Anything the government subsidizes (healthcare, mortgages, education) has exploded in cost because it’s built on a foundation of moral hazard. In essence the policies, which try and mix central economic planning with free markets, are lining the pockets of banks (guaranteeing mortgages), university endowments and admins (giving anyone with a pulse tons of money to learn), and healthcare providers (Medicare and Medicaid demand saturating resources by paying under market for the highest risk people).
I’m not saying socialized or free market approaches are better than one another. But the approach we have taken is the worst of both.
You can’t just insure the sickest demographics - you need a distribution. Either make it universal or let the free market compete for it.
You can’t just give anyone a ton of cash to learn what they want. Either make it free for all or let the free market lend to students based on expected return.
You can’t just guarantee every mortgage which keeps interest rates artificially low. Either build social housing or let the free market set interest rates.
Re:I wish GPT4 had never happened
by satvikpendem on Saturday April 08, 2023 @01:20PM
(#35495484)
I agree wholeheartedly. The mixture might work in other regulated domains like finance, but for the above, it only hinders true growth and development for the tax payer.
Housing: NIMBYism and lack of ability to build, mainly by strict government zoning and people who petition their local governments to not build more lest it devalue their house.
Healthcare: insurance companies trying to get away with as much as they can, while hospitals try to charge as much as they can, effectively creating a price bidding war with the consumer in the middle.
Childcare: More people working, lower supply of childcare services but demand goes up, thus price goes up.
Education: Government effectively making student debt undischargeable in a bid to get more people to get college degrees but this backfired. Administrator costs for colleges ballooning.
So, even if wages had kept up with productivity, if you don't solve the underlying reasons as to why these costs exploded, you'll have the same issues as before.