In a new Prager U video, Former Member of Congress Bob McEwen explains why the government cannot possibly fix healthcare.
Using a television purchase as an example, he explains that only you know which one best fits your needs (picture, sound quality, etc) and your budget. This is a first-party purchase. The person paying is the person using.
However, if you're buying something for someone else, you care about the price, but not as much about the quality. And if you're going to use something but not pay for it, you're concerned more about the quality than the price. This is a second party purchase.
Finally, McEwen explains how when it's not your money paying for something and you're not using it, you don't care about the price or quality:
“All government purchases are third party purchases. The government spends other people's money on things it won't consume. It doesn't care about the price or the quality. Thus, there will always be waste in government spending.”
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