Changes

Governmental regulations require some of these disclosures (but not for abortion in New Jersey, which is one reason why New Jersey has more abortions than other states that do require full disclosures).  Mandatory disclosure about goods and services may be the best and only effective type of governmental regulation.  Food packaging now must state what the ingredients are and how much fat is contained.  The buyer doesn’t have to guess about this information.  The buyer must still beware, but can do so with more information than before.

Governmental regulations require some of these disclosures (but not for abortion in New Jersey, which is one reason why New Jersey has more abortions than other states that do require full disclosures).  Mandatory disclosure about goods and services may be the best and only effective type of governmental regulation.  Food packaging now must state what the ingredients are and how much fat is contained.  The buyer doesn’t have to guess about this information.  The buyer must still beware, but can do so with more information than before.

==Socialized Medicine==

==Example: the National Debate over Health Care==

The single biggest industry in the United States is health care, and it is sharply increasing in expenditures each year.  It has three major components: government-controlled (Medicare and Medicaid), insurance-controlled, and private pay or uninsured.  Each year, the demands for the government to take over the field grow louder, as insurance costs sky-rocket.

By far the single biggest industry in the United States is health care (medical care).  It represents a massive one-seventh of our entire economy, and it is sharply increasing in expenditures each year.  It has three major components: government-controlled (Medicare and Medicaid), insurance-controlled, and private pay or uninsured.  Many are unhappy with our system, yet it is in many ways the best in the world.  For example, the survival rate for the most prevalent form of cancer in men -- prostate cancer -- is 92% in the United States, but the survival rate for the same disease in England is only 51% under its government-controlled system.

Most other countries have some form of socialized medicine.  In the countries of Canada, North Korea and Cuba, it is actually illegal to pay money to a doctor simply to see you.  The government control there is so great that you can only see a doctor paid by the government in those countries.  In England, there is a two-tiered system: good care is provided to those who can afford to pay for it, and free but inferior care is provided by the government to those who cannot.

Most other countries have some form of government-controlled, or socialized, medicine.  In the countries of Canada, North Korea and Cuba, it is actually illegal to pay money to a doctor simply to see you.  The government control there is so great that you can only see a doctor paid by the government in those countries.  In England, there is a two-tiered system: good care is provided to those who can afford to pay for it, and free but inferior care is provided by the government to those who cannot.

The Canadian government destroyed free enterprise in medicine there, and took over the health care system.  The government now sets limits on wages and prices.  Lowering the wages and prices prevents supply from rising to satisfy demand.  Because demand is much greater than supply, patients have to wait a long time to see a doctor.  There is a lower survival rate from cancer in Canada than the United States because of the delays in diagnosis and treatment there.

If an elderly Canadian is vacationing in Florida and falls and breaks his hip, which is very painful, the Canadian system of health care will not even reimburse the patient for surgery at the nearest hospital.  Instead, the patient must fly back to Canada in excruciating pain to be operated on by a government-controlled doctor there.

If an elderly Canadian is vacationing in Florida and falls and breaks his hip, which is very painful, the Canadian system of health care will not even reimburse the patient for surgery at the nearest hospital.  Instead, the patient must fly back to Canada in excruciating pain to be operated on by a government-controlled doctor there.

The Canadian government took over the health care system and it is illegal to pay money to see a doctor.  Instead, someone with an illness is typically put on a waiting list and, depending on his age and likelihood of survival, may not see a doctor for months.  In some cases, patients pass away before they obtain the treatment they need.  The Canadian sets limits on wages and prices, and that causes shortages because there is always less supply when the price is lower.  (Look again at the shape of the supply curve:  at lower P, there is lower Q).  Lowering the wages and prices prevents supply from rising to satisfy demand.  What happens this is that demand is much greater than supply, patients have to wait a long time to see a doctor.  There is a lower survival rate from cancer in Canada than the United States because of the delays in diagnosis and treatment there.

 

This limiting of supply by government-set pricing causes what is known as "rationing".  More people want the service (a medical operation or treatment) than is available.  A waiting list is created to handle the surplus in demand over supply.  But when someone has a cancer growing inside of him, delay by being placed on a waiting list can be agonizing and deadly.  Quick treatment helps improve survival from cancer.  In the United States, where government does not set prices and there is not any rationing yet, the survival rate for five common forms of cancer is over 90%.  Thanks to the powerful benefits of the free market, the rate of survival continues to improve in the United States.

 

But in Scotland, the birthplace of Adam Smith and his theory of the invisible hand in 1776, the survival rate from cancer under government-controlled medicine has fallen to "the worst in Europe, lagging behind countries such as Poland and Slovenia. ... Cancer experts blamed ... long waiting lists for the poor results."<ref>http://www.highbeam.com/doc/1P2-12923478.html</ref>

In the United States, where health care still includes free enterprise, a patient can enter a doctor’s office or hospital at any time and receive services based on a promise to pay for them by check or cash.  Prices vary, and it is worth shopping around.  Immediate care always remains available at some price.

Unlike in most countries, a patient can enter a doctor’s office or hospital at any time in the United States and receive services based on a promise to pay for them by check or cash.  Prices vary, and it is worth shopping around.  Immediate care always remains available at some price.  There is an immediate care, cash-based doctors' office within a half-mile of our classroom.

Medical care in the United States has the highest survival rates for cancer and the most advanced procedures.  People from all over the world come to the United States to obtain the best care possible.  The life expectancy for a child born with cystic fibrosis in the United States is 37 years, but only 27 years in Ireland under its government-controlled (or nationalized) health care.

A free market in health care benefits children too.  The life expectancy for a child born with cystic fibrosis in the United States is 37 years, but only 27 years in Ireland under its government-controlled (or nationalized) health care.

In the summer 2009, the President Obama and the Democrats in control of Congress proposed a bill calling for a partial government takeover of health care.  Their proposal included a "public option," which would be a government-controlled health insurance program like Medicare and yet available to persons of all ages.  Their proposal includes many other controversial features, including:

Currently there is a massive national debate over the future of health care in America.  The Democratic proposal included a "public option," which would be a government-controlled health insurance program analogous to the Post Office.  Its proposal includes many other controversial features, including:

*a “public option” that will define which treatments will be allowed and which will not, with a goal of limiting costs.

*a “public option” that will define which treatments will be allowed and which will not, with a goal of limiting costs.

In America children having cystic fibrosis live an average of 37 years, but under nationalized health care in Ireland the life expectancy for children with this condition is only 27 years.  Government-run health care does not cover many special-needs conditions, and once everyone is in the government system there is not enough of a free market to fund proper care for special needs persons.

In America children having cystic fibrosis live an average of 37 years, but under nationalized health care in Ireland the life expectancy for children with this condition is only 27 years.  Government-run health care does not cover many special-needs conditions, and once everyone is in the government system there is not enough of a free market to fund proper care for special needs persons.

==Assignment==

==Assignment==