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The fix for both is the same. Get the government out of the demand side and, if anything, only work on the supply side. Want lower doctor and hospital prices?
by koolba 6y ago
The fix for both is the same. Get the government out of the demand side and, if anything, only work on the supply side.
Want lower doctor and hospital prices? Try competing against a “free but you have to wait” government option. Budget $X million dollars per year to put some primary care doctors on retainer.
Want lower private school tuition? Try competing against a free (or at least low cost) government / public option.
If you boost the demand side then the market will suck up any money thrown at it. Loans and subsidies going are the worst approach as they encourage price increases.
This works with housing too! Stop subsidizing rents (increasing demand) and build more houses (increase supply).
- Ericson2314 6y agoI would not make "Get the government out of the demand side" a rallying cry because UBI is the huge counter-example of something governments should be doing. Better to say governments should do, not fund, on the institutional level (run the school, run the hospital, like you say), and fund, not do, in the individual level (UBI not SNAP).
- shkkmo 6y agoUBI doesn't manipulate the demand for specific markets, it is more of a monetary policy that has only an indirect impact on demand.
- Ericson2314 6y ago> UBI doesn't manipulate the demand for specific markets Totally agreed, this a good thing. > It is more of a monetary policy Sure > that has only an indirect impact on demand. Many disagree. Obviously the most basic goods aren't going to be consumed that much more (e.g. we might consume better food but not dramatically more calories). That said, it's a not-fringe view that demand as been statement for ages, due to things like wages not keeping up with productivity growth. UBI is, among other things a way to fix that.