Questions which are rarely asked

Today it is from Megan McArdle:

Veterinary spending is rising just about in line with human medical
spending.  Kudoes to AEI for publishing a graph that seriously
undercuts one of the major conservative arguments about health care: 
that the main problem is consumers who don't bear their own costs. 
Veterinary spending is subject to few of the perversities that either
left or right suppose to be the main problems afflicting health care
spending.  Consumers pay full frieght most of the time.  They are price
sensitive, and will let the patient die if keeping him alive costs too
much.  There is no adverse selection.  There is no free riding on
mandatory care.  Government regulation is minimal.  Malpractice suits
are minimal, and have low payouts.  So why is vet spending rising along
with human spending?

There is a very nice graph in the post.


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