The Tyranny of Risk Pooling
Here is a common political debate: The first person asks why the government forces him to wear his seatbelt when he drives; it should be his own business whether or not he wants to risk his life. To which a more thoughtful liberal will respond that it is not just his business - everyone else’s insurance rates will go up because of the extra health care costs.
That response misses the root cause. The only reason why the insurance rates for others have to go up is because our government forces people into the same risk pool. This happens in two ways. Programs like Medicaid put everyone into one risk pool that is paid for by taxpayers as a whole. Secondly, insurances regulations limit how much insurance companies charge different types of people. This reaches its zenith with the practice of community pricing, in which everyone is charged exactly the same rate.
In theory people should be able to buy insurance that will cover them even if they drive without their seatbelt (or ride their motorcycle without a helmet). Of course, their rates would have to go up! But once the insurance company charges a rate that is in line with the degree of danger, the objection from risk pooling disappears.
Liberals however are completely opposed to this. Indeed, the progressive state demands that all of society be placed into one giant risk pool. Once this happens they will be free to control every aspect of everyone’s behavior, one little bit at a time. Actually there is one important exception. While liberals don’t think you should have to pay for someone to drive without a seatbelt, they do think that you should pay for someone’s sexually promiscuous behavior.
Risk pooling falls more within the liberal goal of moving as much of our lives into the public realm as possible. Once that happens it is open season on how government controls our public lives.

RSS feed


