Envisioning a Free Market in Health Care

Medical prices have been rising at rates greater than inflation and medical expenditures have been rising faster than wages. Health economists blame these problems over-use of third-party payments and government interference in the medical market. An article by D. Eric Schansberg in Cato Journal catalogs the results:

Comments (4)

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  1. Tom H. says:

    Revealing graph.

  2. Larry C. says:

    We buy more if somebody else pays. Isn’t that Eco 101?

  3. Devon Herrick says:

    I always try to convey this information when I present to groups. As third-party payment became more common, national health expenditures began to increase at a steeper rate. It should be self-evident to an economist that the two phenomenon are related.

  4. Neil H. says:

    We are spending each others money blindly into bankruptcy.