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Regulation isn’t the reason those sectors aren’t free markets. On the contrary, regulation exists because they can’t be free markets. Both lead to market failur
by chongli 7y ago
Regulation isn’t the reason those sectors aren’t free markets. On the contrary, regulation exists because they can’t be free markets. Both lead to market failures due to information disparities, principal-agent problems, massive externalities, and a lack of free choice (in the case of health care).
- zozbot234 7y agoThe issue is the amount of regulation, of course. Regulatory capture can have worse effects than most market failures, and healthcare is one of the most obviously "captured" sectors.
- dantheman 7y agoMost health care is not emergency care so there is a lot of choice. Same with education. They could easily be freed from massive amounts of regulation.
- Ididntdothis 7y agoI would prefer more regulation to make sure prices are transparent. The current system is set up to make prices as opaque as possible. The employer has a lot of information, the provider has information, the insurance has information, but the patient is being kept in the dark. That is, until the big bill comes in the mail.
- dantheman 7y agoCompletely agree. Prices are required. What hospitals are doing now basically amounts to fraud. In no other 'market', since it's not a market, do customers have no idea if what the price of goods and services are.