Tuesday, March 23, 2010
Here are some disorganized thoughts about healthcare
I think the characterization of the faceless rich lining their pockets while we suffer has been over-dramatized. I doubt the health care industry in general profits as much as say, the energy or finance industries, and there are probably sectors of it that barely make a profit which would be considered healthy.
No one really supports taking the government completely out of our 'Free Market.' We have tons of constraints placed on our industries by the government and some make our problems worse. Health care is a very 'regulated' industry as it is.
I don't really get scared away by labels of Socialism, we've always had some constraints in this country so its not like anyone is really a Free Market purist; controls by themselves aren't bad.
I just think that hospitals will continue to overcharge and now they'll have a growth in patients who, on a gov't plan, pay them less. This and the fees leveled against insurance providers will make it so private insurance costs go up and they will pass that cost on to your employer making it harder for your employer to pay you or pay someone else like you.
Most of my apprehension is from my first hand exposure to the French system. The amount of transfer payments that an employer is required to pay to hire an employee adds up to more than half of the employee's annual salary. The payments go up if the employee is laid off and firing people becomes extremely difficult due to some additional constraints. Basically, France's economy can only grow by creating new business that earns enough to cover an employee + 60%. This means that those who are educated enough to get into a highly productive industry can make some profit and grow, but the working class becomes more and more dependent on the government and in turn those in their country who actually grow some sectors of their economy. The incentive for the productive members of society to make progress is progressively reduced.
We don't have a history of government programs that cover our citizens 100% besides things that protect us like police, fire, speed limits etc. So I see this as a first step toward inevitable stagnation (like France), and my feelings are negative about it.
My hope is that people will be more relaxed about health care and as a result become more productive. Perhaps our country will be made stronger by a class of people who are now provided for in a way that was previously not possible. I'm skeptical about that, however.
No one really supports taking the government completely out of our 'Free Market.' We have tons of constraints placed on our industries by the government and some make our problems worse. Health care is a very 'regulated' industry as it is.
I don't really get scared away by labels of Socialism, we've always had some constraints in this country so its not like anyone is really a Free Market purist; controls by themselves aren't bad.
I just think that hospitals will continue to overcharge and now they'll have a growth in patients who, on a gov't plan, pay them less. This and the fees leveled against insurance providers will make it so private insurance costs go up and they will pass that cost on to your employer making it harder for your employer to pay you or pay someone else like you.
Most of my apprehension is from my first hand exposure to the French system. The amount of transfer payments that an employer is required to pay to hire an employee adds up to more than half of the employee's annual salary. The payments go up if the employee is laid off and firing people becomes extremely difficult due to some additional constraints. Basically, France's economy can only grow by creating new business that earns enough to cover an employee + 60%. This means that those who are educated enough to get into a highly productive industry can make some profit and grow, but the working class becomes more and more dependent on the government and in turn those in their country who actually grow some sectors of their economy. The incentive for the productive members of society to make progress is progressively reduced.
We don't have a history of government programs that cover our citizens 100% besides things that protect us like police, fire, speed limits etc. So I see this as a first step toward inevitable stagnation (like France), and my feelings are negative about it.
My hope is that people will be more relaxed about health care and as a result become more productive. Perhaps our country will be made stronger by a class of people who are now provided for in a way that was previously not possible. I'm skeptical about that, however.
