Free-riding

Free-Riding occurs when an individual or other entity takes advantage of benefits for which they do not pay for. A common example is patients without insurance, or other means to pay for treatment, receiving care at public hospitals. This is frequently used by governments, or economists who support them^[1], to advocate intervention to prevent free-riding. This argument has been used by Mitt Romney to defend his decision as Governor of the state of Massachusetts to require every individual to carry a basic health insurance policy^[2]. However, it should be noted that free-riding occurs precisely because of previous government interventions. If hospitals weren’t socialized, that is operated or heavily regulated by governments, then people who received care would be responsible to pay for it, either through insurance, or out-of-pocket. For those unable to pay, the hospital could voluntarily cover the costs, and thus, free-riding would no longer be a problem.

References

↑ .Reference[1] Paul Krugman, New York Times. 12-30-2007, Accessed 09-23-2011.
↑ .Reference[2] Mitt Romney defends Massachusetts health care law in Las Vegas speech – Politico.com. Accessed 09-23-2011

Links

Welfare Before The Welfare State - Joshua Fulton.

This article is a stub. You can help Mises Wiki by expanding it.

[1] .Reference[1] Paul Krugman, New York Times. 12-30-2007, Accessed 09-23-2011.

[2] .Reference[2] Mitt Romney defends Massachusetts health care law in Las Vegas speech – Politico.com. Accessed 09-23-2011

[1]

[2]