fort wayne right Weblog



Posted by zeakster on August 19, 2009

Rep. Jim McDermott (D-WA) wrote a piece that appeared in my local newspaper endorsing socialized medicine. McDermott thinks he points out the indisputable fact that government had to step into the breach and cover poor children and seniors with programs like Medicare, Medicaid and SCHIP, but he leaves out the fact that prior to these programs there were charity hospitals peppering the country, and doctors and nurses who devoted many hours per week working at these hospitals pro bono. I know this, because my father’s life was saved at one of these charity hospitals in Georgia back in the late 1940s. The charity hospitals were all but ended by Medicare/Medicaid, and nearly everyone reading this has known someone who has dealt with the nightmare of Medicare/Medicaid—or government health care on the Indian reservations or in the Veteran’s Administration. McDermott has a tough job indeed if he is trying to convince Americans that government health care is a knight on a white horse. Prior to 1965, the medical industry was completely free of government intervention, and health insurance was about as expensive as automobile insurance, corrected for inflation—and there were many more options for consumers. Now, patients pay about 15% of the health care dollars spent in America—and that out of pocket cost is more than three times what it was 40 years ago, corrected for inflation. About half of the remaining 85% of health care costs are paid for directly by the government, and nearly all of the other half is paid for indirectly by government either by tax deductibility or government subsidies. In other words, the American health care system is well over half socialized already. And whenever government gets involved in any industry, it causes market distortions, causing prices to rise, and availability—and sometimes quality—to either stagnate or fall. Some people suggest that health care costs have risen as a result of an exponential increase in technology, but, in fact, the opposite can be proven. Look at any other industry and what you see is higher and higher levels of technology as the years go by, and similar or lower prices. For example, a Model T, when introduced, cost about as much as a 2008 base model Ford Focus (corrected for inflation), yet can anyone deny that the Ford Focus, with it’s power steering, power brakes, safety belts, AM/FM/CD player, tire pressure monitoring system, anti-theft system, tilt-steering, 2 speed windshield wipers, air conditioning and driver and passenger cup holders, is technologically superior to the Model T? The facts are clear to anyone willing to look them up: the crisis in health care costs and availability was not a crisis until government intervention began; as government intervenes more and more in health care, the cost of health care increases. Readopting a free market in health care would lower cost and increase quality and availability. This isn’t a guess; this is a statement consistent with the facts of history. In the free market, companies are forced to compete with one another for customers. To do this, they must offer the best product or service at the lowest possible cost and the highest availability. When companies can go running to government for a handout, as under today’s system, they needn’t worry about keeping costs down or the availability of services high.


2 Responses to “HEALTH CARE DOWNER”

  1. a. nonymous said

    Complete nonsense. Unchecked greed and capitalism are headed towards self-destruction. Comparison to auto insurance is ridiculous.
    The ‘free market’ tends towards consolidation/monopoly, not ideal competition.

  2. zeakster said

    NONSENSE? do you have any clue what capitalism is? any? any at all? why dont you go visit one of those worker utopias you admire so much then come back and give us an update. you have no idea what ideal competition is wait maybe you do ideal competition is where you win no matter the circumstances. its amasing what the leftist school system here in america has done to our youth.

    do you have any idea what the difference is between auto insurance and health insurance?

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