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Tuesday, January 23, 2007  Paul Krugman: Additional Notes on
Gold-Plated Indifference  Paul Krugman emails more background on
his column today. This appears in his Money Talks column and
explains some of the economics behind his opposition to the Bush
proposal:  Additional Notes on 1/22 Column, "Gold-Plated
Indifference": As is often the case, I couldn't fully explain my
views in the space available. So I'd like to explain at a bit
more length why I'm so opposed to the direction Bush is going.
Basically, everyone agrees that health care is a messed-up
sector. But there are two opposing doctrines about what the
problem is.  I believe - and the evidence, I think, supports
this belief - that the big problem is "adverse selection." An
insurance plan offered to everyone at the same rate would be a
great deal for relatively sick people, a poor deal for the
healthy. So one of two things happe