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HEALTH


                                             June 18, 2007

                                                    (Perhaps part of a
                                                    'Tarian's Progress
                                                    series...)
 Back in the mid-80s, at the
 height of my "libertarian"
 craze, I thought "socialized         ("Socialized medicine" is what we
 medicine" was a horrible idea.        used to call it back then.  Now
                                       it's called "universal health
 Back in those days I bought           care", a sign that it may be
 the libertarian arguments             about to win in the great
 against it:                           dumbed-down market place of ideas...
                                       "universal" no doubt polls better
                                       than "socialized".)

Expect long waiting
lines, because           (At that point, Britain was famous
they're symptomatic      for long delays: though Canada did
of government            a bit better, presumably because
rationing systems,       they spent more on it.)

Cutting the profit motive
out of the equation would     R&D requires cash, and to pay for that
have a very bad impact on     you need to be able to charge a lot
innovation.                   for new techniques... at least while
                              they're new.
Quality was claimed
to be better on the                          As time goes on you expect the
American side of the                         R&D to be paid off and mass
border with Canada.                          market efficiencies to kick-in,
                                             and the price should come down
                Presumably because           to make the new technique
                the best doctors             available to everyone.
                preferred living
                with the least
                government controls.

                               I talked to at least one guy
                               who thought that the fix for
So essentially I               that problem was simple:
believed in a "free            convert the whole world
market" for health             over to government run systems
care on largely                then they won't have any
theoretical grounds.           choice in the matter.
                                                                 RANDRHET
But the actual evidence                 This, needless to say,
of how it all worked                    is a great argument to
really did need to be                   adopt if you want to
explained, and I knew                   piss-off a libertarian.
that at the time...
                                        You think you're
Canadians were happy                    going to chain          And converting
about their                             doctors to their        the entire
government health                       stethoscopes?           world to one
care system, the                                                system isn't
British seemed less                     You make it too         a terribly
happy with theirs,                      annoying to be          likely
what were the                           a doctor, you're        scenario.
differences, what                       going to discover
were the odds an                        you've got a            Recently I
American system would                   shortage of doctors.    had some
end up with one or                                              dental work
the other?                                                      done while
                                                                in Bali.

      And if the entire world                                   Even with
      switched over to                                          an employee
      socialized medicine,                                      dental plan,
      what would the long term                                  it wasn't
      impact be on the state                                    worth doing
      of medical research?                                      in the US.

                                                                And as for
      There are a number of difficulties                        quality: it
      with that line of argument, not the                       would've been
      least of which is that the medical                        very easy
      companies don't like to pay for their                     for me to
      own research.  In point of fact, they                     find worse
      do things like get government funding                     dentists than
      to develop techniques and then they                       the one's
      demand (and typically get) ownership                      I went to
      of the "intellectual property" that                       in Bali,
      got developed with public money.                          and it would
                                                                be hard to
                                                                find better.


      Further: the incentives are
      perverted by the need to
      develop *new* drugs that           This is not just lefty
      you can charge a lot of            rhetoric: I've heard this
      money for... a research            complaint from people who
      into a new use for an              really do know something
      existing drug is hard to           about it, (I've heard it
      get funded.                        from more than one person
                                         on the PhD track in
                                         bio-sciences).


Another problem that I
knew about, is that the       (This is a thought
argument that government      of which my libertarian
subsidies subvert             sort-of-brethren seemed
incentives would also         ignorant... I think I
seem to imply to              saw it mentioned once in
insurance companies.          passing and scuttled
                              away from quickly...)
The idea is that if you've
got the government watching
your back, you'll be more
inclined to do risky
things, and you'll need
even more health care, and       Lefties like to sneer at this
government spending on it        sort of thing as an absurdity:
will have to climb through       who is going to go "Oh boy,
the roof to meet the             we've got universal health
increased demand.                care now, I'm going to run out
                                 and break my leg!  Or maybe
If insurance firms do            I'll try to get *lung cancer*,
a good job of distributing       it's *free* now!"
risk throughout the
population, they'll                      Obviously, that isn't
effectively shield                       quite the way it works,
individuals from the                     but human motivation
consequences of their                    is a strange subject,
actions, in much the same way            and the case can be
as government intervention.              made that when people
                                         *feel* safer they get  "Studies have
                                         more reckless.         shown" this,
                                                                if I remember
                                         This is supposedly     correctly. (But
                                         one of the reasons     how could they
                                         SUVs have safety       show it?)
                                         problems.  Despite
                                         their larger
                                         momentum, they
                                         don't appear to be
                                         any safer than
                                         smaller vehicles.
                                         Apparently when
                                         drivers feel
                                         invulnerable they
                                         drive a lot worse.





     It also can be famously difficult
     to get insurance companies to pay
     off on a claim... profit goes up
     the *less* you help your customers.    The way it seems to me
                                            at present: trying to
     In the mid-80s, I thought              get ahead of the game
     HMOs were a great idea:                by buying health
     they looked like a way                 insurance is like
     around the perverse                    trying to beat the
     incentives of the                      odds in a casino.
     insurance industry: by
     fusing together the                        You don't think the house
     insuring agency and the                    understands the odds
     health care services, you                  better than you do?
     might eliminate that
     conflict-of-interest.                          (There's a factoid
                                                    going around: two-
     In practice, HMOs have                         thirds of all
     the same, if not worse                         medical bankruptcies
     problems.  And while                           are people who had
     Kaiser-Permanente does                         health insurance.)
     indeed usually provide
     decent health care -- at
     the very least, they seem
     to understand preventative
     medicine, something the        Michael Moore commented
     rest of the US system          in passing that in spite
     doesn't seem to get --         of Kaiser being a "non-
     they definitely make you       profit", the execs make
     pay for it.                    "obscene" amounts of money
                                    in the form of salaries.

                                                It is indeed a problem with
                                                the "non-profit" as an
                                                institution.  They *may* be
                                                more resistant to corruption
                                                than a corporation, but
                                                they're not immune.

      There's another point
      that can be made:

      If you want to be               Michael Moore mentions
      healthy, the thing to           this one, too:
      do is to live in a
      healthy way -- not to             "... one way to beat the system,
      try to patch up the               at least this system, is that we
      problem later with                should all try to take a little
      expensive medical                 better care of ourselves ...
      proceedures.                      And so, I started eating fruits
                                        and vegetables. I don't know if
      American society doesn't          you've heard of these things,
      make it easy to do this.          but they come in different
      In principle, we have             colors and they're crunchy, and,
      access to all sorts of            you know, they're very good for
      great food and exercise,          you... "
      in practice the need to
      "keep up/get ahead" keeps         [ref]
      people running back and
      forth in cars,
      perpetually too busy to
      worry much about                 Despite various claims made
      nutrition, and with              about the "quality of life"
      little time to use that          and "standard of living" of
      gym membership.                  the United States-- we don't,
                                       in general live all that well.

                                          One advantage the Cubans
                                          have over us in health
                                          care is that the people
                                          there don't have any money.



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