The Government versus the Market in Protecting against Economic Misfortune

Testo disponibile solo in lingua inglese.
Arguably the most important reason which prompts many to reject the market in favour of the government as the most fundamental institution of social order is the convinction that the marketplace alone can never deal adequately with the inevitable consequences of misfortune. Few deny in fact that government has an important role in implementing the philanthropic elements of social policy: it is seen as an insurer. This essay seeks to take this insurance conception seriously and attempts to highlight the merits of the market and the government in the provision of insurance against economic misfortune. The first part explains how the private insurance market works. The second part compares public and private insurance both theoretically and through a review of government provided or regulated insurance programmes in a variety of contexts. Finally, the third part describes the normative significance of the differences highlighted.

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