Tuesday, August 11, 2009

Rationing

Rationing By Any Other Name

"We already ration food; we just let the market do the rationing."
"We already ration gasoline; we just let the market do the rationing."
"We already ration cigarettes; we just let the market do the rationing."



Megan McArdle blows me away with her essay on rationing by fiat v. rationing by price, a concept, evidently, as elusive to statists as free markets and national defense. "
But there is also a real difference between having something rationed by a process and having it rationed by a person.  That is, in fact, why progressives are so fond of rules.  They don't want to tell grandma to take morphine instead of getting a pacemaker.  It's  much nicer if you create a mathematical formula that makes some doctor tell grandma to take morphine instead of getting a pacemaker.  Then the doctor can disclaim responsibility too, because after all, no one really has any agency here--we're all just in the grips of an impersonal force.

But this won't do.  If you design a formula to deny granny a pacemaker, knowing that this is the intent of the formula, then you've killed granny just as surely as if you'd ordered the doctor to do it directly. That's the intuition behind the conservative resistance to switching from price rationing to fiat rationing.  Using the government's coercive power to decide the price of something, or who ought to get it, is qualitatively different from the same outcome arising out of voluntary actions in the marketplace.  Even if you don't share the value judgement, it's not irrational, except in the sense that all human decisions have an element of intuition and emotion baked into them.
The whole thing.  (H/T Chicago Boyz)

2 comments:

Chuck Martel said...

You know something that's gonna' be difficult w/ Obamacare? Suing someone for medical malpractice. If your child is injured because the doc says he had to use the Vacuum Assisted Delivery System to bring your child into the world -- you and your child are equally screwed.

"The FDA and Obamacare Guidelines said I had to do it that way. I'm really sorry your child has brain damage. Write your congressman."

Rodger the Real King of France said...

Obamancare can't be sued ...

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