Tuesday, March 27, 2012

Health Care Is Not A Commodity

I have seen a number of "let the free market run naked in the yard and nature will take its course"-type arguments about heath care. The main problem is, health care doesn't fit the traditional definition of a commodity. I don't want the government involved in the business of making things. But health care doesn't fit into the model that shows that market forces are best at allocating resources.

Please see this rather academic pdf for an explanation. Krugman weighs in here.

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