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Explaining Health Care to a Friend

Explaining Health Care to a Friend

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Phi est aureum posted on Sat, Jun 16 2012 8:06 PM

 

I have a friend that is generally very left-leaning on most issues. I am trying to write an essay that would lay out a plan on reforming health care. He has been reading some of my writings on the subject, and is beginning to see a bit as to why the current system is unsustainable. I had the most success when summarizing the thoughts of Bastiat on the idea of "legal plunder" and the problems that arise from it. 
 
He asked me to write a piece on what steps I think could be taken to improve the situation. He thinks there is some middle ground between my libertarian ideals based on protection of property rights and freedom of contracts and his view that health care is a "right." Obviously, this is nonsense. There is no such thing as a little socialism. However, I'm hoping to highlight some major things that could be done that would increase affordability in general as well as provide incentives for people to live healthier lifestyles (he thinks government must do something about Americans' unhealthy diets and lack of exercise, etc. He isn't even necessarily against government regulating how much sugar can be in food or how many calories one can consume daily, although he doesn't want to go that route, just to let you know how much faith he puts in the State).
 
The idea is to form a way to bridge the gap to free markets as quickly as possible without "throwing out onto the streets" all those currently dependent on Medicaid/Medicare/etc.
 
Basically, so far, the things I can think of are 1. eliminating all compulsory licensing for doctors, nurses, hospitals, medical schools, etc. 2. eliminating the FDA 3. eliminating insurance regulations.
 
Of course, I also oppose legal tender laws, the Federal Reserve, almost all forms of government spending to fix a problem, etc. as I believe the free market, if allowed to develop fully, could provide these things more efficiently, and ultimately government intervention into one industry necessarily disrupts all industries to some degree. Yet, I would like to keep my paper limited to matters that directly relate to health care.
 
My friend does show signs that give hope that he might soon begin to see the light of voluntary exchange over state-sponsored force. He has also been very disappointed by Obama's presidency. I just need to find the right way to words things to get him interested enough to begin his own research into the subject, as currently, he doesn't want to borrow any books I've offered him.
 
Anyways, the way I was thinking to help those in need until they can afford health care on their own is to use the savings from eliminating all the bureaucracies of the FDA, licensing, regulations, etc. to supplement the needy so as to free up more taxes to give back to everyone else so they can begin spending their money using their own judgement.
 
Any suggestions and ideas are very much greatly appreciated. I am sure I will get some great ideas, as I have been lurking around here for a while now, and I know there are some very knowledgable and helpful people here. So, since I finally decided to create an account here, I would like to say hello to all, and I'm happy to be a part of this community!

The only one worth following is the one who leads... not the one who pulls; for it is not the direction that condemns the puller, it is the rope that he holds.

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John James replied on Sat, Jun 16 2012 8:20 PM

Welcome to the forum!  It's so great to have you.  You're off to a great start.

 

Definitely check out The Ultimate Beginner meta-thread and the welcome thread there.  You'll probably want to bookmark it, as it's a major collection of links for things you might want to look into in the future and refer back to.

As for health care, there is actually a nice collection of resources there that provide exactly what you're looking for:

Health care

 

In particular I recommend:

Re: Healthcare, Let's Help Each Other

How to Fix Health Care Without Spending a Dime — Part 1, Part 2

Socialized Healthcare vs. The Laws of Economics

The Free Market: Four-Step Health Care Solution

 

The Ultimate Beginner meta-thread
Learn the economics of freedom
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Wheylous replied on Sun, Jun 17 2012 5:19 AM

Excerpt from one of the links above:

In a 1992 study published by the Hoover Institution, entitled "Input and Output in Health Care," Friedman noted that 56 percent of all hospitals in America were privately owned and for-profit in 1910. After 60 years of subsidies for government-run hospitals, the number had fallen to about 10 percent. It took decades, but by the early 1990s government had taken over almost the entire hospital industry.

We don't have a free market. We have socialism.

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Phi est aureum replied on Tue, Jun 26 2012 6:16 PM

 

Thanks JJ. Great stuff there. I've got that page bookmarked.

I have another request. I'm having trouble finding the most recent data on healthcare spending (total amount, as percentage of GDP, percentage paid by federal and state governments, etc.) I would like this data so I can demonstrate in numbers that we don't have free markets in health care to my friend. If anyone knows where this information could be found, I'd be greatly appreciative to have a link. Thanks a million!

Also, it would be great if anyone knows more recent statistics on what percentage of hospitals/doctors' offices are for-profit.

The only one worth following is the one who leads... not the one who pulls; for it is not the direction that condemns the puller, it is the rope that he holds.

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MMMark replied on Tue, Jun 26 2012 6:45 PM

Tues. 12/06/26 19:44 EDT
.post #185

I have another request. I'm having trouble finding the most recent data on healthcare spending (total amount, as percentage of GDP, percentage paid by federal and state governments, etc.)
This isn't exactly what you requested, but it might be of use:

Major categories of FY (Fiscal Year) 2011 spending included: Medicare & Medicaid ($835B or 24%), ...

and
Medicare, Medicaid and Social Security grew from 4.3% of GDP in 1971 to 8.4% of GDP in 2010.

See also United States federal budget.

yahoo.com search keywords: medicare spending gdp usa

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