Many lessons can be learned from the events of the recent financial crisis. One remarkable insight refers to the liability of the federal government to the well-being of the nation, a commitment that goes far beyond the classical role of the government in the American legislative and economic tradition: just like a doctor, the government can and should regulate the nation’s health; its involvement is not always necessary, but becomes irreplaceable on a cloudy day.
The establishment of Medicare in 1965 has revolutionized the liability of the federal government to its citizens. The program is much more than a public health insurance policy; it is a nation-wide social contract, which aims to protect the American society`s most vulnerable members – its elderly, sick and disabled persons – whose entitlement to the program is based merely on their physical state. Continue reading