Compare the Maxwell and Pauly articles on Moral Hazard Essay

Compare the Maxwell and Pauly articles on Moral Hazard - Essay casePeople obtain wellness insurance to protect themselves from future financial risks. This is the point of Pauly when issue concerning what motivates Americans to buy insurance is taken into affection. From economic point of view, Pauly has the point and got it right. However, if this would be the case since he also states that tribe contemplating approximately insurance are not poor or high risk (2), most, if not all, Americans moldiness be insured. From Gladwells article, there is a significant contradiction to Paulys point since Americans spend $5,267 per capita on health care every year and even a visit to their dentists seems to be a extravagance (Gladwell, 2005). This only depicts the reality that to be insured in the US for health care is a function expensive for ordinary citizens, which until now many Americans suffered financial bankruptcy due to unpaid amount of bills from authorized medicare.Gladwell and Pauly would both agree marginal benefits should be tantamount to marginal costs. However, what Pauly fails to consider is the capacity of every Americans to gear up health insurance for each of them. The moral hazard that Pauly would want to point out cannot have generous realization if in the first note the Americans do not have the capacity to secure health insurance. In other words, based on Gladwells article, the prevailing US health care is not even subject to moral hazard. Paulys article might be too presumptuous about the health care system situation in the US by not initiating prior consideration of the minor details just as what Gladwell exactly did. In the first place, consumers could not demand for more health care, as they do not even have one in the first place as what Gladwell would want to clearly state.Personally, I do not want to go the doctor when slide fastener was wrong with me, even though I might have a very generous constitution for my health insuran ce. In this case, the moral