Monday, July 25, 2005

competition creates kindness

In today's New York Times, Paul Krugman notes how Toyota rejected low-tax Alabama for high-tax Ontario. This illustrates how competition between different governments rewards good behavior.

I believe in competition between nations. (The present system reduces that competition, because bad governments are protected by fixed borders.) One argument against competition is that the meanest, most ruthless nation wins, which benefits multinational corporations but hurts the poor. But the Toyota example shows otherwise. Providing better education and health care gives a nation a competitive advantage.

3 Comments:

Blogger Miranda said...

Here's another good article about the benefits of single payer health insurance. I just finished writing an article about universal health coverage and the article about the Toyota plant spurred me to write the essay.

6:28 PM  
Blogger Chris Tolworthy said...

Thanks! Regarding the best form of health service/insurance, I think that many free-market people forget that government is a form of business too. Sometimes small suppliers are best. Sometimes big suppliers (such as government) are best. We need real choices.

8:36 AM  
Blogger Miranda said...

Here's another good article about how big suppliers do it better. In this case, the Veteran's Administration hospitals, think NIH on smaller scale for military vets, actually outperform their private peers for less money. I was surprised to see it in the very pro-conservative, pro-business US News and World Report, but our current system is unsustainable.

(I read your site via newsreader and I saw your post about choosing your own gov't. My first thought was to send it to you, then I realized it was from your blog. Time for more coffee.)

6:03 PM  

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