In one of the lectures of Econ101 at Yale Robert Schiller brings up a very interesting thought experiment: imagine everyone about to be born having a pre-birth

In one of the lectures of Econ101 at Yale Robert Schiller brings up a very interesting thought experiment: imagine everyone about to be born having a pre-birth meeting. What sort of system would they agree upon if they had to decide without knowing what their lot in life would be? I am norwegian and I feel like this kind of reasoning about 'fairness' has shaped a lot of our public policy. Everyone should be able to be find happiness in life, even if they are unfortunate with their rolls during character creation. Another issue, which I personally find very important, is that of moral hazard. There are greedy and/or ambitious people out there willing to step over bodies to improve their own situation This is one of the reasons I feel a state run health care system is so important. We are in a sense erring on the side of caution with most of our government policies, and the price we pay is some waste. There are people who exploit the welfare state for their own gain. I will, however, happily pay for some waste if we never get in a situation where someone needing help is denied because someone else is out to make a buck. What the article talks about, in my eyes, is mostly the nordic countries trying to eliminate waste--moving toward a smaller government while still keeping the quintessential intact. Another thing worth mentioning, which is also able to explain part of the government downsizing, is that we--as everyone else--are facing serious challenges because the baby boomers are about to retire, and in general the ratio of retired to working people is expected to shift quite a bit over the next 50 years. The promises goverment can--and should--make necessarily has to change when its expenses are expected to go up while revenues stay the same.