Government and the Sub-prime and Financial Crisis

The left likes to blame economic freedom for the great recession and so they say we need more government control to avoid it happening again but Government is subject to the same problems that caused the sub-prime and financial crisis. Even getting some money from the federal Government and with the power to tax some local Governments are going bankrupt!


IMO the problem is that the current monetary system is not robust they disruptions.  It has serious feedback problems.  I think that we need to move to a competitive monetary systems were the incentives are to counteract a contraction.  

Medicaid and Marginal Tax Rates

Medicaid eligibility for a single parent with one child ends abruptly at about $18,000/year income.

Suppose having medicaid is worth $300/month to a person making $17,000/year.  $300/month is $3,600/year,  if the person earns $1,000/year more he is $2,600 worse off.

So why not offer all Americans health insurance with a deductible based on their last years income as outlined here.  That would eliminate the this big problem and perhaps push people to better control medical expenses.

One argument against such a system is that it would leave people with too little money in years with high medical expenses but Here is a story about a guy lives a middle class life on $7,000/year.

Governments Banking and a Famous Hayek Quote

Below is from a Tyler Cowen post:

5. Mind-numbing debates over banking, and a response from Krugman, and Nick Rowe.

It reminds me that our monetary and banking system is a great example of the famous Hayek quote:

“The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”

Back when Governments took over the monetary system even the experts did not understand much about it. Yet a government takeover in a democracy puts the monetary system under the control of the median voter. Yet the experts in the post do not completely agree.

In free banking even the bankers do not need to understand the system as a whole, with a Government controlled central bank the median voter needs to understand the Monetary system as a whole. How could that every work well?

Robin Hanson has a Post Suggesting Consulate Care

Robin Hanson has a post suggesting consulate medical care

Here’s another idea for medical reform: consulate care. Let countries like Sweden, France, etc. with approved national health care systems have bigger consulates, and open them up to paying customers for medical services. For example, you could sign up for Swedish Care, and when needed you’d go to their consulate to get medical care as if you were living in Sweden.

A more realistic step would be to get our states to respect medical Licenses from any developed country (and of course from any state) and allow free entry to practitioners (give all Dr and nurses green card automatically). Companies from France could then setup offices and even hospitals here. Providers might want to come and practice here as a sort of working vacation and see the USA.

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