Government-Subsidized Third-Party Payer Is a Great Recipe to Make a Sector of the Economy More Expensive and Less Efficient

May 25, 2015

Phineas Fahrquar:

It’s had the same pernicious effect on college education costs as it has in the health sector.

Originally posted on International Liberty:

What’s the most effective way of screwing up a sector of the economy? Since I’m a fiscal policy economist, I’m tempted to say that bad tax policy is the fastest way of causing damage. And France might be my top example.

But other forms of government intervention also can have a poisonous effect. Regulation, for instance, imposes an enormous burden on our economy.

Today, though, we’re going to look at how subsidies can result in costly distortions. More specifically, using examples from the health sector and higher-ed sectors, we’re going to see how “third-party payer” is a very expensive form of intervention.

We’ll start with the example from the healthcare sector. Writing for the Institute for Policy Innovation, Merrill Matthews has a must-read article about an unintended consequences of Obamacare.

He starts with a very sensible point about the effect of third-party payer.

Health care actuaries will tell…

View original 1,157 more words


Happy New Year from Public Secrets

January 1, 2015

It was a heckuva party last night, wasn’t it?

Happy New Year, folks. May 2015 bring you all you could desire. smiley dance


Merry Christmas, one and all

December 25, 2014

Santa and I wish you a very happy day.

(Normal service resumes tomorrow.)


Happy Thanksgiving!

November 27, 2014

No blogging today, folks. Enjoy the holiday. smiley eating gluttony


No posting from me today

October 13, 2014

Rat_Fink

We’re dealing with rats at work. No, not a delegation of visiting Democratic congressmen; real rats.

I hate rats.

And Democratic congressmen.

Rat Fink, however, is cool.


Blog Holiday: moving day

September 25, 2014
"Hit the road, Mrs. Robinson"

On the move

This will be the last post until Monday; Public Secrets GHQ (i.e., me) is moving to new digs on Saturday, and there’s still a buttload to do before the mover show up. and then unpacking afterwards! Wheeee!!!!

Anyway, this will be the last post until Monday. In the meantime, have a look at the fine sites listed in the sidebar on the right to get your reading fill.

In the words of the great Willie Nelson:


So, this turned into a weekend off…

August 10, 2014

hammock nap day off

Hadn’t intended it to; there’s certainly plenty to write about (1), but that’s… how it worked out. Enjoy what’s left of your weekend, folks, and be grateful you live in one of the few civilized places (2) left in the world.

Normal service resumes tomorrow.

PS: ST goes on hiatus. Like a good TV show, we hope she comes back, soon.

Footnotes:
(1) Have I mentioned those savages in ISIS need killing? I mean, really, really need it?
(2) No, I’m serious. A country willing to shoot down its own civilian airliner to have a pretext for war is not civilized.


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