As goes health care, so goes the economy
A reader sent me this Paul Krugman articlefrom 3 years ago which he felt was pertinant in view of the recent health care posts that have been written over the past few days. (H/T to PC)
Opponents of UHI decry the cost as too great to be shouldered by the taxpayers, when in truth, we already pay for everybody’s health care, be it through medicaid, insurance, or hidden costs in the products that we purchase everyday.
According to A. T. Kearney, last year General Motors spent $1,500 per vehicle on health care. By contrast, Toyota spent only $201 per vehicle in North America, and $97 in Japan. If the United States had national health insurance, G.M. would be in much better shape than it is.
Wouldn’t taxpayer-financed health insurance amount to a subsidy to the auto industry? Not really. Because most Americans believe that their fellow citizens are entitled to health care, and because our political system acts, however imperfectly, on that belief, tying health insurance to employment distorts the economy: it systematically discourages the creation of good jobs, the type of jobs that come with good benefits. And somebody ends up paying for health care anyway.
In fact, many of the health care expenses G.M. will save by slashing employment will simply be pushed off onto taxpayers. Some former G.M. families will end up receiving Medicaid. Others will receive uncompensated care - for example, at emergency rooms - which ends up being paid for either by taxpayers or by those with insurance.
Moreover, G.M.’s health care costs are so high in part because of the inefficiency of America’s fragmented health care system. We spend far more per person on medical care than countries with national health insurance, while getting worse results.
Now, don’t get me wrong. I’m not suggesting that UHI will take care of all our economy’s woes, but it is a start to getting us back onto a level playing field when vying for contracts for production plants. That’s one expense that would be gone for good. Not to mention that healthier workers are more productive workers.
It’s a win-win.
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