Show me the money!

With all this health care talk there are ideologies at war. The Republican ideology states that lower taxes on businesses result in higher profits that are used by the business for reinvestment and growth and all the benefits that accompany growth. These benefits are, in theory, past on to the consumer. Republicans believe in trickle-down economics or supply side economics. Democratic ideology is more based on trickle-up economics, otherwise named demand side economics. By improving the lives and pocket books of the lower and middle classes, Democrats believe consumption will increase which then spurs business growth to meet the increased demand. In the health care debate, the Democrats tend to be pessimistic of for-profit health care while the Republicans feel for-profit anything is the best solution for anything.

The Republicans are afraid that a government public plan will destroy the private market for health care insurance which will in turn destroy health care as we know it today. Republicans tend to believe that unfettered capitalism will regulate itself and benefit the masses. Through this, they decry that huge health care profits should be applauded. But shouldn’t we take a second look at huge profits and how businesses use them especially when quality and affordability is declining? The theory of reinvestment using profit sounds good to me, but capitalism is a theory that looks at the long term and seems to ignore the personal aspect of capitalism and the American/business culture of immediate self-gratification. I do believe that businesses do use profits for reinvestments but I would like to see the hard data and I think Republicans should tout the facts along with the theory.

By allowing for-profit health care, where are the consumer gains? Insurers and pharmaceuticals reap billions annually in profits; however, we keep hearing that health care costs increasing so quickly that the country is going to go bankrupt while not seeing an increase in health care quality. Is the industry really reinvesting their high profits as capitalism suggests they should be? I am sure the industries are reinvesting some of their profits but the product doesn’t suggest there are reinvesting enough. Prices are not related to profit, prices are related to demand. It seems that the health care industry seems preoccupied with maximizing their profits with the customers they already have instead of increasing their market size. If health care was in fact growing, expanding, and becoming more efficient; all be signs of reinvestment; please just show us the data. Now is the time to do it. Show us all the new jobs health care creates each year. Show us the increased efficiency and effectiveness of the product. Show us how the costumer is also winning because of reinvestment and growth.

Again, I believe the theory of high profits lead to reinvestments that benefit everyone, but please show us. Data shows that more and more people cannot afford health care and it is bankrupting the country. Fewer and fewer people are insured each year. A company that reinvests should be growing their customer base. By lowering costs and increasing effectiveness, businesses should be able to sell their product to a larger base of consumers. Lower prices with more customers usually are more profitable than high prices with fewer customers; just look at Wal-Mart. But since health care is practically essential, the health care industry can abandon traditional capitalistic theory and increase prices without worrying about their customers. By squeezing out those who cannot afford health care, they are maximizing their profits from those who can afford health care. If for-profit health care were working effectively, we wouldn’t even be having this discussion. The government public plan will promote competition which will force the health care industry to come back to traditional capitalism. Health care has the capital and profits to increase their customer volume, reinvest and grow their business. If government can’t run anything as famously and repeatedly stated, private industry should easily be able to use their profits to beat the public plan in the market. I believe in capitalism, I am just waiting to see it work for more than the CEOs.

HEALTHcare

It isn’t going to be long before we start hearing from the GOP about Big Brother and government controlling our lives. Right now the talk is about how Obama’s health care program is a move towards socialism and how it will cause lines to form from the doctor’s office back to the house from which you came. But as soon as the GOP begins to see that something will inevitably be done about health care in Obama’s first term (and probably his first year) they will dampen their socialism attack angle and begin Big Brother rhetoric and the fears of government intervention into our everyday lives. But would they be wrong? Not exactly.

I think the opposition would be absolutely correct (a Republican first) in acknowledging that once the US government starts to provide a public health care policy, government will begin to legislate new laws and enact new taxes on the American people. Taxes will increase on items such as sodas, alcohol, and cigarettes. I don’t think it would be a far stretch to see the government increase taxes of food providers such as McDonalds and Burger King and tax sugary foods higher than fruits and vegetables. State money will also not be used to provide unhealthy foods in our schools cafeterias. Tax increases will extend past final food products to agriculture and industry; raising emission and pollution standards and changing current agriculture subsidies and tax break policies. Republicans and some Democrats will be in an uproar about these impending laws, regulations and taxations. There will be the usual screams that government intervention and free market manipulation will destroy the businesses in question and how the government can’t be allowed control how we live our lives.

The future debates over health care reform are predictable, but I do not believe they are entirely warranted. Time and time again, the American public has shown that they cannot control themselves as a whole. Our finance consumption and reckless behavior has led us to our current economic recession. Our health habits are bringing us to a different type of disaster. Currently it is relatively difficult and expensive to eat healthy. Not only will prices of unhealthy foods increase through new taxes, but prices of fruits and vegetables will probably decrease through government subsides and tax breaks. Sometimes the American public need a little nudge to move in the right direction. This country is becoming increasingly unhealthy but hopefully the right policies can be adopted to help transition America to a more health friendly culture.

To control health care costs, preventative care will become just as important as the help we receive at the time of need. Americans should have the freedom to eat what they want, when they want, but the government shouldn’t have to pay for it down the line. The government will have to try to tax Americans into being healthier. By decreasing pollution, cigarette use, alcohol use, and sugar consumption, the government will be altering America’s food culture which will in turn decrease somewhat preventable diseases; diabetes, heath disease, blood pressure etc. and keep health care costs low. Since nothing in this country is a pure free market, I believe the government has the right to protect its health care investment by trying to make America a healthier country. No legislator is crazy enough to enact a dramatic and immediate policy that will cripple businesses. Policy and taxation, when used correctly can be used to safely steer industry down a new path without being too restrictive and without paralyzing the dynamics of the American economy that made this country so strong. The measures taken to make us healthier should be applauded for trying to improve the lives of Americans. America will continue to be a country based on consumption; however, that consumption needs to be much less destructive.

The passing of health care reform is going to lead to widespread changes in taxes and regulations in numerous aspects of the American economy. Health care reform will not only help those in need afford health care, but it will also help make the country lead healthier lives. Sure it appears health care reform is going to alter American culture through government action, but I think in this the case the ends will definitely justify the means.