In response to:

Our Nation's Future

gofjohn Wrote: Jun 01, 2012 10:53 AM
The commons problem also explains why health care costs have and are escalating. Becaujse health care is paid by third parties (government and employers/insurance companies) we patients think is is free and want as much as we can get. Providers are glad to oblige and come up with ever more costly ways to provide what patients want. Third parties, (particularly government politicians), have no real way to resist.
Captain53 Wrote: Aug 19, 2012 9:04 AM
False, providers or not "cleverly raising prices." On the contrary, they're playing a game with the government, which randomly decides which services to reimburse and which they will not. If hospitals did not raise the prices for their services, programs such as medicare and medicaide would bankrupt many of the hospitals, whose core patient base uses such programs. Insurance companies, for the most part don't attribute to this "tragedy of the commons," because they pay the costs and decide which hospitals they'll allow their insurance to be used, while hospitals who realize certain insurance agencies don't offer the correct rembursement won't take that insurance.

Our nation is rapidly approaching a point from which there's little chance to avoid a financial collapse. The heart of our problem can be seen as a tragedy of the commons. That's a set of circumstances when something is commonly owned and individuals acting rationally in their own self-interest produce a set of results that's inimical to everyone's long-term interest. Let's look at an example of the tragedy of the commons phenomenon and then apply it to our national problem.

Imagine there are 100 cattlemen all having an equal right to graze their herds on 1,000 acres of commonly...