I've been using 100% private healthcare and education since I've had kids, in Europe and in Chile. Just saying. The only (very occasional) "voluntary" use I've had for the government is courts, cops, and local roads (highways are toll-based and under private concessions in many places outside the US including of course Chile). Note the quotes around "voluntary" since it's not like governments are leaving a choice in the matter re: courts or cops. (I do pay for my private counsel and home security.)
That local roads are paid for through local taxes makes sense since it's impractical to fund them through tolls. In practice I end up cleaning the portion of street in front of my house because the municipality only pays lip service to it. For the rest, if government grants itself monopoly of coercion then it stands to reason that people expect it to do its self-appointed job (e.g. controlling looters) regardless of whether they agree with that monopoly in the first place. If you collect the tax by coercion,then yeah at a minimum do what you said the tax was intended for.
Re: Frank on politization of Chilean building codes, that's a good point. I had long arguments with a guy (a pretty committed troll actually) on the forum at economist.com who insisted that Allende was to be thanked for them (his source: Naomi Klein and a single abstract from a seismic paper). Too bad these norms are actually originating from the private sector and where made compulsory by law long after Allende was dead (it took me hours of research to find the actual norms, how they evolved over time, their relationship to law).
People so excited about the welfare state might want to research why Bismarck set it up in the first place. Welcome to 1883, USA. Is this another nail in the American Experiment? Absolutely, but only one in a long series. Now Americans, who already make pretty disastrous lifestyle choices (see massive adoption of self-inflicted obesity, this is NOT an epidemic), get to share the effects of these bad choices with everyone by law. Keep your elective diabetes out of my healthcare pool, thanks. What is called health insurance is anything but. Insurance is meant to cover unpredictable events, not everyday occurrences. The pharma and insurance companies are thanking the Democrats for bringing them millions of new customers by law. What a travesty of law and of healthcare.
I'm predicting many aging Western nation states will collapse in the next 20 years. Some might split back to the regions they're made of (Italy or Spain come to mind), others will hold together only after drastic reforms done in the worst conditions at the last minute. Demographics will command it, and short of a sudden burst in the birthrate, the events are already set in motion to a very large extent. French public debt when I was 10 years old (28 years ago): about 20% of GDP. French public when I'll be 40: close to 100% of GDP. Same deal in southern Europe countries, same debt explosion in the UK and the USA. This with lower activity rates trending towards a minority of the overall population working. Obvious trainwreck on the way. Add to that massive, poorly-integrated immigration during the last 40 years, and the cards are going to be seriously reshuffled.
Chile, even after the earthquake: food exporter, useful commodity producer, no debt (recovering from the earthquake should be doable without taking a huge future-choking financial burden), young population. Figure out education and we're golden. It can stay where it is now, or become first world, we'll see. But a lot of the current First World is on its way down. This health insurance reform is just a bit of extra oil to grease the rails and speed up towards the trainwreck. I'm curious to see what will happen when ratings agencies (rear-view mirrors that they are) downrank the USA's sovereign debt to AA by the end of the decade. Enjoy spending more on debt service than even on healthcare - that day is coming fast.



