Saturday, December 1, 2018

22 Days in Paul Krugman's Masterclass (Day 13) (Misleading Healthcare Economics )

Paul Krugman
Lesson 13 in Paul Krugman's Masterclass is 15 minutes and 58 seconds long.

In this lesson Krugman discuses healthcare. He does it in such a vacant and misleading manner that I think that if you asked the know-nothing socialist Alexandria Ocasio-Cortez to discuss healthcare, you might get a better explanation than what Krugman spouts out here.

He begins with a distorted commentary about the healthcare system by claiming that health insurance won't work if the young and healthy are not part of a health insurance system.

But this is just a dishonest distortion of what insurance is all about. People who don't need insurance don't sign up for it.

Renters don't sign up for homeowners insurance and public transportation subway riders don't sign up for car insurance. The young outside of very low-cost catastrophic health insurance really don't need any other kind.

Krugman is distorting things when he is claiming that the young need to be part of a health insurance system. That would not be insurance but rather government coercion forcing the young to subsidize the healthcare of the elderly.

The Nobel Prize laureate should understand this and thus he must be deliberately distorting the situation to promote his socialist healthcare agenda.

With this start, he makes the absurd claim that "private sector health insurance doesn't work."

And continues, "We have to have government policies."

The outrageous claims that Krugman makes about health insurance are the type made by a central planner who has never quite understood the point made by F.A. Hayek that the world is too complex to leave to central planners, and what can be more complex than healthcare?

Krugman attempts in this lesson to discuss problems in the system but fails to acknowledge that the problems are because of government interventions currently impacting the system.

In short, this lesson by Krugman is dishonest and dangerous.

You would really need to be an early caveman (or a useful idiot socialist) not to understand how the free market couldn't solve the problems Krugman raises in this lesson.


Links to discussions of all Krugman's Masterclass lessons are here.


  1. It never ceases to amaze me that people touted Obamacare because, they said, the "private market doesn't work with healthcare" -- ignoring the fact that before Obamacare, 50% of healthcare costs were already being spent by the government.

  2. Krugman if he knows will not expose the fact the present medical system in the USA is the result of government first getting involved so doctors and the medical industry as a whole would make more money. Interventions since of course finding more wealth to pay the prices government served to increase. Had these actions not been taken and free market medical care remained on course over the last century medical care would largely be so cheap that the sort of insurance that we must have today would be a luxury like an extended car warranty. Cheap catastrophic insurance would be the most people would need.