September 9, 2003 by AK
Medical systems compared and discussed…
One note: libertarians, it seems to me, should switch their focus from praising free markets to discussing those cases when markets fail in order to come up with solutions alternative to government intervention. Sometimes markets fail because of government interference, but sometimes the reason is asymmetric and/or imperfect information, some party’s excessive bargaining power, lack of collective action and other real-life imperfections. Eventually, markets sort themselves out, but the outcome is not always efficient enough for society to applaud the virtues of free commerce.
US insurance seems one area where government regulation is benefitting those with a huge bargaining power — large insurance companies. Even so, the US seems to be beating the NHS on most counts.
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