Originally posted by: HGC
The supply of quality healthcare is limited. The demand is unlimited. This means it must be rationed in one way or another. Obamacare prescribes rationing by the State. Tea party-goers mostly favor rationing by markets.
A good system would need to have some sort of a deterrent to prevent people from rushing to the hospital anytime their cat scratches them or they have a hangnail. I don't see why implementing some sort of a small co-payment or other type of deterrent for hypochondriacs should be a problem.
Around the world and throughout history, more prosperity correlates with more economic freedom, ie, with lower taxes, regulations, tariffs, and government spending. The more central government meddling in an economy, the more corruption and the lower the standard of living.
As a fan of
Atlas Shrugged and former student of Objectivism, I tend to agree, except for your claim that unrestricted international trade is always good and beneficial for the local economy.
This is why Tea people favor a limited government approach, and why they connect emotionally with the vision of the Founding Fathers and with the perpetrators of the original Boston Tea Party.
You're probably correct about that part. Unfortunately, they take the above notions as an almost absolute dogma without stopping to ask where, in reality, the free market works and where it doesn't.
A free market health reform proposal:
1. No tax break for employer provided health insurance.
2. Freedom to buy health insurance across state lines.
3. Tax credits to everyone to buy private catastrophic coverage, and outright subsidies to the poor and almost poor, as with the earned income tax credit.
Wait a second! If you are providing subsidies for the poor, then isn't that really an instance of evil socialism? Doesn't that mean that wealth will be stolen from some people at gunpoint by the threat of the initiation of physical force in order to altruistically provide for other people's needs?
4. Tax-free medical savings accounts to pay for routine non-catastrophic health care, including preventive and alternative medicine. Partial, not full, subsidies for the same for non-taxpayers.
5. Have malpractice suits arbitrated by a board of physicians, medical administrators and patients. Require doctors and hospitals to pay into a fund for malpractice awards. This will take contingency fee driven lawyers out of the equation.
I don't see why lawyers still couldn't take the cases on contingency. A key element of our tort system is that by it actually reduces the amount of medical mistakes, reducing the overall incidence and costs of those mistakes. Do we want to remove the disincentives against negligence from the system? One worthwhile reform might be to have juries composed of physicians to hear the cases, which isn't all that different from arbitration other than that the current civil procedure wouldn't change much.
6. Require medical service providers to hand out a rate card and post prices on the internet, prior to treatment.
That might be a step in the right direction, however, there isn't any way to really escape the fact that health care as a good and service does not fit the model of perfect competition very well. When you are at the hospital and a doctor says you need to have such and such a procedure done now, you're not going to start price shopping. Also, with most goods and services, people can either opt not to purchase them at all or put off the purchase or find alternatives or choose goods of lesser quality; this is not the case with health care.
Furthermore, health care is complicated. Can we really expect lay people to be able to place a value on coverage for thousands of individual procedures or to make sense of an insurance contracts? Even today, you almost need to get a lawyer who specializes in health insurance to read through the different contracts. Remember, under true free market medicine, insurance providers would try to find all sorts of ways to drop people for illnesses and to otherwise screw them in a way that would hold up in a court of equity, so people really would (and do) need lawyers to read through the contracts to make sure they don't get screwed in those regards.
In short, end the ridiculous illusion that somebody else (corporations, the government, insurance companies) pays for health care. We do. Make that explicit and competition will return to the market and drive down costs and drive up quality. Use the savings to subsidize care for the needy.
As I've explained, the biggest problem is that health care does not fit perfect competition well. True free market medicine (not the semi-socialized mess we have today) would still have a great many problems.
The government, for the most part, does not supply our food, clothing, or shelter. Are those less important than health care?
But those items are more straightforward and not nearly as difficult to obtain. When you purchase food, your food purchase doesn't later get rescinded because you were diagnosed with cancer. When you purchase a house, you don't need to read through a 200 page contract detailing 5000 different medical conditions that you might develop and need treatment for. (You do want to have a lawyer for major real estate purchases, but it's pretty straightforward.)
To the extent the government did try to give us housing, with Fannie and Freddie, it helped create a crisis.
For decades, the system worked properly, as I understand it. The problem was when the alternative mortgages came onto the market and the lenders and those that ultimately purchased the loans became irresponsible. They shouldn't have been bailed out for any of this.
Imagine what would happen to Safeway and Whole Foods if there was a grocery chain "public option" with taxpayer subsidized prices below what these stores could offer. Then imagine the choices and service at government supermarkets after the private stores go under. Imagine what would happen to innovation in the PC market if we had to buy our rigs from the government.
Thank goodness that food and computers fit the model of perfect competition well, unlike health care.
How do you explain how other nations manage to spend a smaller percentage of their GDP for socialized medicine that covers 100% of the population? According to the free marketers theory, these looters' and moochers' people's states should have collapsed into widespread poverty and chaos decades ago. Why hasn't Atlas shrugged Britain, France, German, Japan, Switzerland, and Taiwan into third world nationhood? We don't need to argue about whether or not bona-fide socialized medicine can work in theory, we already have a number of concrete examples to point to. Some of the programs are even semi-market based where heavily-regulated insurance companies (that barely resemble American companies) provide the health coverage.
Could you please point to a concrete example of true free market health care that is working better than the socialized medicine systems of those other nations I mentioned? It's easy to say that in theory forces of perfect competition would lead to market efficiencies and cost savings and that it would solve all of the problems we have today, but it's harder to actually refute the arguments that it would not work and to then point to a concrete example of its success. The advocates of national health care and socialized medicine can point to concrete examples of working socialized systems that consume a much smaller percentage of GDP than what the U.S. is currently spending (while leaving tens of millions of Americans uninsured or under-insured with the rest living in terror), but can you point to some working examples of true free market health care?
What's your opinion of the following presentation? This is a must-watch video for anyone who's seriously interested in this issue, btw. (Just click on "Watch the Full Program Online" to watch the video.)
http://www.pbs.org/wgbh/pages/...ne/sickaroundtheworld/
http://www.pbs.org/wgbh/pages/...undtheworld/countries/