Liberal Economist: "Freedom of Movement Stymies Collectivism"

Did I mention that Greg Mankiw's blog is wonderful? Anywho, in this post Prof. Mankiw quotes this astonishing statement by Cornell economist Robert Frank regarding healthcare reform at the state level:

"Yet, despite this advantage, a health system operated at the local level could never work. Because people are free to move, such a plan would attract uninsured people with chronic conditions from surrounding cities, substantially raising the program's cost. In turn, the need to raise income tax rates would induce many of the community's more affluent taxpayers to flee to neighboring cities. The resulting death spiral would quickly doom the program."

Got that? We have to work around this whole freedom of movement thing. Add this to Nick Kristoff's Soda Tax and you get the sense that these people think we are children who need to be corralled told how to behave. (OK, I got that sense ages ago.)

On a separate point, do you see how Frank states that increased government benefits attract people who want to free ride on the government and how higher taxes repel tax-paying people? I remember the debate over welfare reform and the left refused to admit that lush welfare benefits attracted free-riders. And the left generally refuses to admit that higher taxes on business drives business out certain jurisdictions. It is good to see a leftist economist admit that incentives matter.