Monday, April 26, 2010

Today's Expensive Health Care is Tomorrow's Necessity

Economic Terms:

Entrepreneur: a person who organizes and manages any enterprise, esp. a business, usually with considerable initiative and risk.

Labor: productive activity, esp. for the sake of economic gain.

Manufacturing: the making of goods or wares by manual labor or by machinery, esp. on a large scale: the manufacture of television sets.
www.dictionary.com

Description: The economic event being analyzed in this article is that of the desire of many Americans to decrease the cost of health care. Years ago, in historical ages, everything, including medical expenses were rapidly rising. However, in today's economy, the prices, refusing to dwindle, stay constant. This negatively impacts over half of average American families seeking coverage. The author suggests that we need to raise the profits of doctors and physicians in order to create healthy competition between insurance plans and other competitors. Therefore, the cost of health care coverage will decrease as more and more people compete amongst each other for "the top spot."

Analysis: This economic event is occurring because of the dearth of doctoral profits being made in the present to present a decrease in costs in the future. Also, this is due to legislation's unremitting attempts to lower the costs of health care. However, economists suggest to just leave the issue alone for a while and let it tackle itself.

Explanation: In essence, doctors and their profits are not being embraced. Therefore, this doesn't cause enough friction amongst competitors to ignite change. Rather, the government is ruling out competition by doing so.

Prediction. Based on this article and as an economic commentator, I find the contents of this article to be extremely true and realistic. I agree with the author that high prices are essentially good to be able to provide for low costs in the future. I also agree that the salaries and profits of doctors must become exorbitant in order to create healthy competition to lower the costs of health care. I agree with these points because the reality of it is, is that change does not occur over night. Furthermore, without competition there is less demand and supply with is unhealthy for the economy. Therefore, Americans will be coerced to struggle with stoning for medical expenses in which the government and insurance companies can be subsidizing, and we will never see a change.

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