Friday, March 6, 2009

Forcing gov't to "save" may be bad for your health

Another unintended consequence that comes from the misguided belief that government must "save" can be seen in the health care area. Under Obama's new budget there are forced cuts in Medicare spending on MRI's and X-ray procedures. These procedures often help doctors save lives and the cuts in spending fall on the most needy. Again, this is coming from a Democratic President who promised to help the middle class and the most needy.

As a result of reduced payments for these services, companies like GE, Siemans and others, will sell fewer MRI machines and X-Ray devices. That means they will lay off more workers, leading to more income destruction of the private sector, etc.

You would think that it starts to become evident, at some point, that forcing the government to run like a profit seeking enterprise, KILLS private enterprise and the private sector.

On the other hand, if Obama boosted payments for medical services, GE and other companies in the health care sector would sell more machines, hire more workers, incomes would be increased (and more taxes paid) and so on and so forth. Not to mention the fact that healthier people constitute more efficient human capital. A virtuous cycle is created.

So why don't we do it?

False beliefs, misconceptions, deficit fears, etc.


Matt Franko said...

I almost cant believe this but this was on Chris Whalen's blog this week:
"Indeed, yesterday we were slumming at the Four Seasons in New York. Among the dinosaurs we observed grazing in the tall grass of this Midtown Manhattan refuge for the transactional class was former C director Robert Rubin, former New York Fed Chairman Pete Peterson and Treasury Secretary Geithner, who apparently was there to get new instructions from his sponsors.

Before Geithner arrived for lunch, Peterson reportedly asked one NY real estate mogul: "How much of that toxic paper is there?" Now we may know where Geithner gathers his market intelligence -- over a luncheon table in New York with his owners. Next time we are going to bring the flip-cam. "

Can you think of any two worse people for him (Sec Giethner) to have lunch with? Bad.

Eric Z said...

Health care should have been nationalized a long time ago. End of story.

mike norman said...


It's sickening. I now believe we are headed for a full blown depression or one notch above. It will look something like this: the government will sustain certain segments of the population at subsistence levels for limited periods of time. The rest of us will live in a feral state. There will be crime, violence, social disorder and/or police-state conditions.

As all this unfolds (and it is starting) the architects of the belief system that is wreaking havoc on our nation sit and lunch at a swank Midtown Manhattan restaurant. They are beyond despicable.

To say that this is some devious plan of theirs; some form of subterfuge with a desired outcome, is to credit them with far too much intelligence and cunning.

What this is, is simply another example of a ruling class that has enjoyed a long reign of power. Their arrogance and elitism make them feel above those they rule. Power and status now intoxicate them to the point where they no longer feel it is necessary to tell the truth, or expend the effort to actually know things. They believe they are gods and in their minds the masses must always submit to the will of the gods.

A revolt will come one day, but only when conditions for the populace become so bleak and desperate that they have nothing to lose.

History has shown this time and again to be true.

googleheim said...

as for being small business owner, i would hire someone if i did not have to pay the healthcare, which national healthcare could help.

letting go of the payroll tax would make it really easy to get an employee on board as well.