Newsgroups: soc.culture.usa
Subject: Re: Health Care & Jobs (Disappearing) was: Re: Stupidity of Am. Masses
From: demon@desire.wright.edu (Stupendous Man)
Date: 8 Sep 92 16:26:16 EST
Followup-To: soc.culture.usa
Distribution: world
Organization: Demonic Possesions, Inc.
Summary: Jobs should go to where it is cheapest to make the product

In article <1992Sep5.200451.24729@squid.tram.com>, patt@squid.tram.com (Patt Bromberger) writes:
> reposted from misc.handicap:
...
> Another sign in California that the "cost" of a national health
> insurance system may be less than the "cost" of the current
> system.  GM announced today that they are closing a 45-year old
> plant in Van Nuys, employing 2500 people, because it is more
> efficient and cost effective to move the manufacturing to its
> plant in Quebec.

	The below does not prove any such thing.  What it does prove is that
when the government subsidizes an activity, the corporation(s) are taken out of
the loop.  We, the taxpayers, still have to pay.

> Despite the fact that Canadian wages tend to be somewhat higher
> than the US, and taxes may be somewhat higher, one of the
> reasons that the Canadian plants are able to be competitive is
> the fact that the company does not have to pay health insurance
> premiums for the employees.  This was cited by the GM executives
> as a significant factor in the move.  This was also apparently a
> factor in the decision to keep two other Ontario GM plants open
> while closing others.
> 
> In addition, GM announced that they would not longer pay health
> insurance premiums for its employees, other than those protected
> by a collective agreement.

	In other words: salaried employees have to pay.  Hourly workers are not
affected.

> In 1991 when it was making decisions about its plants, the
> company did a survey which showed a great disparity between the
> health care costs in different US cities. They said that health
> costs for workers in Youngstown, Ohio were twice the medical
> bills in Grand Rapids Michigan, 200 miles away.  The costs in
> Ohio added $1.00 per hour to labour costs.  GM in fact told the
> Youngstown plant that if these costs were not controlled it may
> result in the plant closing.  On average, health insurance costs
> $3100 per employee.

	To prove your point, you would need to show that the government can do
it cheaper.  Don't point to Canada.  Canada is not the US.

> According to a Fortune magazine article in July 1991,medical
> bills for US companies grew at twice the rate of inflation in
> 1989. That amount, $173 billion, equalled 100% of their net
> profits.
>
> ** sigh **

	Sigh indeed.  This points out the real problem: there is no longer any
relation between the supply/demand for health care and it's cost.  Patients no
longer directly pay the doctors.  There is no feedback on costs.  Nationalizing
health care, or moving to government supply of health insurance will not fix
this situation, as even the Canadians are finding out.

	When *any* business finds out that the customers have no idea what the
prices are, they will rise, and rise, and rise.

	Just look at military procurement for another example.  No one was
responsible for the *cost*.  So no one objected when part 124-agsd-135 (a bolt)
cost $523.12.

	The hospital send you your bill, you shake your head over the total,
say "good thing Blue Cross pays for this" and write a check of the deductable
(if any).

	So if food only cost 20% of the real price, how much would we buy? 
Housing?  Travel?

	I have a great idea!  Let's let the government run *everything*.  Then
since we're not paying for anything, it will all be free!!!!

	As ludicrous as the above is, many people use it to campaign for "free"
health care.  Government is not free.  If you want higher taxes, the government
supply is the way to go.  But don't complain when your service is only
delivered Monday-Saturday...Monday-Friday...Monday-Tues-Thurs...Monday.  For
"only" an extra $1000...$2000...$4000...

Brett                                                      
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