Beware Unintended Consequences

What’s the problem with subsidies and tax penalties? For one thing, they are incentives, and individuals naturally respond to incentives. Unfortunately, policymakers do not seem to grasp the unintended (or at least, hidden) incentives built into their laws—incentives that could prove counteractive to their very goals. What’s the problem with subsidies and tax penalties? For […]

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Affordable Care Act: Beyond Our Price Range?

Will the Affordable Care Act (Obamacare) make health care affordable? Chances are it will do the reverse. Will the Affordable Care Act (Obamacare) make health care affordable? Chances are it will do the reverse. In a recent Bloomberg piece, writer David Goldhill explains the faulty thinking and reverse incentives built in to the new health […]

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