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The US health care system, a lesson in market failure

The US health system, more money, more waste, more corruption, less service

"I owe the public nothing"
  JP Morgan

As public services are cut along with the public sector jobs that provide them, and the Obama administration prepares for four more years of privatization policies, the extremely wasteful and inefficient US health care system continues to drain the public purse.  The inefficiency of the private sector is not just laid bare when rescued in times of severe crisis like the recent bank bailout; capitalism survives on permanent welfare handouts through its daily fraud and plunder of society's wealth. It's very existence is based on exploited Labor of course.


The US health care industry from the providers to the drugmakers and manufacturers of medical devices, feeds heavily from the public trough.  US healthcare spending went from from 9% of GDP in 1980 to 16% of GDP in 2008 and an all time high of more than 18% by 2011. The much maligned (by the US media)  Canadian health care system which in 2006 was 10% of Canada's GDP and was 70% funded by the government while the US spent 15.3% in that year with 46% funded by the government.  A major difference with regard to taxpayer funding is that in the US where the system is a business and more market oriented, the fraud and plundering of state resources is rampant and the taxpayer picks up the tab for those who are the market care abandons as well.

"Almost every estimate is that 30% of US medical spending is unnecessary, including fraud" says Elliot Fisher, a Dartmouth College medical professor and director of the Dartmouth Atlas on medical disparities. And a federal report published today and reported in the Wall Street Journal claims that hundreds of nursing homes had billed the taxpayer for skilled services that weren't performed.  "They're billing for therapy they don't provide or which the patient doesn't need" says Jodi Nudelman, a New York state official.

This investigation is just the tip of the iceberg and reveals some $1.5 billion in Medicare theft.  The theft is so rampant the capitalist class feels a need to curb some of the excesses. The Obama administration has recovered some $3 .7 billion in stolen taxpayer funds over the last three years. Coupled with this latest find that would build a few schools I think.  It's unlikely that anyone went to jail for such destructive anti-social activity, no three strikes for them, not even ten or twenty strikes for the perpetrators of such felonious activity.

Those (including some mislead workers) who argue that the market has the answer to all things should take note.  This fraud is a result of the market, it is built in to the system, a system based on theft and exploitation.  Despite these minor efforts on the part of the capitalist class to curb some of the excesses and make an example of some of their naughty boys in the aftermath of the crash and the anger that has resulted from it, they will not rectify this problem. Readers may remember that the responsibility for framing the rules and regulations for deep water drilling were handed over by government regulators to the energy companies themselves.  Then we had the BP spill.  While we would not opposes regulation, the capitalist class cannot make the system nice, make it human and nature friendly.

The opportunities for profit making in the US sickness industrial complex are considerable. More than two dozen pharmaceutical companies made more than $1 billion in profits in 2008 while one report by Health Care for America Now, says that America’s five biggest for-profit health insurance companies ended 2009 with a combined profit of $12.2 billion, an increase of 56 percent as 2.7 million people lost their private coverage. Isn't freedom swell?  And we know that most bankruptcies in the US are related to medical expenses.

The market driven US health care system murders more people than all the terrorist groups put together.  I commented on the recent meningitis outbreak another example of market failure with devastating results.  The death toll now stands at 32 with 438 people infected in 19 US states.  The perp was the New England Compounding Center which made the steroids that the victims took for their pain.  Now, the FDA has found that Ameridose, another drug mixing pharmacy has not the best manufacturing practices either and is guilty of numerous violations of US manufacturing standards.  FDA inspectors found microbial contamination and that sterile gowns and equipment weren't sterilized at all. "Insects were observed to be located" in areas where the finished products were packaged and stored and "At least one bird was observed" in the same area the FDA reports.
The FDA claims that complaints of fetal stress, a result of the company's childbirth drug weren't treated seriously.

It turns out that the founder of Ameridose is Barry Cadden, the president of New England Compounding Center responsible for the meningitis deaths. Cadden jumped ship and resigned from Ameridose right after the meningitis hit the news a month ago.  Ameridose hasn't been linked (yet) to the outbreak but we can see how they're all connected these folks. In fact, these are the people that are applauded by the Wall Street Journal, by Forbes Inc and by all the serious journals of capital.  These are the people we owe our existence to because they create profits, therefore jobs.  They also create starvation and misery throughout the world and a small outbreak of meningitis here and there. The entrepreneur is the the good guy in capitalist society, the paragon of virtue and epitome of success.  It's not that they are bad or good though, it's that the system of production, the means by which we produce the needs of society is hostile to a healthy human existence and a healthy planet. 

Now this doesn't come as too much as a surprise.  Most Americans are well aware of the corrupt and ruthless nature of the system, look how many people don't vote and stay clear of politics altogether.  Even those who vote, hate politicians.  The heads of organized Labor offer no explanation for this crisis other than greed in the abstract and the left has no significant influence in the working class whatsoever. The biggest problem is that people do not see a way out.  The occupy movement offered a glimmer of hope and received tremendous support for a while but lost steam under the influence of forces that relied on hidden and unelected leaders and tactics that excluded political action and any serious mass orientation to the working class.

The caring of human beings, of whole populations is a social need and should not be a business. Take the profit out of health care and we will have healthy people and not richer health care carers and other leeches in the sickness industrial complex. The top executives at the nation's five largest for-profit health insurance companies pulled in nearly $200 million in compensation in 2009

A step toward a healthier society and a real health care system would include:
Fully staffed free clinics providing no charge, basic health care in every neighborhood

Free Comprehensive health benefits with an emphasis on preventative care
Vision care, dental and hearing aids . Women’s health care including birth control, morning after pill, and abortion on demand.

Alternative therapies with proven medical benefit such as acupuncture and chiropractic care . Mental health care with emphasis on counseling, not just prescribing pills

Take the profit out of medical research
Create a publicly owned, democratically controlled organization to do medical research, widening and democratizing the current role of the National Institute for Health . The direction of medical research and the function of care to be made by elected councils of researchers, health care employees, and community members: Unite and Empower Healthcare Workers

Create an industry-wide union of healthcare workers to include every worker in a hospital from the janitor to the surgeon . Improve working conditions for healthcare workers: wages, shift lengths, nurse-to-patient ratios . Free medical education: Nurses, technicians and doctors to serve the public without decades of debt .

Build a United Front direct action movement to drive the corporations and the profit motive out of this crucial social need and through this build an independent worker or Labor Party to strengthen the power of working people, the unions and community organizations*

*Much of this program comes from a Facts For Working People Health Care issue we published in March 2007. For a pdf of this issue send and e mail to we_know_whats_ up@yahoo.com

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Share something with your neighbors. Write a new post... What's up? Make an announcement, speak your mind, or sell something
california girl May 18, 2013 at 08:05 pm
I loved the green tea!
anthony May 17, 2013 at 01:01 pm
go nuts, or one of each... for later of course. would go scone myself, old habits die hard.
Leah Hall May 19, 2013 at 01:59 pm
Young man! The stormtroopers get into the act.... http://www.youtube.com/watch?v=MuJXaVrvpXE
Justin Agrella May 19, 2013 at 09:43 am
http://youtu.be/78LAgl90UyM
Leah Hall May 16, 2013 at 05:04 pm
Youth development, healthy living & social responsibility... ...in San Leandro! For the firstRead More time ever! Thanks to everyone who brought the YMCA "Move-A-Thon" to San Leandro and all the families that participated! -Leah Hall SL Human Services Commissioner & Volunteer YMCA Youth & Government advisor (for our San Leandro delegation comprised of San Leandro high school students)
anthony May 18, 2013 at 04:31 pm
remembered reading this here, maybe ther's a forward in thereRead More somewhere...http://sanleandro.patch.com/groups/politics-and-elections/p/local-hungry-families-helped-by-urban-farmer. Don't hold me to this one, but I thought Tim at Zocalo Coffee was a keeper.
Richard Mellor May 15, 2013 at 06:38 pm
I have a friend who has just had a hive put in her garden If you would like me to put u in touchRead More with her contact me at aactivist@igc.org
Analisa Harangozo (Editor) May 15, 2013 at 12:02 am
Thanks for posting in our Announcements Board, Christa! I shared this on our Facebook page. I hopeRead More this helps you in your hunt for honey bees :)
RHG May 17, 2013 at 03:46 pm
First let me say sorry for the loss of one of your family. Ive been keeping my eyes pealed incase IRead More see him. But I'd recomend since he is going blind, it might be easyer for someone to catch him if we knew his name. Just a thought. Hope for his safe return.
Carol Parker May 14, 2013 at 08:45 pm
I'm happy to report Buster found a forever home on Mother's Day. There are other bassets availableRead More for adoption on Golden Gate Basset Rescue's website, however. Adoptable dogs will be on hand June 9 from 11 a.m. to 3 p.m. at Pet Food Express on Blanding Avenue (in the shopping center of Nob Hill Foods) in Alameda. Come down and see some hounds up close and personal.
Stefanie Pruegel January 29, 2013 at 05:11 pm
I would speculate that more durable, reusable bags still score a lot better than disposables, evenRead More if a small fraction of those are "dual use" as in the cases you point out (dog poop, trash can liner). BTW, for those concerned about a dwindling supply of free poop bags as a result of the ban, here are still plenty of plastic bags available for that purpose e.g. those that people's newspaper comes in. The bottom line is that most people would agree that reusable bags are the better solution than to continue choking our waterways with disposable plastic bags.
David January 21, 2013 at 10:12 pm
There are plenty of competing studies that disagree. I perused that, and one huge faulty assumptionRead More that they have is that "single use" means single use when as we see above, people use them for dogs, garbage etc.
Stefanie Pruegel January 21, 2013 at 09:47 pm
Funny you should bring up cost/benefit analysis of disposable plastic bags vs reusable bags, David.Read More This is exactly what was done in 2010 by a coalition of several California cities and organizations, to help communities in the state gauge the impact of any ordinance they consider passing in regards to disposable bags. The upshot is that reusable bags (particularly non-woven plastic reusable bags) have significantly lower environmental impacts on a per-use basis than single-use plastic bags. Find the full study here: http://bit.ly/VWdEn9
Sarah Nash May 10, 2013 at 02:18 pm
Just had a chance to read this story. Loved it! While I believe that conscientious students wouldRead More try their best at the test, as I did when I took state aptitude tests in school, I can hardly imagine staying up nights worrying about it! There is nothing at stake except perhaps personal satisfaction so the test itself shouldn't impose stress. A high-strung parent, on the other hand, might.
David April 27, 2013 at 03:09 pm
Oh come on, Rob. You talk about me cherry picking stuff? 10/10? Sure. And as I've shown you canRead More pull out Maxwell Park, North Oakland, parts of SF (Glen Park, for example), parts of El Cerrito and other locations to show that API scores aren't well-correlated with property values. Again, why do homes sell for the same $/sq foot in Maxwell Park as Estudillo Estates? San Lorenzo's API is about the same or better than most of SLUSD. Property values there are lower. The clearest example of what effect API scores have on property values was mentioned below, about a 10% difference depending on which side of the tracks, er, 580 you live on in Castro Valley. 10%? whoopdedo, that kind of variation is washed out when you factor in commute times, crime, amenities, etc. In fact, API scores are likely to continue to shrink as a factor in RE values as more and more parents flee the public schools, no matter what the API (witness SLUSD, the 30% drop in OUSD enrollment in just the past decade, etc). In another generation, we'll be accused by our children of child abuse by having sent them to public schools.
Rob Rich April 27, 2013 at 12:38 pm
If you accept the premise that API scores are poorly correlated with real estate vualues, then is itRead More coincidental that the top school districts are in areas with high real estate values? http://www.greatschools.org/find-a-school/7046-ten-california-school-districts-highest-test-scores-2012.gs. In the old days, 10 for 10 was considered pretty good correlation.
David April 15, 2013 at 09:58 am
To my point. Fred, we can agree to disagree, but here's my point: Leah, you have repeatedly sungRead More the praises of BUSD. More than a few of your neighbors and those in the other upper middle/lower upper class areas of SL think similarly. BUSD, as I have also pointed out, does a *worse* job, relative to SLUSD, of educating what I presume you'd call "stressed" kids--those in poor socioeconomic strata, blacks and Hispanics of whatever color. Yet, you hold BUSD up as a great system. It's not. The only reason you and your fellow travelers in the Broadmoor/Estates/Bay-O think it is, is due to the presence of "enough" upper class white/Asian kids who perform well enough to drag up the overall scores. This has a beneficial effect on property values, demographics etc in places like Berkeley and certain neighborhoods in Oakland. How to quickly achieve that in SLUSD? Re-organize the schools so that they're K-8. We'd automatically get better scoring K-8 schools in the Roosevelt/Bancroft districts, and with those high performing schools in the Manor. With a stroke, you'd get 40-50% of K-8 kids in SLUSD in "high performing" API 800+ schools. And Fred, we'd just have to disagree here. Schools of reasonable size like Hillcrest (K-8, upper class area) do just fine, I think a similar dynamic would work here in the Estates etc.
David April 15, 2013 at 09:54 am
Leah, I *highly* doubt the kids' poor outcomes result form "everyday stress." As I'veRead More repeatedly pointed out, 7/8 of my great-grandparents never progressed passed 8th or 9th grade, yet they all achieved higher levels of literacy and numeracy than those demonstrated repeatedly by Mr. Heverly's high school students. As for everyday stresses, need we go into life in the 1880's/1890's and how easy people have it today? You want to compare today's "stresses" to those of being a black girl in Mobile Alabama in 1890, or a black guy in Beaumont Texas in 1890? Moving on to today's world, and your ridiculous comments. As Fred points out, kids today get food paid for by us taxpayers, classes under 30 students (not that class size has *EVER* been demonstrated to do anything for students, but it does increase the numbers of teacher union members...). Cont..
Fred Eiger April 15, 2013 at 02:23 am
I doubt it David, times have gotten worse. With billions of money wasted on welfare, rentRead More subsidies, free school breakfasts and lunches all we have to show are fat, lazy ignoramus' sloths who only want more welfare and continue to produce idiots. Leah, your educational views are abject failures. It's times for you and your ilk to just go away and leave the educational system to the adults who know what works.