Should We Pay to Visit the Doctor?

Should the NHS be free or should we pay to visit the doctor? An emotional issue, but what are the economic arguments?

Benefits of Charging for the NHS

• If it is free there may be overconsumption. IN the diagram there is overconsumption when it is free
• It will reduce time wasters
• It will raise revenue for the government which can be spent on the NHS

 

 

Disadvantages of Charging for the NHS

• Health is a merit good, people underestimate the benefits of going to the doctor for screening, charging would put some people off
• Health has positive externalities therefore will be underprovided in a free market. Draw diagram
• Demand for health care is inelastic, therefore charging may not reduce waiting lists
• Administration costs of collecting money
• Would lead to inequality

 

Essays and Revision Notes on Government Failure

• Government Failure
• Privatisation of Public Services
• Should We Pay for NHS?
• Rationing and the NHS
• Why Government Intervention ?
• Market Failure
• Buffer Stocks