Commentary
Last fall, the possibility of an acute energy shortage was the major issue concerning the people of the United Kingdom. Well, I have good news and bad news: The good news is that the combination of a warmer-than-expected winter and rapid adjustments in energy markets averted that nightmare scenario. The bad news is that another kind of shortage has hit the UK hard and is of major concern there: a shortage of health care.
The UK has had a government-run health care system since 1946. Called the National Health Service (NHS), it provides health care services for free. Well, not exactly for free—the NHS is financed via taxation. But it’s “free” in the sense that there are no out-of-pocket expenses. That makes what we economists call “the marginal cost” essentially zero….