The free market is the best economic system we’ve been able to
come up with so far. But it’s a mistake to believe that it’s a perfect
system. One commentator believes it is a system bestowed upon us by God
himself. What an idiot. The free market system is far from perfect,
and it is important for us to continue to study it so that its limitations can
be identified thereby contributing to a solution to its weaknesses. One
area worthy of looking into is health care. There are various aspects of
health care that we can consider.
An economic model is a method of allocating society’s
resources. Take Snickers Bars as an example: a state controlled economy
would dictate how many Snickers Bars are produced and who gets them. In a
free market economy the producer would decide how many Snickers Bars to produce
based on their estimate of the market. If inventory builds up, then they
stop producing Snickers Bars and maybe produce something else like Almond
Joys. If they’re flying off the shelves of stores, then they might
increase production, add another shift or even build another manufacturing
plant. Consumers would determine the distribution. If someone wants a
Snickers Bar, then they can use their money to buy a Snickers Bar. If
someone would rather have the Almond Joy, then they don’t buy a Snickers
Bar. Someone with no money gets no Snickers Bar but is encouraged to work
to make enough money to buy said Snickers Bar. It’s a pretty good system
of distribution. He who wants a Snickers Bar pretty much gets a Snickers
Bar. It works pretty good for Snickers Bars.
But is a purely free market approach the best method of
distributing health care? Is it acceptable that wealthy people receive
health care and the poor do not? First, let’s consider the distribution of
health care. Who gets health care? In a free market system those that
get health care are those that can afford it. In the United States with
various state run Medicaid programs and Medicare and employer provided
insurance not to mention more laws and regulations than one can reasonably
digest, the distribution of health care in the United States hardly represents
a free market system. The result is that health care is more evenly
distributed in the United States. Most poor inner city infants can get
emergency treatment if needed.
But consider the worldwide distribution of health care
providers. To do this you don’t even have to look very far: my former
primary care physician is from Bolivia, my current primary care physician is
from the Philippines, my dentist is from Cambodia, one of my students is a
certified nursing assistant from El Salvador, etc. There are countless
medical professionals trained in poor countries who come to the United States
to practice because the money is so much better. This is good for the
United States. However, it is not good for the poor
countries. Bolivia has one less doctor. Cambodia has one less dentist
to treat the impoverished people of that beautiful country.
The question is whether this is the best distribution of society’s
resources. Some may dare to submit that this is the best distribution of
resources. I curse them. It is outrageous that a third world country
like the Philippines use its limited resources to educate and train a person to
be a doctor and then have that doctor leave and go to a rich country to
practice. It’s good for the doctor. It’s good for me. But it is
not good for the people that remain in the Philippines. I submit that this
is not the most efficient distribution of health care resources.
What about research and development? The free market model
dictates that private interests will invest in research and development with
the intention of creating a product that can be sold at a profit that over time
exceeds the cost of the research and development. Companies have invested
in developing and producing medicines for high blood pressure, high
cholesterol, diabetes and erectile dysfunction. Former Vice President Dick
Cheney walks around with a heart pump. Artificial knees, hips and other
body parts. [Last summer I was visiting my mom. We were at the
pool. We were talking about health care, and I mentioned that they’ve got
a pill for almost anything that ails you. My mom declared loud enough for
everyone to hear that they haven’t yet developed a pill that will cure her
diarrhea. Hold on, mom. It’s coming.] Not only have that, but
drug companies produce these drugs in enough quantities so that everyone who
can pay for it can had it.
But few private sector resources are devoted to drugs to fight
malaria and dengue and other maladies that are unique to third world
countries. Again the question is whether this is the best method of
distribution of medical research. Some may submit that yes, the free
market economic model is the best method of distribution of medical research
that society has come up with to date. I question whether investment in
cosmetic surgery and cholesterol drugs for those who have eaten cheeseburgers
and French fries their entire lives is better than investing in producing and
distributing drugs for malaria.
How can it be made better? Examples already
exist. Government investment in research and development of treatment of
AIDS has benefited untold numbers of AIDS patients in third world
countries. Former President George W. Bush is rarely given praise for his
initiative to fight AIDS in Africa. One estimate claimed that he may have
saved as many as a million lives.
Another example is philanthropy. Many doctors donate their
time, and many hospitals donate resources to provide health care to the poor in
third world countries. Doctors Without Borders is a fine organization the
provides medical treatment to people who otherwise would receive none under the
free market. Dennis Quaid is a good example of an individual. He has
escorted several patients from Central America to the United States and funded
needed surgery. He also funded and helped establish the Ruth Paz Medical
Center in San Pedro Sula, Honduras.
Another example is Cuba and its production of thousands of
doctors. Medical schools in Cuba train doctors from both Cuba and other
developing countries to practice in medicine with the intention that these
doctors will treat patients who otherwise could not afford
treatment. Cuban doctors and Cuban trained doctors can be found in various
countries from Latin America to Africa.
The free market economic model is the best economic model that we
have. However, it is not the most efficient method of distributing health
care. That doesn’t mean that it should be abandoned.
No comments:
Post a Comment