Monday, June 29, 2009

More Health Care Stuff

In Which Gred Mankiw Displays Alarming Ignorance about that Giant Glowing Red Triangle Across the River ~ Angry Bear
Claiming that there is currently a competitive market for health insurance in the USA is like claiming that they sky is green.

This is something that constantly amazes me. The health care insurance market in this country is a series of local monopolies or, at best, oligopolies. This is a sign either of profound market failure or a sign that it is a natural monopoly. If the former, then the government must step in to regulate the market so that it doesn't completely fail. If the latter, then the government should either provide the service or, as with utilities in many areas, set an allowed rate of return and closely regulate the behaviour of the providers of the service.

Hmmmmmmmmmm

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