Markets and Health Care

October 22nd, 2013

Ezra Klein argues that consumers restrain costs for consumer goods by being able to “say no”—that is, they can refuse to purchase, say, a television from Sony if they charge too much. Klein continues that because for health care consumers cannot “say no,” market forces cannot restrain health costs. But government can, Klein says, and that’s ACA’s intent.

Reihan Salam responds:

But surely the cost of televisions (and most other things, including many necessities) is kept relatively low not because people can do without them but because people have a huge range of options in a very competitive market. Sony can’t charge you too much because you’ll just buy a television made by someone else. Health insurance (let alone care) can’t always be treated like that kind of commodity in every respect, of course, but I think (as conservatives tend to) that they can be to a far greater extent than most people on the left seem to believe.