Moral Hazard

Need an example of moral hazard? First think about the million eggs ( no not potential babies) donated to the Ohio food banks by egg farms. Since the need is ‘greater than ever’ and because 40% of food bank patrons WORK, should we feel good about a free source of accessible protein? Not if you now contrast this report on the ‘needy’ and ‘hungry’ with another report directly following on the news about the newly renovated water park and slide in Ohio. Millions have been spent there on improved and expanded fun. How is it possible for people hurting from hunger to afford fun at a water park ( which obviously charges a fee for admission)? Moral hazard! Moral hazard originated (1915-1920) in insurance companies as a representation of the risk of customers’ honesty and trustworthiness. The concept expanded to mean free stuff for ‘moochers’ which allows people to be corrupted when temptation is too easily available. If I don’t take free stuff someone else will and I will have to pay for it anyway. Yes, self-respect and integrity lose; but food banks and water parks win.