Monday, June 15, 2009

Socialized Healthcare

... is coming to you by the end of this year, barring you forcing your representatives to vote it down. A while ago I mentioned that inflation of the money supply goes to a few places first, the banking system (Federal Reserve), education (Department of Education), military industrial complex (Department of Defense), and healthcare (Health and Human Services, Medicare, Medicaid, Social Security & Disability). Because the government is the first entity to touch freshly created credit, the sectors that it funds will see the most amount of price inflation.

If you look at tuition costs rising over the years at Universities, you will see that it has been the direct result of many billions of dollars of Federally Subsidized student loans. If those billions of dollars were not available to universities, their cost structures would have to be lower to serve students (and their parents who pay the bills). Universities are going to be in survival mode due to demographic trends and credit availability, especially at state run institutions.

But the biggest inflation problem we have is in healthcare. Instead of me talking about it, I will let the Good Doctor talk about the problems we see in healthcare, because he was there before ERISA incentivized companies to fund employee insurance (prepayment plans).

To add to what he said, one big problem I see is in the incentive systems to pharmaceutical companies. These companies are looking for cash flow generators. The government incentivizes companies to create drugs that a person will use for the rest of their life instead of actually solving health problems. Vaccines don't make money. Viagra, Ritalin, Aderol, Vioxx, Lipitor, Crestor, Ambien, and all the other pills that the drug companies market directly to you make the big bucks. To top it off, these companies get a ten year window to monopoly price their pills. So you pay $10+ per pill for something that costs less than a cent to manufacture. The approval process is governed by another extorter, the FDA. This process takes 10 years for approval and the drugs still do not have enough evidence to prove what the long term side effects of the drugs.

These drugs are poison! These drugs are meant to cover up a symptom of an underlying disease that needs to be treated. Simply masking the problem makes you a slave or an addict to the drug companies. Look, I'm a capitalist who wants to see innovative people make money. But these people knowingly poison millions of "customers" because they know that Americans are too lazy to get their problems fixed and will instead pop a pill to "cure" their symptoms while leaving the underlying problems.

Dr. Cole - I know you have something to day about this!

1 comment:

Dr. Cole Bradburn said...

Can the government effectively run "health care?"

First off, it is a travesty that they even call it health care. Medicare/medicaid refuse to pay for anything proactive or that builds health. It will pay for you to be sick, it will pay to pander to your symptoms, but it will never get you to be healthy because that is a personal responsibility. There are many people that stand to profit from your sickness, and have a vested interest to keep you as a lifelong customer. Look at the decline of our health since we added regulation. Since the creation of HMO's and PPO's, the US has spent more than 3 times as much as any other country on "health care" yet we rank 37th out of 43 industrialized nations in overall health. We also have the highest infant mortality rate from 0-2 years of age.

Dr. Ron Paul is right about the inflationary effects of third party payers. When someone else is picking up your bill, the amount of "covering your ass" to prevent litigation skyrockets, and expensive tests ensue. Again, if we were responsible for creating our own health, and invest in our staying well, you can avoid the high costs of sickness and disease. That investment will yield high returns.

Finally, do you want your Dr. to be a government employee? How good of service do you get at the DMV? If you believe that all medical personnel could be highly motivated by altruism, and that the best Dr. and worst Dr. in the country deserve the same pay, then maybe Socialized medicine has a chance...just pray that you don't end up in the office of the latter.

Obviously, we need to take back what belongs to us, our health and our money. Paying more money for entitlements to further propagate sickness and disease for those who are irresponsible is not the answer. Doing away with entitlements and using our earned money to enhance our lives is the only logical solution. This system is broken, and rather than expand it to all of America it needs to be discarded. The government thinks we are too stupid to take care of ourselves, I dare them to give us a chance to prove them wrong.