Year: 2011

Most people flip out when economists suggest relaxing government regulation of medical quality. How dare we point out the trade-offs between price, quality, and access? But Robin notes an amazing example we’ve all known about since kindergarten: the school nurse.

Most states have special laws allowing school nurses to directly manage students as patients. True, school nurses can’t do everything docs can, but nurses who offered these same services to passersby at a shopping mall, without direct doc supervision, would violate medical licensing laws. Apparently, we like the comfort of knowing that medical help is onsite at school, but know that an onsite doctor would be very expensive, and so compromise with school nurses.

Pedagogical gold this pure goes straight into my labor econ lectures. Textbook authors and principles teachers, take note.

[From School Nurses and Econ 101, by Bryan Caplan]

Don Boudreaux:

Suppose that in a mere three years your family’s spending – spending, mind you, not income – jumped from $80,000 to $101,600. You’re now understandably worried about the debt you’re piling up as a result of this 27 percent hike in spending.

So mom and dad, with much drama and angst and finger-pointing about each other’s irresponsibility and insensitivity, stage marathon sessions of dinner-table talks to solve the problem. They finally agree to reduce the family’s annual spending from $101,600 to $100,584.

For this 1 percent cut in their spending, mom and dad congratulate each other. And to emphasize that this spending cut shows that they are responsible stewards of the family’s assets, they approvingly quote Sen. Harry Reid, who was party to similar negotiations that concluded last night on Capitol Hill – negotiations in which Congress agreed to cut 1 percent from a budget that rose 27 percent in just three years. Said Sen. Reid: “Both sides have had to make tough choices. But tough choices is what this job’s all about.”

What a joke.

[From What a Joke]