Prices [for health care] really are pretty great, for all that we resent them when they signal variations in the demand for human labor. When you break the price signal, you get all manner of bad outcomes. Price signals are already pretty bad in the private insurance market, but at least they're set by negotiations between employees and employers, employers and insurers, insurers and providers . . . rather than by lobbying.
is just as wrong as this:
Interestingly, this [Ezra Klein post] seems like a variation of my argument about tipping points in markets when governments start to dominate them. I was talking about this in the context of pharmaceuticals and medical devices, where I worried about ham-fisted price controls destroying much of the incentive for efficient innovation.
Megan McArdle seems to be taking a Economics 101 view of price signals that ignores the actual market in favor of a fantasy free market, but that's based on past experience with McArdle, not exhaustive analysis, which I'm too exhausted to do.
She's freaking amazing. My admiration of her sheer gall knows no bounds. I guess she really does believe that "failure is the key to success." God knows it's worked for her.