Another 2.7% is the cyclical deficit, which shoulddisappear of its own accord as the economy recovers boosting tax revenues and reducing unemployment benefit payments.
Since a price must be paid for prejudice, many economists have suggested (though Mr Becker's own model does not necessarily imply this) that in fully competitive markets discrimination should eventually disappear, because prejudiced firms will fail.
Without federal regulation, it is a sure thing that the insurance companies would follow a similar pattern should restrictions on cross-state sales disappear.