Sunday, November 08, 2009

Debating Health Care (Poorly)

I've been hearing a lot about the state of health care in the United States. Since I have some strong opinions in this area, I present you with my own rant on the topic.

Before digging in, I wish to start with a little bit of Chinese history. Fifty years ago, Mao Zedong started introducing a series of agricultural reforms to the new agricultural communes in China. These reforms were unscientific and had not been tested; grain production dropped by nearly a quarter over the next three years. To avoid government anger, officials would exaggerate their productivity in their official reports, which in turn led the government to requisition too much grain for state projects. This cycle of deception led to the deaths of tens of millions of people by starvation--comparable to the entire body count of World War 2.

Much of the grain taken by the state was being routed to work crews building massive infrastructure--dams, canals, and so forth. Unfortunately, many of these were so poorly designed and constructed that they turned out worthless. Many trained engineers had been disqualified from the work because Mao Zedong had ideological problems with them.

Mao's successor in the communist party was named Deng Xiaoping. Deng Xiaoping abandoned many of the communist economic theories and moved China toward a comparatively capitalist system. Defending this, he said "I don't care if it's a white cat or a black cat. It's a good cat so long as it catches mice." He had been forced out of power during Mao's lifetime due to his willingness to apply market economics to China's problems. After Mao's death, he returned to prominence, and is the architect of much of modern China's prosperity. Deng Xiaoping advocated seeking truth from facts. And this is what I feel is often missing from health care debates: People make emotional or ideological arguments, with no reference to actual facts about health care.

A handful have claimed there is no need for reform. Sen. Shelby (R-Ala) claimed that Obama would destroy "the best health care system the world has ever known." Of course, he is already on government health care, so I'm not sure how to interpret that. Still, what does he mean that it's the best health care in the world? How do you even measure that? The two most obvious measures that come to mind are:

1. What is our life expectancy?
2. What is our infant mortality rate?

The problem is that the United States does badly on both of these measures. And it's not just a problem of having a large population: Japan, Canada, the United Kingdom, and France are crushing us soundly, and all have 50+ million populations.

While some of the difference is probably the poor American diet and activity levels, how do you explain the infant mortality rate? Infants all weigh pretty nearly the same amount. Besides, the problems with our health care can be measured in a host of other ways (error rate, amount of preventive care, etc.), and we fare poorly on these measures as well. There's an article linked at the end if you want some actual numbers.

There's been a lot of ideological name-calling. Claiming that health care reform is evil because it is "socialist" is an attempt to evoke the ideological red scare of yesteryear. The fact is, most of the health care systems that are destroying us on efficiency, outcomes, and access to care are socialized systems. Is it okay for more of us to die or get sick so that politicians can score points? Or do you believe that America will implement socialized health care more poorly than other countries which have done it? Why do you believe we are less competent than they are?

Some believe that government always performs poorly compared to the private market. What is this argument based on? Do you believe private mercenaries would do better than our army? Do you believe a network of private toll roads would be preferable to the Interstate system? Do you believe that the heavy government price regulation of our water, sewage, and electrical systems has resulted in poor delivery of these services? The truth is that government does certain things better than private industry, and this is a well studied issue in economics. Further, health care run fully by the government has been tried and tested dozens of times in dozens of places, and many of them are healthier than we are. It's not an automatic failure.

I think there's a hidden issue behind this hatred of government programs. American social programs are usually directed at the poor. The middle class gets taxed to pay for these things, but we don't see the benefit. I agree that this is genuinely unfair. We don't resent roads because we all see the benefit from roads. We don't resent national parks because we can all visit them. We don't resent the military because the military defends everybody. I think that a basic level of health care should also be available to everybody, however that is accomplished. I think that there'll be a fair amount of bellyaching tell it gets passed, but as long as the benefits hit everyone, we'll shortly be wondering how we lived without it.

Finally, I refer you to someone who's done a lot more research than I have. This article is much longer than this post, but is backed by a great deal more research. You may not like its conclusions, but if you wish to contradict them, do so with actual facts. Please don't fight back using pure ideology. Because if there's one point I hope I made at the beginning of this post, it's that the cost of clinging to ideology in spite of reality is measured in human lives.

7 comments:

Livingston said...

I love that you made this point.

So much political rhetoric is such obvious BS these days and the problem is it seems like half the people in this country actually believe whatever they hear because they're too lazy to actually think about it for half a second.

Livingston said...

I resent the military because it's massively over sized and it kills people. It's not really defending us either.

Shana said...

Good points.

Travis said...

I'll start by saying I want to keep government out where it doesn't belong. The whole concept of health insurance is very new by historical standards so I think that's why it is a tough issue for everyone.

For me, providing at least baseline health coverage to everyone is a societal responsibility. Some people say that health insurance should just stay a product, and that it isn't a "right".

I've really thought long and hard about this because I don't like government involvement generally speaking. But since providing health coverage to people who cannot afford it is not profitable, the market is not going to address that need. That need for society- in my mind- is great enough to accept some amount of governmental waste and inefficiency (as there almost always is) in order to provide that baseline. I think reasonable people can disagree, but for myself I do agree with the basics of this post.

Sorrel Jakins said...

Government is a very inefficient way to redistribute wealth. When righteous people govern, the waste coefficient is low. When evil, designing and conspiring men run the show, you get another FannieMae / FreddieMac. A cursory glance at the voluminous law as written indicates that it sets up a vast bureaucracy that promises to burn $$ at an ever increasing rate.

Travis said...

I actually agree with the last comment here in one sense: government should not be involved with residential mortgages- there is no "right" to own a home. The fannie/freddie mess should not exist. I think a fraction of those resources would've been better spent on rent programs/shelters/etc locally, myself.

The actual house bill that went up for vote for health care was bloated and also a bit crazy in many respects. I agree there too.

But- conceptually- I can't see any other entity providing a health insurance bottom-line base for those who cannot afford it (which I see as a societal need rather than a product- but I can agree to disagree with folks on that point, certainly) than government. I wish there was another answer, but since it is a money-losing proposition, I don't see how else to accomplish it. Though I'd be all ears to hear ideas in that vein...

Adam said...

I think that "redistribution of wealth" is a pretty lousy metaphor for socialism. Rather, I think of it thusly: government compels payment of taxes in exchange for provided services. It does so because some services are impossible to provide efficiently when you request voluntary payment for them (kind of like condo fees).

All such services disproportionately help some more than others -- fire trucks only really help people who set their homes on fire, the police only help victims of crime, health coverage is only useful to the sick. But as long as there is a *potential* for you to use that service in future, you're not too likely to resent it.

I think most of the resentment comes from services that are seen as unnecessary and totally irrelevant--and that's when you start getting epithets like "the inefficient redistribution of wealth." It's another way of saying "You're taking MY money and spending it on something that doesn't help ME." And since taxes are compulsory, you have no opt-out clause. All you can do is try and persuade the politicians (by voting, say) that you want such a service discontinued.