Want Real Stimulus? Try Universal Health Care
Health-care reform would put one of the most productive sectors in the U.S. to work to shore up the nation’sitting economy
By Chris Farrell
The economy is in a tailspin. The latest reservation of grim tidings came courtesy of the Labor Dept.’s Dec. 5 employment report: U.S. employers slashed 533,000 jobs in November (BusinessWeek.com, 12/05/08), the largest monthly decline in more than three decades. The unemployment charge now stands at 6.7% and the ranks of the jobless bring forth increased by 2.7 a thousand thousand since December. The broadest measure of unemployment (a figure that includes the unemployed, employees laboring part-time, and others barely working) stands at a dismaying 12.5%, or 19.3 a thousand thousand workers, up from 8.4% a year ago, or 12.9 million workers.
Considering the whole of the actions being taken by the U.S. Treasury and Federal Reserve to shore up the economy, the risk that a disinflationary recession deepens into a deflationary depression remains distant. But it isn’t inconceivable.
The New Stimulus PackageTo stave off an unwelcome reprise of the 1930s, the incoming Obama Administration and Congress are preparing a large fiscal stimulus package for the New Year. Economists guesstimate the size of the ultimate package at somewhere between $300 billion and $500 billion. (That’s more than duplicate or about triple the tax rebate program from earlier this year.)
The desire of legislative initiatives is long. A big boost in public infrastructure spending, support for struggling homeowners, money to shore up the financial system, some form of a bailout for the Detroit auto industry, and manifold tax release measures are totally going into the legislative sausage-making apparatus for 2009.
Yet major health-care repair—specifically, universal health care—should cover on the top the list. Forget any hint that reform is too expensive or that it would take too longing to have any impact. Wrong, on the one and the other counts. A daring embrace of general health solicitude offers policymakers the chance at a fiscal triple-play: Universal coverage would stimulate the established order, it would boost the financial stake of ordinary Americans, and it would break the health-care reform log-jam.
Rx for a Healthy EconomyTo explanation and update a famous quote about General Motors (GM), what’s good in opposition to health-care form anew is good for the dispensation. (It would certainly have being good for General Motors, overmuch.)
The case for long-term reclaim is compelling. The problems associated end America’s badly frayed health-care system are well known. The country spends a world-beating 16% of gross domestic product on health, nevertheless in international comparisons it lags back a number of solution measures. For instance, the U.S. ranks 29th in infant mortality and 48th in life expectancy. The number of people on the outside of health insurance was 38 million in 2007, and that number is guaranteed to have risen in the meantime with the recession that began a year ago. With universal health care, everyone under age 65 would be covered by a qualified health insurance company or from one side a government-sponsored program. (Those over 65 already be the subject of a version of universal coverage through Medicare.)
