What do you do with the people who can’t pay?

Monday, October 12th, 2009

Aretae tries to answer the eternal question, What do you do with the people who can’t pay? A commenter named Melanie points out that pro-business libertarians give the impression that their answer to people who can’t afford food or medicine is tough shit, but I suggest another “libertarian” perspective entirely:

In most cases where charity feels right — educating the children of the poor, providing medical care for those who can’t afford it, etc. — we ignore the market’s well-established alternative to outright gifts or grants: financing.

We don’t have to tax the rich and give the money — minus substantial administrative costs — to the poor in order to help them. If $1,000 of medical care staves off blindness or amputation, it’s obviously worth far more than $1,000 in future earning power, and a loan will do — if a creditor feels he’ll get his money back.

If anything, the role of government should be to enforce such agreements — via garnishing wages, etc. — so that they can and will be made.

And there’s always private charity — until public programs completely crowd it out.

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