Stanley Feld MD, FACP, MACE
Socialism does not work!
Intellectually, socialism is attractive and easy to understand.
Simple Definition of Socialism
- “: a way of organizing a society in which major industries are owned and controlled by the government rather than by individual people and companies.”
Full Definition of socialism
- “1 : any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods
- 2 a : a system of society or group living in which there is no private property b : a system or condition of society in which the means of production are owned and controlled by the state
- 3 : a stage of society in Marxist theory transitional between capitalism and communism and distinguished by unequal distribution of goods and pay according to work done.”
It would be nice to have the government tend to all our needs equally.
Everything would be free to the public.
- Not one would need to “get ahead.”
- No one would have special privilege.
- Everyone would live the same housing.
- No one would have to have responsibility for anything.
- No one would have incentive to be creative or inventive.
- No one would need to take the initiative to be innovative and create new good and services.
The government would then run out of money because people would have little to be innovative about or have any incentive to work hard to provide for their family.
People would have little incentive to produce income that would generate taxes for government to spend on goods and services to support the benefits offered the people in a socialistic system.
The government would have to borrow more money from others because the people would not produce enough income to tax.
What lender would be inclined to lend money to a country that could not pay it back?
The socialistic system would then become unsustainable and collapse.
This explanation might be considered by some to be a fifth grade explanation of socialism. It is simple to understand but direct and to the point.
America is headed in that direction. The present healthcare system as is unsustainable.
Government cannot spend other peoples’ money when the money is not there.
In America the federal government and state governments keep making the same mistakes over and over again.
Obamacare’s regulations caused 335,000 healthcare insurance policies to be cancelled in Colorado. In 2010 Obamacare made these Coloradan healthcare insurance policies illegal.
Obamacare has failed for the citizens of Colorado.
The state’s politicians tried to fix Obamacare by borrowing hundreds of millions of dollars from the federal government to set up Colorado HealthOP the state’s co-op health insurance plan.
The goal was to stimulate competition among insurance companies by providing lower priced insurance. The co-op is in debt to the federal government for hundreds of millions of dollars.
Colorado HealthOP became the largest insurer on a state health insurance exchange in Colorado.
Colorado HealthOp lost so much money that it could not borrow any more. The Colorado HealthOp had to shut down in October 2015 leaving the federal government to absorb its loan to the state of Colorado.
The closure of Colorado HealthOP left 80,000 Coloradans without health insurance coverage for 2016.
The other state insurance plans are increasing premiums an average of 11.7% to stay above water according to state calculations.
It has made premiums and deductibles too expensive for many of these uninsured 80,000 people.
Coloradans are tired of all the insurance changes, increasing prices and uncertainty. They want something new.
The knee jerk reaction is to change to something easy to understand. A socialistic single party payer system (SPPS) is the easiest to understand. Let the state provide healthcare insurance to everyone. Healthcare would be universal and free to the public.
The problem is nothing is free. The advocates in Colorado (progressives and liberals) are mobilizing to replace Obamacare with either the Canadian or United Kingdom healthcare system.
However, both of these nations healthcare systems are unsustainable. They are failing because of the cost, inefficiency, long wait times for diagnosis and treatment and lack of services despite the governments claims and some of the consumers’ perceptions.
The progressive advocates accumulated 100,000 Coloradans’ signatures. These progressive democrats have gotten a single party payer (SPPS) proposal on the 2016 ballot.
“ColoradoCare,” as it is being called, would replace private insurance with health care funded completely by the government, substituting higher taxes for premiums.
The conservatives in Colorado do not have a proposal to replace Obamacare to put on the ballot in 2016. They have been asleep at the switch.
Conservatives and libertarians have been sleeping at the switch in every state except Vermont.
Conservatives and libertarians did nothing in Vermont. Peter Shumlin was elected governor to institute a SPPS.
The Vermont experiment with a single party payer system has been a disaster already.
Jonathan Gruber, who designed Obamacare, and thinks Americans are stupid, along with William Hsiao, who thinks price controls work designed the system for Vermont.
“Helping design the system was advisers such as Jonathan Gruber, the MIT economist often described as the architect of Obamacare, and William Hsiao, the Harvard economist who developed the Medicare price controls that are driving up prices around the country.”
Vermont played right into President Obama’s goal of creating a single party payer system (SPPS). Colorado is trying to follow the same path to disaster.
The Obama administration provided Vermont with many millions of dollars in federal grants in order to accomplish President Obama’s dream of a single party payer healthcare system.
In order to pay for Vermont’s SPPS the state proposed an 11.5% payroll tax on businesses, which would have taken the total payroll-tax burden to nearly 20%.
Vermont contemplated a new state income tax of 9.5% to pay for the SPPS on top of the existing 3.55-8.95% individual state tax.
The state budget would need to be doubled with the SPPS, therefore taxes would need to be doubled.
Even with these increases in taxes the plan would be deep in the red in three to five years.
Gov. Shumlin (Vermont) was elected to create a SPPS. In 2014 he abandoned single payer system he was about to create because of its effect on the state economy.
Gov. Peter Shumlin woke up to the impending disaster, “The potential economic disruption and risks,” he remarked, “would be too great to small businesses, working families and the state’s economy.”
Ben and Jerry might even flee the state and move to Texas because of the high taxes and economic disruption.
The people of Colorado should look carefully at Vermont’s mistake. The Denver Post has already predicted tax increases that would drive business and job growth out of the state.
Colorado also has a large VA Hospital System. In April 2015 the Colorado Springs Gazette reported that four of Colorado’s VA facilities were among the 10-worst in terms of wait times of all VA hospitals.
The Veterans Affairs hospital system is a pure a single-payer system.
“ A September report by the agency’s inspector general supports the conclusion that thousands of veterans may have died while waiting for the care they needed, although shoddy record-keeping made it impossible to know for sure.”
All Coloradans have to look at is their state’s VA SPPS that cannot take care of the 400,000 veterans in the state. Why should Coloradans expect a SPPS would work for five (5) million residents it their state?
What have conservatives and liberations offered as a substitute for the failed Obamacare experiment?
Nothing!
Leaders should start looking at My Ideal Medical Savings Account system that would put consumers in charge of their health and healthcare dollars.
I wish everyone a HAPPY AND HEALTHY HOLIDAY SEASON
The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.
All Rights Reserved © 2006 – 2015 “Repairing The Healthcare System” Stanley Feld M.D.,FACP,MACE
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