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There is a critical distinction between market friendly and business friendly deregulation but this is almost never made, with sometimes terrible consequences. Perhaps the best example of the latter is the US healthcare system, where insiders rule and investors rejoice, but at the expense of patients and the rest of the economy.Investors often benefit from […]

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The US healthcare system is rife with inefficiencies; as a consequence, it’s much more expensive compared to other advanced nations. This would be tolerable if it produced better health outcomes as these other nations, but it doesn’t. These high healthcare costs put America at a competitive disadvantage. The proposed healthcare law does nothing to address […]

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Healthcare is the single biggest sector of the economy, and it’s also the main job creator. The US has a particularly expensive healthcare system, which negatively affects the economy in myriad ways. Because of its importance, and the complexity of the system, changes must be very well thought out in advance. Repeal And Replace Cannot […]

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After all the fiery rhetoric, can this be a surprise..

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For markets to function, both buyers and sellers need access to the same information. When this is not the case (a situation known as ‘asymmetrical information’ in economics), things can go badly wrong….

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Free markets do not work in certain markets, especially those where parties to the transaction have different information (‘asymmetric information’, as it’s called in economics). Health insurance markets are a good example of those, and nobody explains that better than Paul Krugman..

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