I have heard the term 'Moral Hazard' bandied about reading and listenting to various pieces, mostly commonly in reference to the financial bailouts. Why would an organization try to become efficient, if it knows it will receive a bailout if it doesn't? Simple, it won't.
Why would someone pay for health insurance if they know they can go to an ER and get service free of charge or get government (read: someone else) to pay for it? Ah, govenrment intervention and those pesky unintended consequences.
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