Mark Perry presents this amazing graph showing the difference in price changes for the past 20 years of “regular” health care costs versus plastic surgery costs. I can think of very few graphs I have seen which so vividly illustrate why low deductible, all-inclusive health care insurance (which is what most people who have health insurance have) is such a very very bad idea. Single payer health care (Obamacare) is even worse. Divorcing the payer of and the recipient of services makes this kind of hyperinflation of costs inevitable.

As Milton Friedman said, we are most frugal when we spend our own money on ourselves and we are the least frugal when we spend other people’s money on ourselves.

-JD Cross

 

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