If businesses were losing money due to a loss of worker productivity, they would fund the healthcare. They will do whatever makes them more money. The cost of treatment exceeds the loss incurred.
If businesses were able to do whatever it could to make money, that doesn't mean it's going to be good for workers. Why do you think we have child labor laws? It's more profitable to have children working in certian fields but that doesn't mean we allow it. Why do we have environment protection laws? China doesn't. Hundreds of thousands of people have gotten sick from drinking contaminated water because they were not aware that the company dumped pollutants into their rivers. Children are born with defects which have lasting consequences for the country. Business may participate in behaviour which is good for its short term profits, but it may be bad long term, or it may be bad for society as a whole. I don't believe that the free market is a pancrea for our problems.
I don't know where you get your statistics on "people optimization." Please cite me any evidence that spending money on poor people creates better productivity than leaving it in the hands of those who earn it. I am NOT criticizing helping the poor. I just take issue with this argument. Charity is also something that has a proper amount, and in a free market, there is plenty of charity service. In the US, there is plenty of charity now, and I see no evidence that we are about to stop helping people without government interference.
What I mean is that we should try to maximize potential for a population. A good teacher makes an effort to help the students who don't participate in class because they may have the potential to give back just as much as the "regular" students. I want a society which maximizes
equal opportunity for all students. What I mean by people optimization is not income redistribution, but opportunity redistribution.
My father was a poor farm kid who had no chance of goingto school. Back when he was a kid living in China, the gov't provided free education to all who can do well on their entrance exam. My dad could never afford the tuition which was being charged before education was made free. But he was a smart kid, and he got a free ride from elementary school through college. He's been a research scientist for the lats 30 years now. That's what I mean by people optimization, your pool of smart, ambitious people just increases when you give everyone an equal start in life. Why limit the poor of college applicants to middle class students? Why not prepare students from poor backgrounds for that as well? And let the smartest person win and not only the person who had all the opportunities through sheer luck of birth?
Right now, in China, with the lack of funding for education (not siphoning it off, gov't just stopped funding for much of it), many kids from the same area he grew up in will never see the inside of teh school. Why? It's not profitable right now for companies to erect free local schools. Charity work is abundent in China, but it's not nearly enough to alleviate the poverty there.
If we shuttle money into programs which helps kids to leave poverty, then that person will become a productive citizen. The money invested into these types of programs helps the poor, but it also helps society overall. That's what I mean by optimizing people.
I see no evidence that any country has successfully pushed back poverty with ONLY charity. Charity is sporadic. That's the problem. Come Christmas time, everyone wants to help. The rest of the year? It's sporadic. I don't agree with the current welfare system but I also don't believe we can depend on charity. Charity will depend on people's whim. If charity was so good, people would all be out begging on the streets to pay their rent, buy their groceries.
Your example of China is flawed. The communist government has kept such a strong grip on its population that the richest, largerst, and most powerful nation in the region has lagged INCREDIBLY far behind all of its more economically open counterparts over the last 50 years. If the government stymies its economy, then takes its confiscated loot and pays for things that are not healthcare, of course healthcare will be poor. Of course, in a free market, with a thriving economy, healthcare would improve significantly without interference by the government. Healthcare is a desired commodity, and it would be funded by a free market at its true value in a free market.
interference.
Actually, healthcare was also poor before the communist came into power. It improved in the 50's and 60's with numerous campaigns to focus on prevention. Mandatory and free vaccinations cut the infant mortality rate in the country (my grandmother's first two children died before free vaccination were made available). "Barefoot doctors" was sent to the countryside to provide rural healthcare. My mother still remembers the massive health campaigns in her childhood.
Of course, most peple still had bad healthcare, but most people had *some* form of it. The government did not take the healthcare profit and channeled it elsewhere,
the government has stopped funding for most of its cost.
And I shoudl remind you that China has one of the fastest growing economies in the world with a 9% growth rate for the last decade or so. But it is this free market that is driving the healthcare crisis in China. Because of the HUGE disparity between rich and poor (one of the biggest in the world), there is a large underclass that much get any healthcare while a smaller elite can get pretty decent one.
Free market says that businesses can still practice without providing healthcare to people. If someone is sick, there's always someone healthy to take their place. That can become a public health hazard when a billion people becomes the feeding ground for all kinds of diseases.
I never said healthcare isn't a desired commodity in China, I'm saying that many people can't afford it. It's not profitable because labor is abundant and cheap. You are assuming that healthcare would be funded by a free market simply because companies would value their workers so much, but that is not true in most jobs, at least not at the stage of industralization in China.
That's why funding for education and healthcare has to be taken up by the gov't. It's not profitable to a company to fund for free vaccinations or the education of elementary in a country with such cheap, abundant labor. But the country will pay for the lack of education and healthcare in the future.
AIDS is already a huge in China precisely because of the lack of gov't infrastructure to contain it. It starts out with addicts and no company will want to fund for their rehabilitation, but once it spreads to the general populace, and the disease starts affecting workers, it's too late for companies to intervene even if they wanted to. Diseases do not follow the business model and avoid the productive workers.
Education works in similar fashion. Most companies want an educated workforce, but few are going to fund free elementary education, which is critical for future budding scholars and inventors. Some things are just too longterm, too foundational, to trust the free market to disseminate.
The gov't s job is to look long term, and to investment in things that will profit the society. This may or may not coincide with the free market and where the market does not apply, the gov't steps in. Research is a good example of such a relationship (however problematic). My parents worked in basic research at university for 20 years and then made the jump to BigPharm. They do far more groundwork in basic research than they are doing in BigPharm, but BigPharm will answer the demand for current drugs while using the basic research that was funded by the government to do so. The gov't gets advance in research by funding the ground research and let the market fund the rest. Basic research is typically unprofitably because no patent can be extracted from it but it is well worth the financial investment because much of it leds to brilliant discoveries in the future.
As I said before, resources are scarce. Scarce doesn't mean rare, but it does mean not infinite. We repeatedly talk about how the boomers are going to bankrupt Medicare, how physician's reimbursements are dropping as demand rises, and how healthcare is approaching 20% of GDP. We are worried about these things because healthcare doesn't exist infinitely. It must be rationed in some way, and as with all things, the greatest efficiency takes place in a free market. In time, technology will improve healthcare in line with demand, but this also requires an investment of scarce economic resources, and we can all agree that 100% of GDP being spent on healthcare research would be bad for everyone. Thus, the market is necessary to determing optimal spending on this commodity.
I agree with most of what you say here. Healthcare is a scarace commodity, but I belive the best way to MAXIMIZE it is to focus on preventive care, and to give the poor this preventive care, and let the chips fall as it may for everything else.
I want to see multi tiered healthcare system where people cna get the most basic cares to prevent conditions from spreading or getting worse. I think that the rich should have better care if they can afford it. Right now, our system is not geared towards that ideal of focusing on preventive medicine. Instead, it's lopsided in that we give emergency and expensive care to those that are the neediest when that money can be spent on helping more people with less serious conditions.
I don't agree that the free market will determine the best care, because disease doesn't discriminate against who will be the least or most productive citizen. Sure, Bill Gates, given his productivity level, will probably be a good investment to save, but what about the budding scientist? Or the future Mozart? Do you believe that those who can't afford healthcare are just unproductive members of society? I guess I don't agree. I think everyone should be given basic care and that they will have to 'earn' their way into the top of the line care. This is unpopular b/c it puts a price on people's head, but I think, in the long run, this will maximize coverage for everyone while not bankrupting society.