Showing posts with label Applied Economics. Show all posts
Showing posts with label Applied Economics. Show all posts

Wednesday, July 22, 2009

Health Care Reform Explained!!!


This is the best book to read to explain why government health care reform will ruin health care. Particularly Chapter 3.
You can get it here "Applied Economics."
His recent article about health care is below, but the book is a must read!!
Medical Care Confusion
Thomas Sowell

Is there a coherent argument for government-controlled medical care or are slogans and hysteria considered sufficient?
We hear endlessly about how many Americans don't have health insurance. But, if we stop and think-- which politicians hope we never do-- that raises the question as to why that calls for government-controlled medical care.
A bigger question is whether medical care will be better or worse after the government takes it over. There are many available facts relevant to those crucial questions but remarkably little interest in those facts.

There are facts about the massive government-run medical programs already in existence in the United States-- Medicare, Medicaid and veterans' hospitals-- as well as government-run medical systems in other countries.

None of the people who are trying to rush government-run medical care through Congress before we have time to think about it are pointing to Medicare, Medicaid or veterans' hospitals as shining examples of how wonderful we can expect government medical care to be when it becomes "universal."

As for those uninsured Americans we keep hearing about, there is remarkably little interest in why they don't have insurance. It cannot be poverty, for the poor can automatically get Medicaid.
In fact, we already know that there are people with substantial incomes who choose to spend those incomes on other things, especially if they are young and in good health. If necessary, they can always go to a hospital emergency room and receive treatment there, whether or not they have insurance.
Here, the advocates of government-run medical care say that we all end up paying, one way or another, for the free medical care that hospitals are forced by law to provide in their emergency rooms. But unless you think that any situation you don't like is a reason to give politicians a blank check for "change," the relevant question becomes whether the alternative is either less expensive or of better quality. Nothing is cheaper just because part of the price is paid in higher taxes.
Such questions seldom get asked, much less answered. We are like someone being rushed by a used car dealer to sign on the dotted line. But getting stuck with a car that is a lemon is nothing compared to signing away your right to decide what medical care you or your loved ones will get in life and death situations.

Politicians can throw rhetoric around about "bringing down the cost of health care" or they can even throw numbers around. But the numbers that politicians are throwing around don't match the numbers that the Congressional Budget Office finds when it analyzes the hard data.

An old advertising slogan said, "Progress is our most important product." With politicians, confusion is their most important product. They confuse bringing down the price of medical care with bringing down the cost. And they confuse medical care with health care.

Nothing is easier than for governments to impose price controls. They have been doing this, off an on, for thousands of years-- repeatedly resulting in (1) shortages, (2) quality deterioration and (3) black markets. Why would anyone want any of those things when it comes to medical care?
Refusing to pay the costs is not the same as bringing down the cost. That is why price controls create these problems. When developing a new pharmaceutical drug costs roughly a billion dollars, you are either going to pay the billion dollars or cause people to stop spending a billion dollars to develop new drugs.
The confusion of "health care" with medical care is the crucial confusion. Years ago, a study showed that Mormons live a decade longer than other Americans. Are doctors who treat Mormons so much better than the doctors who treat the rest of us? Or do Mormons avoid doing a lot of things that shorten people's lives?
The point is that health care is largely in your hands. Medical care is in the hands of doctors.
Things that depend on what doctors do-- cancer survival rates, for example-- are already better here than in countries with government-run medical systems. But, if political rhetoric prevails, we may yet sell our birthright and not even get the mess of pottage.

Thursday, July 16, 2009

Health Care Reform Explained




This is the best book to read to explain why government health care reform will ruin health care. Particularly Chapter 3.
You can get it here "Applied Economics."
His recent article about health care is below, but the book is a must read!!
Alice in Medical Care
By Thomas Sowell

Most political and media discussions of medical care have an air of unreality reminiscent of Alice in Wonderland. There is an abundance of catch-phrases but remarkably few coherent arguments.
Let's start at square one. Why is there alarm about American medical care? The most usual reason given is because its cost is high and rising.
That is certainly true. We were not spending nearly as much on high-tech medical procedures in the past because there were not nearly as many of them, and we were not spending anything at all on some of the new pharmaceutical drugs because they didn't exist.

This general pattern is not peculiar to medical care. Cars didn't cost nearly as much in the past, when they didn't have air-conditioning, power steering and high-tech safety features. Homes were cheaper when they were smaller, had fewer bathrooms and lacked such conveniences as built-in microwave ovens.
We would like to have all these things without the rising costs that come with them. But only with medical care is such wishful thinking taken seriously, with government regarded as a sort of fairy godmother who will give us the benefits without the costs.

A cynic is said to be someone who knows the price of everything and the value of nothing. If so, then it is political cynicism to point to other countries that spend less on medical care, including some countries where there is "universal health care" provided "free" by their governments.
Just as medical care, houses and cars were all cheaper when they lacked things that they have today, so medical care in other countries is cheaper when they lack many things that are more readily available in the United States.
There are more than four times as many Magnetic Resonance Imaging units (MRIs) per capita in the United States as in Britain or Canada, where there are government-run medical systems. There are more than twice as many CT scanners per capita in the United States as in Canada and more than four times as many per capita as in Britain.
Is it surprising that such things cost money?
The cost of developing a new pharmaceutical drug is now about a billion dollars. Neither political rhetoric nor government bureaucracies will make those costs go away.
We can, of course, refuse to pay these and other medical costs, just as we can refuse to buy air-conditioned homes with built-in microwave ovens. But that just means we pay attention only to prices and not to the value of what we get for those prices.
We can even refuse to pay for so many doctors. But that just means that we will have to wait longer to see a doctor — as people do in countries with government-run medical systems.

In Canada, 27 percent of the people who have surgery wait four months or more. In Britain, 38 percent wait that long. But only 5 percent of Americans wait that long for surgery.
Surgery may well cost less in countries with government-run medical systems — if you count only the money cost, and not the time the patients have to endure the ailments that require surgery, or the fact that some conditions become worse, or even fatal, while waiting.
A recent report from the Fraser Institute in Canada shows that patients there wait an average of ten weeks to get an MRI, just to find out what is wrong with them. A lot of bad things can happen in 10 weeks, ranging from suffering to death.
Politicians may talk about "bringing down the cost of medical care," but they seldom even attempt to bring down the costs. What they bring down is the price — which is to say, they refuse to pay the costs.
Anybody can refuse to pay any cost. But don't be surprised if you get less when you pay less. None of this is rocket science. But it does require us to stop and think before jumping on a bandwagon.
The great haste with which the latest government expansion into medical care is being rushed through Congress suggests that the politicians don't want us to stop and think. That makes sense, from their point of view, but not from ours.

Wednesday, July 23, 2008

Economics Reading - Applied Economics

I wanted to let you know about this book if you are interested in reading about economics. Of course in the Kingdom of God http://www.gnmagazine.org/booklets/GK/, some of these laws are different, not only because of a lack of sin, but also a lack of scarcity, as it says in Genesis that mankind would have to "toil for their productivity" as a punishment for Adam's sin. Anyway, this book does talk about some of the hot button issues of our time - labor, medical care, and housing - as the Contents Listing below describes, in an easy to understand way. If you are watching the news and some of the issues are somewhat confusing, then this is a great book to read to help with your understanding. I do hope that you find this interesting.

Applied Economics by Thomas Sowell
http://www.worldcat.org/oclc/52251413&referer=brief_results

Contents:
Politics versus economics -- Free and unfree labor -- The economics of medical care -- The economics of housing -- Risky business -- The economics of discrimination -- The economic development of nations.

Columns by Thomas Sowell
Get Thomas Sowell’s columns & more emailed to you
Thomas Sowell was born in North Carolina and grew up in Harlem. As with many others in his neighborhood, he left home early and did not finish high school. The next few years were difficult ones, but eventually he joined the Marine Corps and became a photographer in the Korean War. After leaving the service, Sowell entered Harvard University, worked a part-time job as a photographer and studied the science that would become his passion and profession: economics.
After graduating magna cum laude from Harvard University (1958), he went on to receive his master's in economics from Columbia University (1959) and a doctorate in economics from the University of Chicago (1968).
In the early '60s, Sowell held jobs as an economist with the Department of Labor and AT&T. But his real interest was in teaching and scholarship. In 1965, at Cornell University, he began the first of many professorships. His other teaching assignments include Rutgers University, Amherst University, Brandeis University and the University of California at Los Angeles, where he taught in the early '70s and also from 1984 to 1989.
Sowell has published a large volume of writing. His dozen books, as well as numerous articles and essays, cover a wide range of topics, from classic economic theory to judicial activism, from civil rights to choosing the right college. Moreover, much of his writing is considered ground-breaking -- work that will outlive the great majority of scholarship done today.
Though Sowell had been a regular contributor to newspapers in the late '70s and early '80s, he did not begin his career as a newspaper columnist until 1984. George F. Will's writing, says Sowell, proved to him that someone could say something of substance in so short a space (750 words). And besides, writing for the general public enables him to address the heart of issues without the smoke and mirrors that so often accompany academic writing.
In 1990, he won the prestigious Francis Boyer Award, presented by The American Enterprise Institute.
Currently Sowell is a senior fellow at the Hoover Institute in Stanford, Calif.