When it comes to socialized medicine, i've heard it all.
"I shouldn't pay for other people's services", arch conservatives say.
Others who believe the government incompetent simply consider the implementation too complicated to be pulled off successfully or efficiently.
People for this respond with numerous good reasons for their position.
The divorce of medical coverage from jobs frees family workers to be more mobile and ambitious.
The prices under the current private system are abusively high.
There are 45+ million americans currently uninsured.
Then there are the many proposals which seek "middle of the road" solutions retaining private control.
I'm not here to talk about any of these reasons. I'm here to provide a hard economic analysis.
I present to you a
basic demand curve.This demand curve represents the typical capitalist "free" market at equilibrium price dictated by competition for the majority of buyers while seeking to maximize profits. (price as the product of supply and demand)
Specific to my case, however, is the proper interpretation of this curve so far as cost/benefit analysis or consumer surplus as it applies to the distribution of healthcare in such a market.
At the market price indicated by the horizontal line, the people in the portion above this line are those who are able to afford and thus receive healthcare/health insurance. The higher up you go, the less the burden and the greater the surplus is to the consumer.
What I want to draw your attention to though is the portion below this price line. In every private marketplace such a portion exists, and I'm sure by now you can guess it represents people who can't afford it, and are thus not served. While this model is simplified, other factors come into play on this regard, such as health screenings singling people out for outrageously higher rates or outright exclusion. The point I'm making here is
no matter what scheme you come up with to try to make healthcare universally obtainable, any which involve unregulated private markets will always have this "unserved" portion of the marketEvery essential factor to first world lifestyle requires socialization or very stiff regulation to assure services are provided universally at the minimum possible price (or free). This includes water, electricity, phone lines, roads, shelter(welfare, unemployment, and housing subsidies), and food (food stamps).
Given this, the only relevant question we should be asking when deciding if socialized medicine should be introduced is "does basic medical care qualify as essential for a first world lifestyle".
If your answer is yes, then it's your duty to assure medical coverage is obtainable by every man, woman, and child sane enough to desire it. This means removing the "free market" forces which always result in a group of people unserved; this means socializing healthcare, either by direct government intervention/takeover, or by the stiff regulations similar to those requiring universal phone services without location-based price discrimination.
Because it sets nominal amounts with no relative bearing on the cost of medical care, medicaid is failing to cut it by a long shot.