Chart of the day
February 26, 2011 Leave a comment
I used to lecture about “job lock” as a regular part of my health care policy lecture. I largely stopped, not because it’s not important, but because there’s so much wrong with our current system and I only use three days to cover it. It’s not an unimportant issue, though. Basically, a lot of Americans are essentially trapped in their jobs for fear of losing health insurance in our employer-based system. This, of course, leads to a fairly inefficient distribution of workers and stifles opportunities for entrepreneurship. Austin Carroll demonstrates this nicely in chart form:
That’s almost a 14% increase in business ownership attributed to turning 65 and going on Medicare. It would seem that there are substantial gains to be had in moving away from the employer-based health insurance system. Is there really any good argument for retaining it?
Other than the fact that there’s always a fair amount of trouble in disrupting a major status quo such as this, I sure cannot think of one. Of course, if the only reason to keep a bad idea is that it’s a pain to get rid of it, we could still have slavery.