This just about explains things

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Currently Reading

Working a few things:
The House of the Dead - Dostoyevsky.
Influence - Robert Cialdini
The Book of Samuel - Old Testament
Super Freakonomics - Levitt

Also reading a great deal in neuroeconomics and decision making, fascinating stuff and eager to learn more.

Ben Nelson Gets His Price

From the perspective of a representative “playing their position” and looking out for their own constituents, Ben Nelson has done a wonderful job.  As for the rest of the US, we’re asked to pick up the entire Medicaid bill for an entire state, for eternity.  How wonderful is that?

What this means is that Nebraska will not have an incentive to mind the store as closely as they would had they had to participate in paying for it. Put another way, this is like going away to college with your parents credit card.  Perhaps of all states Nebraska poses the smallest financial risk exposure to the American taxpayer, they are after all a hard working lot, still should this go through, Medicaid spending for Nebraska will certainly outpace that of the other states.

If you doubt this, consider what would happen if you put two piles of firewood on your front lawn, on one a sign that says “$50.00 a cord, and the other put a sign that reads “Free”.

Which one will go first?

Tom

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