without having to pay full market value. Ratner, whose partners in the venture include rapper Jay Z and the Russian billionaire Mikhail Prokhorov, stands to pocket hundreds of millions of dollars on the deal, all thanks to the brute force of the state.

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Many advocates of health-care reform are admirers of Canada’s state-run, no-opt-out, single-payer system. Indeed, in 2003, President Barack Obama voiced enthusiasm for such a health-care program.

Proponents of Canadian-style health care should meet Cheryl Baxter, a Canadian citizen who waited years for hip-replacement surgery, only to be told that her operation would not happen any time soon. Instead of waiting, Baxter did what an increasing number of Canadians are doing: She flew to a clinic in the United States, paid out of pocket, and had a life-altering surgery in a matter of weeks rather than years.

Baxter’s experience doesn’t just throw damning light on Canadian health care. The sort of clinic she went to in Oklahoma suggests a different way of delivering health care in the United States, too: A simple fee-for-service
model in which providers openly advertise their prices, service, and reputation. Rather than a frustrating, complicated mess of intermediaries such as employers and insurance companies, U.S. health-care reformers should think about bringing medicine into line with the same dynamics that help deliver great service at great prices throughout most other parts of the economy.

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