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Economic View: The Pitfalls of the Public Option

Date: June 27, 2009
Author: Prof. N. Gregory Mankiw
QUOTE: IN the debate over health care reform, one issue looms large: whether to have a public option. Should all Americans have the opportunity to sign up for government-run health insurance?....Even if one accepts the president’s broader goals of wider access to health care and cost containment, his economic logic regarding the public option is hard to follow. Consumer choice and honest competition are indeed the foundation of a successful market system, but they are usually achieved without a public provider.

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