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Tim Carney: How California ended up paying a psychiatrist $822,000 in a year

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Here is one thing government is very bad at: pricing. This is why the Pentagon pays too much for things. This is why Cash-for-Clunkers sold out instantly. Government officials go into a market (1) often required to buy something, (2) always paying with someone else’s money, and (3) artificially constrained in how much they can shop around. When a California court ordered the state prisons to...

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