What are the advantages and disadvantages of going back to paying for everything out of pocket, for society ?

Question

If there is some misconceptions , I apologize. I did not want to taint or bias the question but since you asked.
The two advantages that I like best are overall costs falling in the free market, and bringing back competition for services via supply and demand.

Answer 1

not sure what you mean? you mean paying cash for things and not using: checks, credit cards, etc?

using cash hurts... therefore you tend to spend less, and get into debt. when you use plastic or checks, you tend to remove yourself emotionally from the fact that you are really spending your money... so you usually spend more.

Answer 2

Disadvantage: I would have to have the cash upfront. I don't have 2500 up front to pay for my new living room furniture. But I can do it on a monthly basis easily. I'll have it paid off before the interest kicks in. Had I not been able to finance it - I would not have bought it and the economy would have missed out. So requiring cash up front - no financing- would probably slow the economy down since most people can not make large purchases out of pocket.

Most people would also not be able to purchase a home out of pocket either.

Answer 3

Since this question is under insurance, I assume you are asking "why don't we do away with insurance?" Well, people can't afford the disasters that hit them. Imagine an auto accident that cost $100,000 in medical bills. Who could afford it? Imagine a hurricane hitting New Orleans. Who could afford to fix up their whole house after a flood? We need insurance to spread out the risks of car accidents, fire, floods, etc.

Answer 4

Biggest advantage: Anyone who cannot afford to pay their medical bills out of pocket does not receive medical treatment and dies as a result.

Biggest advantage: Fewer cases of frustration with the insurance companies causing suicides.