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Jane Galt as dictator
If I were in charge of the budget, we would massively reform entitlements, transforming Social Security into a system of forced savings combined with a means-tested fallback for those too poor to save, or whose investments tanked at the wrong time. We would kill the whole Medicare/Medicaid debacle, along with the tax deduction for corporate-provided health care benefits, replacing it all with catastrophic federal insurance for those whose medical bills exceed 15-20% of gross income (phasing out for those whose incomes put them in, say, the top .1% of earners) and another means-tested benefit for those who genuinely cannot afford to spend 15% of gross income on health care benefits. I would combine this with the Jane Galt Tax Plan to save the government a whole mess o' money, while making the economy more efficient, and increasing the incentives for everyone, rich and poor alike, to create value for society. Forget Win-Win . . . that's like Winwin!
Here is the link; there is much more. Elsewhere in the blogosphere, it is also worth reading Dan Drezner on Asian exports.
Posted by Tyler Cowen on February 10, 2006 at 03:06 PM in Political Science | Permalink
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Comments
Thank the gods she's not the dictator.
- Josh
Posted by: Wild Pegasus at Feb 10, 2006 5:26:54 PM
A federal insurance "for catastrophic expenses only" is the right thing to do. Drop the regular costs and visits from the budget.
Let me just say that in some EU countries you do not pay for a regular visit with the doctor (cold, flu, etc.). The doctor gets payed per capita per month (not per visit) from the budget for having ca. 2000 patients, who can come as often as they want to and never pay.
The supply/demand gets regulated by few admissions (e.g. 20 per day), long queues, tokens which get distributed at 7:30, etc.
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