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Old 07-05-2004, 01:49 AM
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Ok, you do make some good points. I do not mean any disrespect, but what I refer to are basic proven economic princples.

First, service sector costs (healthcare, lawyers , education) are basically highly educated groups of people which require long terms of schooling. Now when joe-twelvepack gets a job at the local factory right out of high school, we agree that he should not be making as much as the the lawyer or the doctor that just shelled out a couple hundred grand on their education. Now as productivity rises at that factory, their compensation goes up. (Long term these trends are true, a factory worker today makes a lot more than 20-30 years ago). However how many more patients can a doctor see per day? Their productivity can not really increase. However we can not have a society where doctors make less than factory workers, no one would be doctors then. Therefore healthcare costs must rise to stay inline with manufacturing costs and attract people to invest in becoming a doctor.

Inflation is the result of a purchasing power decline as producers are able to produce more goods. Slight inflation suggests economic growth, and is a natural part of a healthy economy. Also inflation is the rise in the real cost of ALL goods. I just meant that as a justification for the first question posed about why milk and eggs cost more today.

Finally, I agree that the frivolous law suits are a drain on the economy. But I do not think that legal reform would really change the cost of healthcare. Insurance companies and healthcare firms just use lawsuits as a scapegoat for charging what they want for healthcare costs. In a practically sense I would blame the inefficiencies of the major HMOs and public ignorance to how they operate as a much more realistic factor as to why healthcare costs are so unaffordable to the average american.

Then again you can chalk that up to the way american's think. "Why should I pay for someone else to get healthcare?" is what I hear over and over again about the disagreement for government supported healthcare programs. Well this is what you get, it is controlled by private companies responsible for generating profits. They dont really care about your well being, if anything they want you sicker, it makes them more money. Any way this is a totally differant discussion for another forum.

Prices will climb ever higher...
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