It is interesting that Obama relies so much on incentives arguments in his discussions of doctors and insurance companies. Doctors letting people's feet go rotten because the fee for service model gives them an incentive to do so etc. It seems that at some point this would lead to someone asking why, if he thinks incentives are so efficacious, he doesn't let them operate for the consumer? letting people buy their own healthcare and make their own decisions would seem to be the natural policy prescriptions for someone that thinks incentives are so powerful. Of course Obama doesn't think incentives are that important. they are merely a convenient weapon to use against the private sector.
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