Marketing Health Care

30 July, 2009

SyringeEconomist Paul Krugman claims that the market cannot provide health care, because of the inevitable conflict of interest between health insurers and consumers. He draws far too many conclusions from the phenomena that he observes.

The health care debate tends to conflate the two elements associated with a market: supply and demand. The imperfections in the free market affect both sides differently, and require different approaches. Luckily though, they can be separated and dealt with accordingly.

Read the rest of this entry »

Increasing Efficiency in the Market for Death

20 April, 2009

AlcoholThere are no hard and fast rules when it comes to governance. If an individual makes a decision that entails harmful health side-effects, or risks catastrophic negative health implications, the state neither automatically bails him out nor always leaves him to take responsibility for his own actions. Rather, one must take a balanced view of the imposition that either policy places on other individuals within society.

For example, if the worst consequences of alcohol abuse was increased demand for livers and there were plenty of them, there would be no problem in facilitating this rescue. If, on the other hand, successfully transplanting a new liver into someone who formerly abused alcohol resulted in the destruction of several livers and at the cost of millions in costs to the public health service, we would be less inclined to rescue the individual. The reality of the cost imposed on society lies somewhere between these two extremes.

Read the rest of this entry »