Did you ever wonder why the inflation rates in health care and public education are higher than general inflation? Simple answer is that some one other than the patient or student is paying the bill. In some cases this is called welfare in others loans and in still others grants. In all cases some one else is paying.
Who is that some one else? YOU, OF COURSE! Taxpayers are paying but not consuming. So who is checking to see that health and education services are delivered efficiently? NO ONE!
Here’s the data comparing employment costs: All workers 2005=100, December 2009=111.2, 2.8% per year. Health care hospitals 2005=100, December 2009=113.3. 3.3% per year. Education services 2005=100, December 2009=113.1, 3.3 per year. See the Bureau of Labor Statistics report here.
As in the case with other third party payers, the real consumers, the patients and the students, don’t shop options and question prices and charges. The providers know this and know with certainty that they can charge what the “market” will bear. There really is no true market in the sense of competitive pricing. Where public employee unions are involved the situation is exacerbated. Salaries and benefits are raised by the politicians who are supported by the unions whose members’ salaries and benefits are raised. A vicious and unholy alliance!
So, in the case of Obamacare, the unions elect the Democrats, the Democrats raise their salaries, wages and benefits creating deficit spending and unfunded liabilities, the Democrats then claim we have a problem with the costs of healthcare so they propose to exacerbate that problem with Obamacare adding to the deficits, national debt and unfunded liabilities. Hell of a deal for the taxpayers! And a worse deal for their grandchildren!
Tom Motherway