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Americans For Prosperity Americans for Prosperity (AFP) and Americans for Prosperity Foundation (AFP Foundation) are committed to educating citizens about economic policy and mobilizing those citizens as advocates in the public policy process. AFP is an organization of grassroots leaders who engage citizens in the name of limited government and free markets on the local, state and federal levels. The grassroots members of AFP advocate for public policies that champion the principles of entrepreneurship and fiscal and regulatory restraint.

Americans For Prosperity

Is Medicare ‘Too Big to Fail’?

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Unread 11.23.09, 08:44 PM
@AFPhq @AFPhq is offline
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Is Medicare ‘Too Big to Fail’?

11.23.09 11:36 AM

During the financial disaster on Wall Street a year ago, politicians, economists, and pundits became obsessed with the term “moral hazard,” which occurs when a person, corporation, or other entity makes riskier choices because the consequences have been artificially manipulated. The Wall Street bailout created a moral hazard because it shielded financial institutions from the consequences of their actions. If a corporation knows it would be rescued by the government after making bad decisions, it has fewer incentives to change behavior or learn from mistakes.

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big, fail’, medicare, ‘too

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