This article describes what happens when a nation does not provide insurance to families. The burden is shifted from government to the families. One of the consequences is that population growth in Russia and several countries in Europe is blow the replacement rate. They are experiencing a rapid depopulation of their nations. Families are unable to work and provide for the support of children.
In the US the GOP is leading the attack on entitlements. They argue that our obligations to future generations are unfunded and that reform is necessary. Paul Ryan's plan to reduce government funding for healthcare shifts the cost of healthcare price inflation to individuals. His plan provides vouchers that can be used to purchase health insurance. The value of the vouchers would increase with the general level of inflation. Since healthcare prices increase at twice the rate of general inflation, the cost is shifted to individuals.
The article points out a problem that is not generally considered in discussions about cutting government funding for healthcare and others in need. These costs must be absorbed elsewhere. Most families are unable to increase their savings enough to fund the cost of healthcare. and to provide support for their parents when they are unable to work. They must either reduce their spending on current consumption or let the market determine the outcome. The super rich, who are pushing for tax cuts and a reduction in social welfare, do not have to cut their consumption of healthcare, education or fund their retirements.
No comments:
Post a Comment