...Economic Wednesdays {Its friday}

Part 2

Let us carry on from Wednesday...

The issues I have with Obama's plan.

1. The public option is dumb. {Cool info on insurance}.

2. Universal health care isn't the best solution. But I have one! {oh boy}.

3. Its too government centered.

That's what we will address today...and more! {no that's probably it}.

1. The public option is dumb. We don't need another insurance company. We don't need a government run insurance company. We don't need another poorly run government business. A public option is the worst. First of all insurance is an odd mans game {like Pat}. More competition doesn't make lower premiums, it actually works the opposite way. More competition in the insurance industry actually drives up hospital prices and insurance prices.....

{say what!}. Stay with me.

Insurance companies want to pay hospitals less money and keep more. Hospitals want insurance companies to pay more and keep less. {easy}. So how do insurance companies keep prices down? Well, by saying they wont pay that high of prices. They tell the hospitals they will make their holders go to another hospital if they raise prices. But...insurance companies can only do this if they have enough holders to scare the hospitals. So they need to have what is called "Market Power", or an ability to affect the market. If there are a bunch of insurance companies about, like a new government run one, then the insurance companies wont have any market power and the hospitals will be able to charge whatever they want. The insurance companies will have to make up for this rise in prices and they will make their insurance premiums higher. So the public option is dumb. Theres needs to be more focus on hospital practices.

2. Here is where I say my plan for our health care debacle...

Regulate hospital prices. Get medicine back to the point where it runs like a normal market. How? Making people pay for their own health care. That's right. People will know, understand, and appreciate the cost of health care. We can effectively do this through health care programs where you put money into a pool {Employer run, maybe even a public run plan..whoa..}. You can then take money from this pool if you are sick and need health care. But you will know how much you are spending because if you can stay under how much you put in {or a certain amound, have not done the math yet}, you actually get a percentage {or all of it, but that's not really feasible} back. You get paid to stay healthy. Instead of not paying when you get sick. {Hey it could work}.

3. This whole thing is too government centered. Nuff said.

PEACE!

Pat

The Return of Economic Wednesdays

This weeks edition...

...Health Care. Whats up!

{Prices?}

Universal health care. Obama's plan. Insurance. Economics. The world. Just some of what we will briefly {yeah right...briefly..Pat has no idea} cover in today's (and Friday's) edition of "Economic Wednesdays".

I'm hoping to briefly give some explanation to whats going on and then give you more of my opinion than is probably necessary on this issue.

On second thought...there is going to be two parts {Pat's lazy so maybe even three parts} to this edition.

PART 1

An Intro

Universal health care, a public option (which is a not-for-profit insurance company run by the government) {Pat's least favorite part of this whole thing}, regulated insurance industry, and regulated prices {the only part Pat likes} are all a part of Obama's health care plan. He wants every person in America to have health care, sounds ideal, but there are many things you have to keep in mind.

Lets get started.

Since this is an economic blog. We will look at the issue from an economic view point. Lets look at health care as a viable product in the market system. It is a product. It has a price. There is a limited supply. There is competition. So like everything else, the market system should be able to regulate health care. The market should be able to find the right price (through supply and demand), create better products (competition, effort to increase profits), and distribute the right amount where it is needed (again...supply and demand). But NO! {over dramatic}. Health care doesn't work that way. For a couple of important reasons,

1. Most people don't have a limit on how much they will pay for health care. Even more so in a life or death situation. This effectively ruins the whole supply and demand aspect.

2. We don't even pay for our health care. Insurance does. This again ruins supply and demand laws. {Even if insurance is a good idea, having employers get it for you doesn't make sense}.

These two main reasons are why health care is all out of wack. They effectively ruin health care as a viable market activity. Yet people need health care. People want health care. But the market is not able to work out correct {reasonable} prices. So whats the solution?

Obama's solution is a universal health care plan. Give everyone health care for free. Tax them. Call it a day. Ok, not exactly but kinda. I don't think universal health care is the best solution. But it can work...

I think the real issues lie within the public option plan, current insurance industries, current hospital practices, current health care costs, and people's choices.

The next part will take a look at these issues from an economic view point....get pumped!

Pat

New Venue. {Same Crap}.

Welcome to 'The Blog of Pat' V 2.0 it is new and impr...well new. {Confidence is low on the improved part}. My confidence is high with this new blog {No its not, we just went over that}. I plan to write often and furiously {What does that even mean?}.

I hope everyone is buckled down for what may or may not happen.

This blog is written in 1st person and in 3rd person commentary {Lame}. When you see {} that's the 3rd person commentary, just to avoid confusion {Really didn't need explaining}.

In my first new blog {'First new'<---dumb sentence} I will begin with an intro from a good pal...enjoy...

"From the world-renowned author, Pat Breslin, comes his newest, most electrifying installment of the "Blog of Pat". Hold on to your hats, buckle your seat belts, and trim your nose hairs, because you are about to be taken on a wild ride. Through sweltering amazon jungles of sports ramblings to icy arctic caverns of economic jargon, where we will end up nobody knows, but I can promise you these two things: 1. you will be entertained. 2. there is a chance you might learn something.

Pat's unique writing style has been critically acclaimed by many critics. A wise man once wrote... in first person. Another wise man once wrote in third person. Pat has brilliantly combined the best of both worlds (legal issue: this was in no way a reference to Hannah Montana) and speaks in multiple persons, making him the third wise man and twice as wise as the first two wise men. Along with this astounding wisdom, he brings the incredible combination of wit and randomness that will cause you to experience a reading experience like no other experience.

I thank you for giving me the honor and privilege to introduce the epicness that follows. Without further ado... I give you the "Blog of Pat".

TJ Breslin (Brother of Pat)