Health – A Market Like No Other

As part of my economics degree and my wide reading of economics books, I have had the idea of the market drilled into my head. The market is continually praised and idealised as the best way to organise resources in society. When then is health the major exception? Why do we not pay for medical treatment the same way we pay for a house or hire a doctor like we hire a plumber? Why is health treated in such a completely way, and why is this differential so widely accepted? Continue reading “Health – A Market Like No Other”

Wrong Kind Of Incentives

Pick any economics textbook and they will tell you about how people are motivated by incentives. These are what guide the economy and ensure it functions. As Adam Smith famously said, we get food from butchers and bakers not through charity but because they have an incentive to sell and make a profit. But what happens when incentives lead people in a negative direction? What if people have an incentive not to help others but make a profit from them? One common problem known to health economists is known as supplier induced demand and occurs when doctors put making money ahead of helping their patients. Continue reading “Wrong Kind Of Incentives”