Gonz,
Ive broken your post into 4 main points to try to consolidate my responses. Ill summarize them (though I realize thats dangerous).
Yes, it's dangerous...I feel some of the summaries miss the mark, but this might be due to how I wrote my thoughts in the first place.
It may be helpful though, especially because it highlighted that we have been straying away from the main topic. I'll try to reign it in a little:
Summary: Government organizations can be run efficiently if the proper incentives are in place.
This is essentially one of the cores of my argument, so I will focus on it.
Summary: Justice is determined by need and costs should be shared proportionately.
I'd like to leave this one by the wayside, but I think it is important for me to address, primarily due to the fact that one of my prime concerns with regards to healthcare is the notion of fairness.
Summary: Each person is in a position to determine the health and education everyone else should get.
? not what I meant...I'll try leaving this one aside...
Summary: Advertising and profit makes private corporations as inefficient as government.
I will try to largely leave this one aside too- My main concern was to illustrate the first point summarized above. Namely, that Government run organizations can run efficiently.
We can both run around in circles citing examples of well and poorly run government and private services.
Ok, lets start with the first notion that government can be structured to be more efficient. You give the example of accountability (like, elections for example) as a way to increase efficiency. You say performance reviews and requirements can help minimize losses.
Voting is a poor substitute for the free market.
Agreed- that's why I said that there was need for accountability BEYOND voting. For instance, if people in government departments do not perform/ are inefficient, etc. they should be fired. There should be real accountability.
In the case of Australia Post (yes, I'm pulling it out yet again), it is run with a lot of accountability for people that run it and work in it.
But while people often approach voting in a similar way to purchasing a product, research quite is difficult with government policy because of the number of variables. This means that few people choose to investigate.
👍 I think it tends to be worse: I feel that most people don't even bother to look into policies/ political ideologies etc.
Ask the average person to differentiate the core values of left and right wing politicians, and they would likely be at a loss.
At the end of the day, an election seems to get reduced to a popularity contest.
Mind you, these days most decisions are made on pragmatics rather than ideologies, providing competent short term solutions (coincidental to their terms in office), but little vision and leadership for the future. Sorry, straying into different subject again...
Lets say one of the candidates is proposing a dig project. The scale is massive, 10 billion dollars/year will be spent to offer jobs to the unemployed to dig a hole of biblical proportions. When the hole is properly dug, the project will then employ these people to refill the hole. When the hole is finished being refilled, the process will be restarted.
I cut the rest off for convenience... Refer to Danoff's original post for rest.
Your example makes perfect sense to an extent, except that there is a big difference between undertaking a project for no good reason versus providing an important service that is actually needed, valued, and provides further benefits to a society.
In some cases, I would argue paying out for these services is a burden that should be taken on.
I wouldn't advocate for an project/ service to be created just to increase employment etc. It's ultimately unsustainable.
The other 5% sees the cost as high and the benefit as minimal.
That's not necessarily right.
Any economic assessment should also take into account social and environmental costs, in order to get a true cost and benefit analysis.
The results can often be quite surprising/ unexpected, but they provide a clearer picture of what happens in real life, rather that how it should happen in theory.
eg. Quickly relating back to your example: - Environmental costs of removing trees before digging hole?, of carbon released by trucking in equipment and supplies?, of water/ petrol/ other resources used up? -Social costs of bringing in people from far away? Benefits from reduced crime due to higher employment? etc. etc. etc.
A good example of this is the assessment that was recently done on the environmental impacts of different cars. It turned out that when everything was taken into account, a Jeep Cherokee was more environmentally friendly than a Toyota Prius over the lifetime of the cars.
They tried to take into account everything, like the greater distances travelled to/ from factory by Toyota employees, the ability to re-use parts from each car, the greater environmental impact (eg chemicals used) when producing the materials required for different parts, and so-on.
The benefits, if everything is taken into account, might be quite high even for the 5% that are taking on the greater initial cost burden.
For instance:
-Less sickness= more productivity, less burden on health system
(more prevention of serious illnesses, etc.)
-More income = more likely to have better education
-More education = less crime
-More education = more innovation, better informed decisions (including political choice)
-Less crime = less costs required for courts, jails, police, etc.
-Less crime = less fear, higher quality of life.
In a nutshell, a population that is healthy and educated benefits everyone.
I know that social and environmental variables are not exactly easy to quantify and plug into an economic model, but the importance of these factors cannot be understated. There are clear causal correlations at work that more than merit their inclusion.
I would suggest that one of the best ways to do this is to look at examples around the world, seeing what different approaches result.
In countries that provide 'free' healthcare and education, there are lower crime rates, higher quality of life etc. (eg. scandanavian countries)
Where these have been removed, crime rates go up, quality of life down.
Justice is determined by need and costs should be shared proportionately.
Justice is not in any way determined by need. Our system of justice is based upon the notion of fundamental human rights and voluntary agreements. A voluntary exchange is obviously not dependent upon need in anyway, it requires consent from both parties the need of one party does not overrule the consent of the other.
I should clarify my position: I was not getting at a 'just' proportionment of healthcare. If this was the case, I might be advocating for no healthcare to murderers in Jail. (lets not go there- Its only an example out of thin air)
My main concern as it relates to healthcare is not with justice, but fairness.
(Yes, they are distinct -just ask any lawyer- I'm sure we can all think of 'just' things that are 'unfair')
Human rights are also not dependent upon need. Each individual regardless of status or possessions (or religion, or race, or gender, etc.) has the same fundamental rights within the national system of justice. 👍 E]
Right, and I believe (as does most of the international community) that access to healthcare by all (not just those that can afford it) is central to the notion of human rights.
http://www.hrweb.org/legal/udhr.html
(refer to article 25)
If a system provides a service on the basis of what is already unequally distributed (money) it can never be fairly provided to all. It will always favour those with more money.
In a market based, 'user pays' system, people that need/ want the service pay for it, those that don't need/ want it, don't pay. One could argue that is just -on the surface, it seems to be- until you consider that people simply don't have equal access to what is needed to get those services provided (money). Once this is taken into account, it is harder to argue that this sort of system is fair.
Having a situation where affordability determines the availability or quality of healthcare is discriminatory and fundamentally unfair.
Saying that a situation such as this is fair because anyone can access healthcare (as long as you pay for it) is plainly absurd.
It is not fair- it reduces humanity to a dollar sum.
It ranks the worth of an individual only by how much they can pay/ how much money they have.
In this sort of system, a 'Donald Trump' is worth much more than a 'Mother Teresa'.
On the notion of proportionality
the idea that a certain percentage of ones income is worth the same amount of health care, or education, or military, or anything as anyone elses is fundamentally flawed. 5% of one persons income is not worth the same as 5% of anothers and so it should not (justly) buy the same product.
That's not what I meant- It's not about equality. Its (again) about fairness.
Someone that pays 5% of a $100k income is clearly paying more than if they earned $50k. That's not equal, but one could argue it is fair.
It's about everyone making a contribution, that in turn benefits all.
Each person is in a position to determine the health and education everyone else should get.
You might be willing to live with a scar for $2000. Your neighbor may think that it is worth $2000 to remove the scar. You might think that it is worth putting your family in debt $200k to cure your lung cancer, your neighbor may not agree. Decisions about your health (or education for that matter) must be made by the person who has to bear the consequences. Society might collectively determine that my left ring finger is worth the same as my right, but I know that it is not the case. I know that I use my left far more than my right.
Health is a very personal matter. Different aspects of your physiology mean more to you than those same body parts mean to others, and you are in the best position to determine what they are worth.
I am concerned with what it costs to provide healthcare when needed- eg. what it actually costs to operate on a foot- this can be valued objectively.
I'm not concerned with subjective valuations of each body part by an individual, or with cosmetic/ aesthetic valuations.
Even with universal healthcare, anyone is free to refuse treatment if they feel that the cost (non monetary, eg. the trauma of cancer treatments) is too much.
Like I said previously, valuation and costs are not the same.
Its not as simple as valuing something and deciding that it is worth paying for.
What happens to the person that really wants to live, they value their life highly, want to be around to help out their kids/ contribute to society/ etc. but can't afford the cancer treatments that would give them the best chance at life?
Advertising and profit makes private corporations as inefficient as government.
In the US, the government advertises. Even though the army has a monopoly on military service work, they advertise to recruit. Here we advertise government programs like food stamps, highway safety, new post-office policies, and, of course, millions upon millions of dollars are raised and spent campaigning...
(the rest @ Danoff's original post)
They advertise here too, the point is that the amount of advertising and marketing required by a government run organization is much less than when exposed to market forces, so that money can go back into providing the services. Ditto profits. These will typically outweigh inefficiencies that might be present from lack of competition (unless it is run really badly of course)
Sometimes, as in the example of the pharmaceuticals, advertising and marketing can get so out of hand, that it starts to actually reduce the effectiveness of services/ products that should be the central focus.
Again, what you said above is not necessarily wrong, but it becomes less relevant when the government organization provides an important service and is run efficiently.
I respectfully recommend:
-"Microeconomics In Context" by Neva Goodwin
-"Ecological Economics: Principles and Applications" by Joshua Farley & Herman E. Daly