The first of what I suspect many hints dropped that the government is seriously considering nationalizing health care. What I find interesting is the timing... right after admitting we are out of money Obama implies we will make changes to health care.
In addition to the health care hint there is a word on our deficit and debt.
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Is Scully trying to compare Obama to William H. Taft at the end? Taft was a progressive, anti-trust president who served only one term. He passed the Payne-Aldrich Tariff Act of 1909, which imposed an income tax on corporations' privileges of conducting business. Maybe Scully is saying that presidents who meddle in business have short careers.
ReplyDelete-John H.
I believe that nationalizing health care would overall be a good thing for the economy. While it would cost the federal government more money, the amount of money employers have to put towards it each year would add up to massive savings if they don't have to pay for it. This means that the employers are paying less out, so they are able to reduce the price of their company's products. If I understand this correctly, that means the quantity demanded would go up, and the sellers would be selling more. They would be making more money, so they would be able to create more jobs, which reduces unemployment, helping the economy at least a little bit. Again, this is only if I am understanding this correctly, I'm not 100% positive.
ReplyDelete-Anthony Broccardi
“In 2008, total national health expenditures were expected to rise 6.9 percent -- two times the rate of inflation. Total spending was $2.4 TRILLION in 2007, or $7900 per person. Total health care spending represented 17 percent of the gross domestic product (GDP).” (http://www.nchc.org/facts/cost.shtml)
ReplyDeleteIn my opinion, the government should stay as far away from the health care industry as possible. Our government runs two very unsuccessful businesses now "government motors" and AIG. The last thing that our government needs to do is add a 2.4 trillion dollar market to their "holdings portfolio."
An example of our governments recent unsuccessful reform includes the American Recovery and Reinvestment Act of 2009 (ARRA). The recently signed legislation includes a 65% COBRA subsidy to help citizens that have lost their job as a result of the recent recession. Anyone that has experienced "involuntary termination" has the option to purchase continued health care coverage through their employer for only 45% of the regular premium. This sounds all well in good, but the legislation has created a cash flow problems for many businesses. There has been a significant increase in the demand for COBRA coverage as a result of the 65% government subsidy. When an employee is involuntarily terminated the employee pays their employer 45% of their individual premium cost, while the employer covers the other 65% of the premium cost when paying the insurer. The employer than has to submit a COBRA claim to the government where they are then reimbursed. The government created cash flow problems for businesses who were about to fail because they had no cash to pay employees or continue operations. This is just a small example of our governments "business practices." (https://blackboard.temple.edu/webapps/portal/frameset.jsp?tab_id=_2_1&url=%2fwebapps%2fblackboard%2fexecute%2flauncher%3ftype%3dCourse%26id%3d_4310_1%26url%3d)
Also supply and demand in health care is very different than other industries. Patients are not as affected by price in most cases because they have a third party payment system i.e. health insurance or social security. This creates over utilization and a ton of complications for the industry.
Conclusion:
Way to expensive and too complicated for our government to nationalize health care.
Posted by - Scott Riegel