Sign Me Up Wage Web Warfare Against The Liberal Establishment
Subscribe To The GrassTopsUSA Action Alert

Socialized Healthcare: When Money Trumps Life
GrassTopsUSA Exclusive Commentary
By Gennady Stolyarov II
12-20-07 

Proponents of socialized healthcare like to characterize its private provision as callous and uncaring -- prioritizing the patients’ money over their lives and permitting those without money to suffer and die.

However, this is blatantly untrue, and the argument against socialized healthcare goes much further than this. Socialized healthcare is guilty of the very fault that private healthcare is alleged to have. Under government healthcare, government providers prioritize their own cost savings above the lives and well-being of their patients.

In a private healthcare system with no government interference, anyone needing healthcare would receive it. Those unable to pay could rely on the services of private charities and charitable doctors.  In small towns, doctors are able to serve the poorest patients by engaging in voluntary price discrimination whereby they charge wealthier patients higher prices while the poorer ones pay what they can. This practice is necessary in order that small-town doctors can stay in business and serve all patients in need -- but government antitrust laws have frequently cracked down on this practice. The free market has numerous creative solutions to ensure that for all those who demand a particular good or service there will be a sufficient supply of that good or service.

But with a sole government provider of healthcare, the incentives of both the patients and the providers change. The patients -- having paid their taxes -- are seemingly entitled by law to unlimited healthcare services, and they consider themselves so entitled. While in a private system, patients would have incentives to keep costs down by pursuing only necessary medical services, patients in a socialized system would often be trying to get as much healthcare as possible for the fixed amount that they already paid in taxes. With everyone demanding the maximum on healthcare, government supply would naturally be insufficient to meet the demand. Thus, what began as a system based on the premise that everyone has a “right” to healthcare becomes in fact a system of rationed care, where the government decides who will get treated and who will not. Hence, you have people waiting months for care as in the socialized healthcare systems of Great Britain and Canada.

Under a socialized system, a patient with a life-threatening illness would be placed on a waiting list -- usually for several months -- just for an initial visit. This government system has prioritized its money over actual healthcare. This prioritization is not the government officials being malicious; rather, it is an economic necessity given the incentives created by socialized medicine. After all, there are plenty of people with life-threatening illnesses, who may already have waited a long period of time to get treatment, and the government only has so much money to spend. As the government is a monopoly provider of healthcare, patients have no other recourse but to wait -- even if they could afford to pay the full cost of private treatment. Many Canadian patients currently use the still partially private American health care system as a safety valve in such cases. But if the United States government foolishly nationalizes healthcare, this safety valve would be gone, and both countries’ healthcare systems would be in crisis.  

Contrast this with what would happen in a fully private system. A patient with cancer would immediately get a diagnosis and treatment from one of many for-profit healthcare providers if he could afford to pay.  If he could not afford to pay, he could still benefit from the generosity of many private charities and price-discriminating doctors. Furthermore, in a private system, the rate of medical progress is tremendously high, leading to increasingly effective treatments and cures for life-threatening illnesses. In a socialized system, there is no incentive for individuals to innovate; indeed, highly bureaucratized government healthcare discourages innovation, claiming it too costly and failing to recognize the possible long-term benefits. After all, new drugs and treatment methods have a high initial likelihood of failure – and an already strained socialized healthcare system will be highly resistant to bearing those costs. But in a free market, private individuals can choose to personally bear the risk of their possibly failing; they will only choose to do this, however, if they are assured that they can profit and their innovations succeed.

In a private healthcare system, I believe that the healthcare providers would find ways to save individuals’ lives at costs that those individuals could afford. With government healthcare, however, an inevitable tradeoff between money and lives would exist. Only where genuine consumer choice is available can such a tradeoff be eliminated.

 

   

Gennady Stolyarov II is Editor-in-Chief of The Rational Argumentator, a magazine championing the principles or Reason, Rights, and Progress. His works have been published by Le Quebecois Libre, Enter Stage Right Magazine, the Ludwig von Mises Institute, Rebirth of Reason, and other organizations. Mr. Stolyarov can be contacted at gennadystolyarovii@yahoo.com.


GrassTopsUSA is a 501c4 not-for-profit organization.  Contributions are not tax deductible.

Copyright GrasstopsUSA.com 2007