WHAT PRICE
HEALTH
October 4,
1982
This year the people
of the United States of America spent $240 billion on their health needs; of
this amount the government spent about $106 billion give ore take a few. What
alarms economic forecasters is the fact that the government’s share of total
health care costs is climbing.
Actually $240 billion is only 8 percent of our gross
national product. That leaves 92 percent for sundries such as food, lodging,
fuel, heat and recreation. The economic advisors dread the possibility that the
government share of health spending will surpass that of the private sector.; and they really are distraught at the 8 percent
figure.
The reason that spending for health in this country is anathema
to economists is a mystery. Health care and medical care are low energy
industries that employ more Americans than most other industries; that care for
the sick and that help keep the rest of us healthy.
The economists apparently feel that if too much is spent on
health not enough will remain to spend on cigarettes, autos, gambling, alcohol of other staples.
The economists are apparently appalled at the success of
research in medicine that has brought so many new medications and technologies
on stream that we get better diagnoses for less pain than ever before.. That in itself is worth something.
Also it is surprising that that this select group
representing the best that the dismal science of economics and social welfare
has to offer, wouldn’t have anticipated that enabling Americans to afford good
medical care would prolong their lives and therefore increase the number of
doctor visits per American 65 or older.
The economists are appalled at the success of the capitalist
system; that which spawned a remarkable innovative pharmaceutical industry, a
modern-up-to-date hospital industry, a high standard of medical education and
practice and sophisticated nursing echelon. The economists can’t believe that
all of these segments of the health care industry have somehow gotten together
to work out a system of health and medical care that keeps people alive and
comfortable.
The economists lament that one good thing about the old days
– if you died you didn’t need doctors or hospitals anymore.
To compensate for the rising costs of medical care and the
wide distribution of services (it could be improved) the economists want to
ration health care. They would do this
by imposing restrictions on the rate at which health facilities can be offered
to the public, and arrange reimbursement at levels that discourage new entries
into the field.
The economists feel that so much money is being spent on
health care that the
auto industry is suffering and the housing industry is suffering. They don’t
quite care as much about human beings suffering.
However the auto industry and the housing industry are
suffering because the economic wizards have perpetrated high interest rates
which enable one to earn more money by investing it in a money fund than in a
business. This impedes expansion. The auto moguls failed for years to
understand that Europe and Japan were making better cars; we had to stick to
the macho machines – big burly, insatiable accident prone monsters that ate up
gasoline that the oil moguls for all their business acumen, couldn’t predict
would be in shortfall.
In short we have been mismanaged and misled. By government
and industry these many years; we have build roads and cars instead of trolleys
and trains. We couldn’t see the oil storm for the sand storms in the desert.
Suddenly a four passenger car made in
What’s the reason for this alarming turn of events, for the
loss of industrial preeminence by the good old
Can the difference be reconciled? Probably
not. The fundamental question is whether the American people would
rather trust their health to the doctors of economics or to the doctors of
medicine.