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.