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Commentary

An analysis of the Democrats socialist health care policies

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I would summarize the ideals of Democrats (socialists) as follows:

  1. There are unequal life outcomes in society
  2. Those who have little wealth are the victims of those who produce wealth
  3. We (democrats) must transfer wealth until everyone’s life outcomes are equal, regardless of their life choices
  4. We (democrats) must use government coercion to achieve this equality
  5. Since we (democrats) are so morally superior, we are not obligated to transfer our own wealth to anyone

Consider health care. Some risky lifestyle choices are more likely to require more health care services. The socialist’s goal is to make sure that no one is deterred from making these risky choices. Those who do not engage in these risks must be forced to pay for the health care of those who do choose to take on these risks. That way, everyone is equal in the end.

The way this is done is to make sure that people who don’t engage in risky behaviors cannot pay less for their health care than those who do engage in risky behaviors. Let me explain.

Suppose a safe person S knows that he only needs coverage for catastrophic care, since his lifestyle choices eliminate the need for elective treatments like abortions, birth control, STD medications, sex changes and drug addiction treatments. He can be covered for a very low premium.

Consider another irresponsible, risky person R who is engaged in all kinds of risky behavior. He can be covered for all of the medical services for a very high premium. His own choices expose him to risks that will require more medical services.

Democrats (socialists), solve this problem by forcing S to pay for mandatory health care with a very high premium that covers services he will never use. That way, he is really paying for his own health care, and R’s health care, too.

Take a look at this article I found on Health Care BS. In the article, they cite Michael Tanner of the Cato Institute, who analyzes the health care policies that may be included in the Democrats’ health care reform bill.

This is the one I want to draw your attention to, because this is what single-payer countries like Canada have that causes them so many problems:

An Individual Mandate. Every American will be required to buy an insurance policy that meets certain government requirements.  Even individuals who are currently insured — and happy with their insurance — will have to switch to insurance that meets the government’s definition of acceptable insurance, even if that insurance is more expensive or contains benefits that they do not want or need.

And here is another one that will force employers to lay off American workers because employers have to pay more for the same productivity.

An Employer Mandate. At a time of rising unemployment, the government will raise the cost of hiring workers by requiring all employers to provide health insurance to their workers or pay a fee (tax) to subsidize government coverage.

Yes, that’s right. Socialism attacks businesses. Attacking businesses causes unemployment.

And there’s more:

A Government-Run Plan, competing with private insurance.  Because such a plan is subsidized by taxpayers, it will have an unfair advantage, allowing it to squeeze out private insurance.  In addition, because government insurance plans traditionally under-reimburse providers, such costs are shifted to private insurance plans, driving up their premiums and making them even less competitive. The actuarial firm Lewin Associates estimates that, depending on how premiums, benefits, reimbursement rates, and subsidies were structured, as many as 118.5 million would shift from private to public coverage.   That would mean a nearly 60 percent reduction in the number of Americans with private insurance.  It is unlikely that any significant private insurance market could continue to exist under such circumstances, putting us on the road to a single-payer system.

When government controls your health care, you pay them at gunpoint and when you want care you get in line behind people who paid nothing into the system. That is socialized medicine, the dream of all Democratic socialists.

And there’s also redistribution of wealth:

Massive New Subsidies. This includes not just subsidies to help low-income people buy insurance, but expansions of government programs such as Medicaid and Medicare.

And remember what I said about the government needing to reducing costs when demand skyrockets for “free” care?

Government Playing Doctor.   Democrats agree that one goal of their reform plan is to push for “less use of aggressive treatments that raise costs but do not result in better outcomes.”  While no mechanism has yet been spelled out, it seems likely that the plan will use government-sponsored comparative effectiveness research to impose cost-effectiveness guidelines on medical care, initially in government programs, but eventually extending such restrictions to private insurance.

This is all caused by the good intentions of people who have no knowledge of economics, whatsoever. And it is important to note that it is this kind of naive, incompetent meddling in the free-market that leads to poverty and the loss of all of our liberties.

Further study

Here are some previous links that are relevant:

Commentary

Walter Williams evaluates Sweden’s single-payer health care system

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Walter Williams is my second favorite active economist, just behind Thomas Sowell. (I also like John Lott, Robert P. Murphy and Jennifer Roback Morse – see my blogroll for links) In a recent article, Williams takes a look at how well Sweden’s single-payer, socialized health-care system is working out for its customers. The productive Swedish taxpayer forks over a lot of money to the government. What do they get in return?

First, what is socialized medicine? (which we are moving toward, since porkulus passed)

  1. Producers pay huge amounts of taxes to the government .
  2. Low-achievers pay nothing, since they have no income.
  3. When you want treatment, you have to get in line behind everyone else – especially behind special interest groups, such as people wanting sex-changes.
  4. The taxation is compulsory, the treatment of patients is at the government’s discretion.

Williams begins his article by evaluating the UK’s National Health Service:

A recent study by David Green and Laura Casper, “Delay, Denial and Dilution,” written for the London-based Institute of Economic Affairs, concludes that the NHS health care services are just about the worst in the developed world. The head of the World Health Organization calculated that Britain has as many as 25,000 unnecessary cancer deaths a year because of under-provision of care. Twelve percent of specialists surveyed admitted refusing kidney dialysis to patients suffering from kidney failure because of limits on cash. Waiting lists for medical treatment have become so long that there are now “waiting lists” for the waiting list.

And then there’s Canada single-payer socialized system:

…after a Canadian has been referred to a specialist, the waiting list for gynecological surgery is four to 12 weeks, cataract removal 12 to 18 weeks, tonsillectomy three to 36 weeks and neurosurgery five to 30 weeks. Toronto-area hospitals, concerned about lawsuits, ask patients to sign a legal release accepting that while delays in treatment may jeopardize their health, they nevertheless hold the hospital blameless. Canadians have an option Britainers don’t: close proximity of American hospitals. In fact, the Canadian government spends over $1 billion each year for Canadians to receive medical treatment in our country.

The article cites Sven R. Larson, who recently completed the book “Lesson from Sweden’s Universal Health System: Tales from the Health-care Crypt,” published in the Journal of American Physicians and Surgeons (Spring 2008). The first thing about socialized health care is that you don’t pay for treatment like you shop at Wal-Mart. The government takes your money and makes sure that everyone is treated equally, regardless of each individual’s earned income and lifestyle choices.

Mr. D., a Gothenburg multiple sclerosis patient, was prescribed a new drug. His doctor’s request was denied because the drug was 33 percent more expensive than the older medicine. Mr. D. offered to pay for the medicine himself but was prevented from doing so. The bureaucrats said it would set a bad precedent and lead to unequal access to medicine.

When health care is free for consumers, demand increases. Doctors and drug companies stop producing since the government won’t let them make a profit. Since the government is the single-payer, then the only way to stop the shortage is to ration medical services, often based on leftist victim ideology. Socialists don’t trust you to make your own decisions about how you earn income or how you spend it.

Here’s a bit more from the article:

Malmo, with its 280,000 residents, is Sweden’s third-largest city. To see a physician, a patient must go to one of two local clinics before they can see a specialist. The clinics have security guards to keep patients from getting unruly as they wait hours to see a doctor. The guards also prevent new patients from entering the clinic when the waiting room is considered full. Uppsala, a city with 200,000 people, has only one specialist in mammography. Sweden’s National Cancer Foundation reports that in a few years most Swedish women will not have access to mammography.

Wow, that smacks of fascism! But that is where socialism inevitably leads. In Canada, you can’t even buy your own drugs and treatment, even if the government puts you on a waiting list (dying list?), or if it won’t pay for treatment at all. Private purchases of health care or medical drugs are illegal in Canada. (except for Quebec, oddly enough, because of a recent court decision).

The problem with a system in which low-risk producers pay for the services, but don’t use them while high-risk victims use the services, but don’t pay for them, is that there is no incentive for people to be healthy. As people act more and more recklessly, the government steps in and starts controlling their lives in order to reduce costs. Fascism.

Socialized medicine redistributes wealth in order to equalize the outcomes of good lifestyle choices and poor lifestyle choices. The more that lifestyles are equalized, the less personal responsibility there is among the citizens. Eventually, the government takes control of people’s lives to reduce costs. This article shows how it’s happening in Canada, as they try to ban trans fats:

A mammoth government program is a poor excuse for further encroachment on people’s lives–maybe fewer government entitlements would encourage smarter and healthier habits. If the ban is the sword of the nanny-state crusader, surely the health-care system represents his shield.

Freedom means deciding how much security to want, based on your own free choices and the risks you assume.

A useful podcast on health care and government, featuring Sally C. Pipes on the Dennis Prager show is here. For a good explanation of supply, demand and shortages, see this Von Mises Institute article.

UPDATE: Saw this UK Telegraph story on a single NHS hospital (H/T Stop the ACLU):

NHS managers were yesterday accused of putting targets and cost-cutting ahead of patients as a report into at Mid-Staffordshire Hospitals trust found up to 1,200 people may have died needlessly due to “appalling standards of care” at a single hospital.

…Last night patient groups voiced concern that managers who should have spotted failings at the trust but did not raise the alarm have been promoted to key jobs in the NHS and health care regulation.

…The investigation into care between 2005 and 2008 found overstretched and poorly trained nurses who turned off equipment because they did not know how to work it, newly qualified doctors left to care for patients recovering from surgery at night, patients left for hours in soiled bedclothes and reception staff expected to judge the seriousness of the condition of patients arriving at Accident and Emergency.

Doctors were diverted from seriously ill patients to treat ones with minor problems to make the trust look better because it was in danger of breaching the Government’s four-hour waiting time target.

News

France, Germany and Italy warn G20 nations against Obammunism

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I was browsing over at the Anchoress and I found some very interesting links in her link-filled post here. She runs a blog that features a mix of Catholic-oriented reflections and a conservative perspective on the news of the day.

Here’s the part of her post that caught my attention:

Not good: First Putin told him not to, now France and Germany. Boy, didn’t the left HATE when Bush was this stubborn and set on his own way? And he didn’t listen to other countries? I seem to remember the left really, really hating that. About Bush. They hated these things too. When Bush did them.

Here is the warning from France and Germany from the Financial Times, via American Thinker:

Disagreements between the European Union and the US over how to combat the global recession widened on Tuesday as EU governments made clear they had little appetite for piling up more debt to fight the collapse in output and jobs.

Finance ministers from the 27-nation bloc insisted in Brussels that it was doing enough to support world demand and did not need at present to adopt another fiscal stimulus plan, as Washington is urging.

The US-European differences are casting a shadow over next month’s summit in London of leaders from the G20 group of advanced and emerging economies, an event to be attended by Barack Obama on his first visit to Europe as US president.

It’s true that France, Germany and Italy have all elected conservative leaders recently, (along with Japan, Canada, the Czech Republic and Mexico). I thought that these European socialist countries were to the left of the USA. Are we now to the left of France, Germany and Italy?

You might remember that I posted recently about former-communist Russia warning Obama about the dangers of socialism. Former-communist China also warned Obama to stimulate the economy with tax cuts, not spending. Instead, Obama raised taxes and spent trillions.

Canada, Japan and Mexico also elected conservatives governments. Why can’t we be more like them? Why do we have to embrace Obama’s unilateral, cowboy-communism? Why must Obama anger the world with unpopular economic policies that fail the “global test”? Why does Obama make the world hate us?