Academic

VERONIQUE DE RUGY: The High Cost of No Price: A simple chart will help you understand why healthca?

By Glenn Reynolds

VERONIQUE DE RUGY: The High Cost of No Price: A simple chart will help you understand why healthcare spending has gone out of control. “Economists have shown that if a good?s price is zero or decreasing, then the demand for this good will likely increase. In 2008, consumers were only directly responsible for 11.9 percent of total national healthcare expenditures, down from 43 percent in 1965, according to new data from the U.S. Department of Health and Human Services. This means that someone other than consumers pays roughly 88 percent of all healthcare costs, giving consumers little incentive to mind costs and much incentive to over-consume.”

Full post as published by Instapundit.com on January 14, 2010 (boomark / email).