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I think the point being made is that when the government bears the cost of the externality it is more incentivized to address root causes, as it is a direct dri
by kikoreis 7y ago
I think the point being made is that when the government bears the cost of the externality it is more incentivized to address root causes, as it is a direct driver of savings. I am always looking for this sort of alignment of incentives when structuring a project, and it takes some effort but when you can find it it's dynamite.
- true_religion 7y agoWith prisons the government bears the cost, and would benefit if fewer people were in prison. In practice, it has lead to for profit prisons and judicial corruption.
- quadrifoliate 7y agoThis is due to revolving door lobbying inherent in the political system, which is why states have started banning contracts with private prisons.
- quadrifoliate 7y ago> I think the point being made is that when the government bears the cost of the externality it is more incentivized to address root causes, as it is a direct driver of savings. Thank you, this is indeed the point that was intended. It's not a direct case of the food manufacturer saying "Hey we have socialized healthcare, let's make healthier chips", it's the government thinking "Damn, we have a lot of obese people, let's have incentives or rules that make manufacturers produce healthier foods".
- njarboe 7y agoThat is a pretty optimistic view of US government agencies that I don't share. Most fight tooth and nail to increase their budgets so I think don't heathcare being socialized (and becoming the largest agency in the government) would likely increase the government interest in a healthy population.