Moral Hazard Problem

This has nothing to do with ethics, but I feel just as strongly about it as I do about right and wrong. The moral hazard problem is the idea that people will change their behavior when the costs and benefits change. For example, the classic example is car insurance. Someone who has full coverage car insurance is likely to drive a bit more recklessly, because if they get into an accident, there is no cost to them (insurance pays!) Sure, your rates may go up, but not as much as the accident cost. Thus, people drive more recklessly when they are insured, because they don't bear the full costs of doing so.
We must let people "suffer the consequences" so that they understand the options and can make the correct choices. The problem with health care in this country could be solved by making people more responsible for their health care choices, not providing FREE health care to everyone. Can you imagine what a wreck it would be if we provided free auto insurance to everyone? There would be wrecks all over the place! Similarly, if we provide free health insurance to everyone, there would be health wrecks all over the place. Got a sniffle? Go to the doctor! It's FREE! Feeling a little down? Go get some pills! They're FREE! Want to eat deep fried Krispy Kreme bacon cheeseburgers everyday until you need triple bypass heart surgery? Go ahead! It's FREE!
When you separate consequences from choices, you aren't helping anybody. Consequences are a part of learning. As one of my favorite quotes goes: "Good judgment comes from experience. And experience comes from bad judgment."