I'ma just put this out there, Fiat Currencies can operate with infinite debt. Because it's not bound to gold, it don't mean shit. There will always be money to spend on govt projects, this is why the govt could manufacture a trillion dollar coin if they wanted to. Where did that trillion dollars come from? Nowhere.
This usually results in inflation, but if your economic decisions are improving consumer confidence and getting them to spend more money in local and national economies, you're likely to end up with more money than you spend, and your books are still balanced.
You can't just throw money at the problem though, that results in stagflation, where the money don't push the economy into high gear. I've actually seen it work, believe it or not, in Australia. We dished out 900 AUD to each taxpaying citizen from the profits we were getting from China, with the ruling that it must be spent on consumables. Electronics, foods, consumer products, etc. Kicked the economy along and avoided the GFC, very cool. But this is not the case for every country. You must target your spending.
I can't say how scary it must be in the US when you're not earning much and fall sick. How much is your doctor's visit going to cost? How much is your medication going to cost? The fact that people put things off, even when severe, to wait till they have the money to do so, tells me that it's enough to halt consumption. You don't want to spend all yo moneys cause you might need it. All that money could be going into the local economy, but it's trapped in the health market, and worse still in bank accounts, doing nothing.
In Australia, you have no money, and you're sick. That's fine, you walk into your doctor's, see him, get your meds, pay exactly nothing, and get well. Nobody gives a fuck about getting ill, we don't save for it, we don't worry about it, the best you do is, if you're wealthy, you put some aside for private health insurance (which is very affordable, cause otherwise you'd just drop back onto the public system and pay the excess tax for doing so). All of our income that in the USA would go toward saving for possible medical costs just goes towards Xboxes and books and ludicrously expensive beef (cause big country == big transport costs).
This is, straight up, an economic advantage. Pair this with a sales tax, and you've just generated a fantastic revenue stream for govt, that is worth significantly more than the cost of the public medical system.
When it comes to the cost of healthcare, a friend of mine explains it well: He is married and has two kids, ages 5 and 7. They have a family health insurance plan through his wife's employer (she is a nurse and has good health insurance), for which they pay $275 per paycheck (paid bi-weekly). That works out to $7,150 annually. Do you seriously think that your taxes would go up $7000 under a President Bernie Sanders? Of course not.
It's economies of scale. The more people buy into the pool, the lower rates will become for individuals. In a national pool, with a large proportion of young, healthy people, the expectation is that the vast majority of people will pay significantly less for health insurance . Yes, your taxes would go up. But even if they went up $2000, you'd still save over $5000 a year.
Bottom line: Norway, Sweden, Denmark and others have managed to figure this out. Are conservatives trying to suggest that the United States is not as good as Norway? Give me a break. They should be framing this as a patriotic imperative. We're Americans, goddam it! We're better than this!
FFS, Australia managed to figure this out. Australia. A nation of drunks and criminals. Come ON.
(Redezra: )
Yes this exactly. Although the criminality helped, it's easier to steal from the rich and give to the poor when you've been stealing for centuries already.
The problem with this is that it can't last forever. Money still equals real things in the real world. You only have a certain amount of food, or water or doctors or nurses and all of them get paid for their labor, knowledge, expertise and so on. For the resources spent on the people, not just money but what those resources mean. You can print off money, but even ignoring inflation eventually you'll be running on fumes. Cars without gasoline simply won't run, Nurses without food; if you just pretend that you're giving them something of value eventually it will catch up to you, typically in regards to inflation, but it will do more than tank the economy, it will leave people pretty much nothing despite all the work they put in to things. You can't keep something like that up forever, money still means things in the real world until that money can't be trusted anymore. Furthermore, as a country dependent on foreign trade, even if we can get away with producing unlimited amounts of money because enough people are essentially willing to work for free, the rest of the world won't accept our severely reduced in value money and that will kill the many things we depend on and import. We can only continue to borrow money so long as people trust us to pay it back and if we just print off money at random people will lose that faith and the foreign entities we are borrowing money from will stop lending us the money, thus increasing the severity of the inevitable crash of such a choice.
Secondly in the U.S. there are already healthcare programs. On top of the ACA, a program authorized by Obama and created by the Republicans (albeit with a few changes), we've had healthcare in this country for years, chiefly medicare or medicade. The poor, extremely unhealthy, the elderly, the orphans and generally anyone who can't take care of themselves immediately get special benefits, and most people have their healthcare taken care of.
In fact, the U.S. provides more money per citizen from it's government than any other country in the world. [1][2 People happen to spend more money on healthcare in the private sector. We already have enormous healthcare support. It's totally ludicrous to assume that we simply leave people to die or have no social safety nets in place.
The argument I'm making is that absolute government control is a mistake. No Nordic, European or other country has a government that is the only source for medical care, for obvious reasons of allowing for free-market alternatives if people so choose. Government assistance is not the same as the government mandating you accept their help, mandating you be their only life-line. And the government taking over all healthcare leads to a number of nightmares such as how do we decide who pays for what, how do we decide what the government will pay for, how will we get the money to pay for it and so on. We already pay the most. Now, if we want to argue that a restructuring of certain things, a focus on preventive measures rather than treatment to prevent people from getting sick in the first place, particularly obesity which we have the highest of an OECD country and so on and so forth are important things than we can do that, but it's not about how much money we spend. It's not about giving people yet more money to spend on healthcare or providing them with yet more government assistance. It's everything else.
Edited by Manoka, 09 February 2016 - 12:59 AM.