In reference to "Expert opinions on NHI Bill still split" (Cape Argus, August 15):
The report on the NHI pilot schemes is telling. It suggested inadequate planning, a lack of resources, inconsistent communication and a lack of co-ordination were problems limiting its success.
The war room in the Presidency should do courses in micro and public economics.
It teaches why the failed Soviet central planning system cannot be a substitute for the market and price mechanism. The job of the market and price mechanism is to plan, allocate, communicate and co-ordinate people and resources.
Second, we have the problem of moral hazard. If people receive the same benefits whether they are on medical aid or not, it is obvious they will opt out. And some will emigrate too. So the money will shrink and this new state-owned enterprise will ask for bailouts too.