Class Warfare Blog

April 24, 2020

We Can’t Pay for Medicare for All! But . . .

Filed under: Economics,Politics — Steve Ruis @ 10:26 am
Tags: , ,

Michael Hudson is one of my favorite economists and recently he said this: “Just think of when, in the debates with Bernie Sanders during the spring, Biden and Klobuchar kept saying, ‘What we’re paying for Medicare-for-All will be $1 trillion over 10 years.’ Well, here the Fed can create $1.5 trillion in one week just to buy stocks.

“Why is it okay for the Fed to create $1.5 trillion to buy stocks to prevent rich people from losing on their stocks, when it’s not okay to print only $1 trillion to pay for free Medicare for the entire population? This is crazy!”

So, the very same corporate stooges that proclaim that we cannot possibly afford to pay for Medicare for All are more than willing to have their share prices and corporations supported to the tune of trillions of dollars.

And, of course, the costs of Medicare for All are never, ever placed side by side with the benefits, you know, in a cost-benefit analysis?

The benefits are immense, especially when you consider the savings from not having to buy health insurance. For example, according to Modern Health care, the nation’s seven largest publicly traded health insurers saw revenues of $913 billion in 2019. So, pay a trillion dollars a year for Medicare for All and get 0.913 trillion dollars back. And that is just the top seven companies. I suppose that if all of the rest of the companies were added it, the savings would be greater.

With just that benefit alone we are down to an annual cost for Medicate for All of $87 billion and that could be paid for by cancelling one small weapon system from the Pentagon’s budget.

Ca-ching! Done. Medicare for All is paid for.

Of course the opponents of universal health care in this country don’t want you to see a cost-benefit analysis. I mean, all of those numbers . . . bound to be confusing, so they just want to keep it simple (using a risk-risk analysis).

PS What ever happened to the idea of risk when investing in the stock market? The purchases are not insured, like savings in federally instituted banks. Remember all of the people the Stock Market Crash of 1929 bankrupted? Isn’t the danger of losing one’s money supposed to be a major factor in controlling risky behaviors? If the government is to bail out the poor, poor investors every time they get a financial hangnail, the whole system becomes corrupt, or should I say “has become corrupt.”

2 Comments »

  1. I think the price of Medicare for all is more like $30 trillion, not $1 trillion over 10 years. I don’t think even the Fed can print that much money and not suffer any consequences.
    On the other hand, all of those people who are hyperventilating about the high cost of M4A and the tax increases required to support it are deliberately keeping mum about the cost of the private employer insurance which adds up to roughly the same amount, but, because the employers pay a large portion of it (or, more accurately, withholding this from the employee compensation), it doesn’t look as expensive as it really is.

    Like

    Comment by List of X — April 28, 2020 @ 8:29 am | Reply

    • I think they meant $1 trillion per year within ten years but they aren’t known for using exact language, now are they.

      If the health insurance payments add up to about a trillion a year now, then well projections can be made. Unfortunately, many people see cost increases, others see cost savings. I think the cost increases will be offset roughly by the cost savings leaving the total amount spent about the same. The big difference is that everyone is covered instead of what we have now, which is a huge benefit.

      On Tue, Apr 28, 2020 at 8:29 AM Class Warfare Blog wrote:

      >

      Like

      Comment by Steve Ruis — April 28, 2020 @ 9:58 am | Reply


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