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I'd argue it's the other way all of the things you listed, healthcare, education, and housing are hugely subsidized by the governemnt. Healthcare through medica
by kneebonian 4y ago
I'd argue it's the other way all of the things you listed, healthcare, education, and housing are hugely subsidized by the governemnt. Healthcare through medica(r|d)e, education through pell grants and loans, and homes through the tax breaks associated. These things all together result in the massive increase in cost of these things, because the government is redistributing wealth from others to those industries.
- ajmurmann 4y agoIt's an interesting dynamic. Because of rising cost, consumption of the services gets subsidized in ways that distort the market. In addition lots of regulations and controls are put in place which further drive up cost. Interesting paper on this: https://www.niskanencenter.org/cost-disease-socialism-how-subsidizing-costs-while-restricting-supply-drives-americas-fiscal-imbalance/ https://www.niskanencenter.org/cost-disease-socialism-how-su...
- jimbokun 4y agoI agree with you 100%, and its seems very difficult to explain this to people in terms of politics. The intuition is that grants and loans make education more affordable, but in the medium to long term they just inflate the cost of tuition for everyone. Similarly for healthcare and housing. Feel like we either need to socialize these sectors of the economy, or go full free market. But a system half way in between doesn't work. (My personal preference would be to largely socialize healthcare and education, while pushing for more free market reforms for housing, to encourage new development and increase the housing supply.)