The Economist's Question: As Compared to What?
22 December 2006
Editor, The Washington Post
1150 15th St., NW
Washington, DC 20071
Dear Editor:
In "Bloomberg's Brave Bet on Innovation" (Dec. 22), E.J. Dionne alleges that "government succeeds more than we want to acknowledge. Ask any elderly person if he or she would prefer to live without Social Security and Medicare."
Mr. Dionne's standard for success is too lax. The appropriate question is "compared to what?" Are elderly persons better off than they would be if their pensions and medical care were not provided by government? Maybe; maybe not. But it's difficult to tell because Americans are forced to participate in Social Security and Medicare. Private alternatives are crowded out.
Just because someone is reluctant to release the scrawny crow he holds in his hand does not mean that he would not prefer the flock of plump pheasants that might fly his way if government did not force us all to settle for crow.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Editor, The Washington Post
1150 15th St., NW
Washington, DC 20071
Dear Editor:
In "Bloomberg's Brave Bet on Innovation" (Dec. 22), E.J. Dionne alleges that "government succeeds more than we want to acknowledge. Ask any elderly person if he or she would prefer to live without Social Security and Medicare."
Mr. Dionne's standard for success is too lax. The appropriate question is "compared to what?" Are elderly persons better off than they would be if their pensions and medical care were not provided by government? Maybe; maybe not. But it's difficult to tell because Americans are forced to participate in Social Security and Medicare. Private alternatives are crowded out.
Just because someone is reluctant to release the scrawny crow he holds in his hand does not mean that he would not prefer the flock of plump pheasants that might fly his way if government did not force us all to settle for crow.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Tuesday September 4, 2007 at 5:50am