• Safety nets strengthen our initiative

    From the President’s inaugural speech yesterday:

    We recognize that no matter how responsibly we live our lives, any one of us, at any time, may face a job loss, or a sudden illness, or a home swept away in a terrible storm. The commitments we make to each other through Medicare, and Medicaid, and Social Security these things do not sap our initiative; they strengthen us. They do not make us a nation of takers; they free us to take the risks that make this country great.

    I tried to say this before, but he did a much better job.


    • Just like life insurance. And homeowners insurance. And casualty insurance on automobiles.

      Amazing how insurance works. But there is nothing romantic about it. And there is no reason to collectivize it.

    • That may all be true but people are far from perfect so we need to be very careful to not create moral hazard.

      Should we pay for a rich person’s home swept away in a terrible storm that built close to the ocean? Or does the moral hazard out weigh the need for compassion? Does our charity encouraging more people to build where they should not?