I’ve been tied up with an excellent leadership summit that was held this past Thursday and Friday, so I’ve been away from the computer for a bit, which is why there was no blog post on Friday, and why today’s will be short and sweet as well. Things should be back to normal on Tuesday.
Today, I wanted to raise the issue of whether or not health care is truly the same as any other good or service. That is, does the marketplace for health care operate according to the same economic principles as the marketplace for hiring a lawn service or the marketplace for buying a pair of tennis shoes? Are the laws of supply and demand the same across the board? Are the prerequisites for a well-functioning market universally present? Or is health care different? I have my own views, but I don’t want to taint your own before you have a chance to think about it. Think about yourself as an economic actor. What goes through your mind when deciding to purchase a new car? A bookcase? A hamburger? A health insurance policy? Really think about it. Then see if you notice any similarities and/or differences. What are they? Post a comment and share them with the rest of the class.
Then, after you’ve done that, read this quick post on the topic by Uwe Reinhardt, who focuses not on the economics behind individual actions (positive economics), but on the economics from a societal perspective (normative economics). How do the things you were thinking about as an individual intersect the points Reinhardt raises? This is something we must wrestle with before we will make much progress in the arena of health reform.