Arnold Kling on the health care madness

Here is an article written by Arnold Kling over at TCS. He talks about how health care ought to work. This is the money quote:

Suppose that a group of friends is getting ready to go out for dinner. At first, they consider a fancy restaurant, but then it is pointed out that the price of a meal there is higher than anyone in the group can afford. Somebody pipes up and says, "That's ok. We can just split the check." Does that make sense?

The same thing can be said about retirement planning and a host of other things.

Share this

Of course, it only works if

Of course, it only works if one or more of the people in the group pay up but do not order food. The scheme is bankrupt if everyone wants the food at once...

...which characterizes both the SSA, health care insurance, fractional banking, etc.