Sunday, March 28, 2010

Milton Friedman in 1978:Market-Based Health Care



In 1978, at the Mayo Clinic, Milton Friedman discussed the free market solution to America's health care problems, and the more "general problem America faces - whether we are going to continue down the road to a completely collectivist society in every area, as we have been going for the past 40 years, or whether we are going to stake thought and halt that trend."

12 Comments:

At 3/28/2010 9:42 PM, Blogger Colin said...

Amen.

Related:

http://reason.com/archives/2009/08/27/the-evil-mongering-of-the-amer/print

And this:

http://4.bp.blogspot.com/_oKWxWOEilyQ/SpcwS-mTb8I/AAAAAAAABCc/Z0pZnHpLfdU/s1600-h/physicianincome.png

 
At 3/28/2010 10:41 PM, Blogger juandos said...

Hmmm, seemingly sound advice from Milton Friedman again...

Thanks for that...

I wonder what Mr. Friedman would've made of the following?

Congressional Progressives Try To Intimidate Companies Announcing Losses Because of Obamacare

From the Committee On Energy & Commerce: Chairman Henry A. Waxman and Subcommittee Chairman Bart Stupak today announced that the Subcommittee on Oversight and Investigations will hold a hearing on April 21, 2010, regarding claims by Caterpillar, Verizon, and Deere that provisions in the new health care reform law could adversely affect their company's ability to provide health insurance to their employees. These assertions appear to conflict with independent analyses, which show that the new law will expand coverage and bring down costs...

 
At 3/28/2010 11:54 PM, Anonymous Lyle said...

The change is the ending of a tax benefit that came about by the part D drug coverage. Actually once the donut hole in part D is done away with there is little reason left for companies to provide drug coverage to medicare recipients. Its sort of like the end of medicare advantage which gave some people better benefits than others that they did not pay for. The medicare advantage folks should pay for the additional services. Vision care insurance is more a discount scam than anything else as an eye exam costs $50. Dental insurance is backwards insurance, paying the little stuff but not the catastrophic stuff. The issue is that if the little stuff is neglected catastrophes will happen. It should really have a $1k deductable and a much higher limit. Since Medicare advantage typically provides these and they are the sort of thing the right opposes about the current medical care system they should oppose these insurances as well.

 
At 3/29/2010 12:01 AM, Blogger sethstorm said...


Hmmm, seemingly sound advice from Milton Friedman again...

Thanks for that...

I wonder what Mr. Friedman would've made of the following?

The issue with that it is hard to separate the ones that are making political moves versus just financial ones.

That is, they're making politically charged statements regarding offshore work diversions/expansions. As I see it, they're wanting to make some people pay(namely their US-based entities) as a part of a personal vendetta on Congress.


That is a bit too far and a measure I cannot support. If you're willing to put people's livelihoods at danger just to get them on your side, you are making the economy worse off. The only valid in-kind response to these is to thwart the adverse employment reactions (terminations, offshoring) inspired by the act.

The bill is quite bad(where I especially oppose the coverage mandate), but using your own employees to fulfill a personal/corporate vendetta against the government is worse.

 
At 3/29/2010 5:44 AM, Blogger juandos said...

"The bill is quite bad(where I especially oppose the coverage mandate), but using your own employees to fulfill a personal/corporate vendetta against the government is worse"...

Hmmm, well 'if' that is what's happening (and I'm pretty sure it isn't) then the employess need to leave these companies for greener more secure fields of employment...

What is patently obvious from where I sit is that the fools on the Hill and further on down Pennsylvania Ave have stepped into a pile of excrement of their own making and have dragged the American economy with them...

Now they wonder why there's blowback?

After all its not like said fools had any part in generating wealth and jobs...

 
At 3/29/2010 6:39 AM, Anonymous Anonymous said...

nice link, always love MF's clear thought process and sound rational thinking.

 
At 3/29/2010 7:06 AM, Blogger Ted said...

Friedman - what a brilliant man. His thoughts that the "public at large was more sophisticated" than to think government licensing and healthcare would work was spot on. Yet politicians thought otherwise and we have a collectivist healthcare plan nonetheless.

 
At 3/29/2010 9:01 AM, Anonymous Anthony said...

I argued this against three friends two years ago, nice to see Milton Friedman arguing it in 1978! The gut reaction people have to the idea of removing the requirement of licensing from various trades is to assume that there will be no licensing or accreditation once that restriction is eased. In fact the opposite would likely be the case; you would have a much higher competition of licensing organizations, each trying to balance a design to be the most reputable with a need to be accessible to enough young Physicians to make a profit.

 
At 3/29/2010 11:36 AM, Blogger sethstorm said...


Hmmm, well 'if' that is what's happening (and I'm pretty sure it isn't) then the employess need to leave these companies for greener more secure fields of employment...


The problem is that they're doing it with the full knowledge that most of them cannot. They aren't talking to the few that can, they're talking to the audience that is captive.

If they want to wage their own holy war, do it without holding jobs hostage. Let them provide their knowledge and ability, not get distracted by political maneuvering.

As for the topic at hand, the consequences are greater when quality(and cost) is cut.

 
At 3/29/2010 12:35 PM, Blogger Ron H. said...

>"I wonder what Mr. Friedman would've made of the following?"

I suspect that Mr. Friedman would conclude, with great sadness, that he had wasted his entire life attempting to enlighten people on the advantages of capitalism and free markets.

 
At 3/29/2010 1:35 PM, Blogger Ron H. said...

@Lyle

>"...there is little reason left for companies to provide drug coverage to medicare recipients."

Me: - Exactly. One giant leap toward single payer government medical coverage.

You: - Gee, that sounds like Medicare will cost MORE. How will that increased cost be paid for?

Me: - Well, one of the ways currently planned, is to take $500 Billion from the Medicare system.

You: - Wait just a minute! That doesn't make sense.

Me: - Bingo!


>...medicare advantage which gave some people better benefits than others that they did not pay for. The medicare advantage folks should pay for the additional services."

Don't worry, Lyle, they are paying for it. There is nothing unfair about these plans.

Medicare Advantage plans are private health care plans that INCLUDE Medicare benefits. The plans administer Medicare benefits for you, so you don't deal with Medicare directly. There is nothing free here. You get what you and/or your previous employer PAY for.

 
At 3/29/2010 1:48 PM, Blogger Ron H. said...

>"What is patently obvious from where I sit is that the fools on the Hill and further on down Pennsylvania Ave..."

CAUTION! Following this link will display a picture of three stooges that may cause you to lose your breakfast.

 

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