Quote:
Originally Posted by Tyrone Slothrop
People like insurance because they are risk-averse. Private insurance is about spreading risk, and you can opt out. Ex ante, there isn't redistribution involved, because the bargain is offered to the market in a neutral way. People fear government insurance programs because they justifiably worry that the government will set terms that benefit some more than others, and that they won't have the ability to opt out.
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Which is both understandable and sort of silly. Exactly none of us can tell whether we're being ripped off by our insurance company. Even if you tried to read all the relevant disclosure, it's close to impossible to evaluate with a normal person's expertise.
So we rely on government regulators, whose work we also don't understand.
At least with public systems, you can vote the bums out.
