Economics of natural disasters: Moral hazard, government intervention and insurance

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Often the government, in the name of helping everybody, makes some problem worse. This is true in the case of natural disasters. Government intervention in the market for insurance causes moral hazard, and therefore incentivize people to inhabit risk prone areas and putting them in danger. The best thing the government can do is to let the market alone.

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8 Comments

  1. Appreciate video content! Forgive me for the intrusion, I would love your initial thoughts. Have you thought about – Mahorrla Surviving Help Method (probably on Google)? It is a good one of a kind product for protecting your family during a national crisis minus the normal expense. Ive heard some super things about it and my m8 at last got excellent success with it.

  2. This is such bullshit. It's propaganda for Privatization … which REALLY doesn't work because as it's been shown all over the world, Privatization is a parasite that eats its host from the inside out…. much like the GREEDY, filthy super rich. Nice try spinners.

  3. these are problems humanity face, just because some problems are not yet solved doesn't mean that current solution, which in this case are governments, are bad and should be destroyed…
    Most people live in places without government supremacy suffers. The only people who would be advantaged without the governments are rich people who would become like warlords that fight each other.
    Humans are sources of solutions to each other, even just by staying alive.

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