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Politics : Formerly About Advanced Micro Devices
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To: Road Walker who wrote (360499)12/1/2007 7:20:43 PM
From: TimF   of 1577194
 
Higher volume = lower price and better quality through productivity.

That is hardly universally true, or even something that is almost always true.

Economies of scale operate, but only to a certain extent, and rarely to the point that adding a few tens of millions to a market of hundreds of millions greatly increases the economy of scale.

In fact you can have dis-economies of scale as well (not that I really anticipate them in this situation)

In the short to medium run you will be increasing costs, because your increasing demand, and capacity will take years, or possibly even decades to match. In the long run you might get a slight benefit from economies of scale but I see no reason to think it would be a large one.

Also as you increase the costs you get more pressure to contain costs which can also decrease quality.

As you increase volume you get more pressure to decrease cost. I thought you thought that was a good thing.

If the decreased cost is due to greater efficiency as the market adjusts then great. If its due to political pressure to cut costs, than it will likely result in lower quality.

Since a major portion of the sample has no treatment at all

That isn't true.

The "uninsured" received treatment. Many of them are either wealthy enough to afford insurance or to afford almost any medical care they might need should they need it, or are poor enough to qualify for existing government programs.

Even those who fit in neither group have care made available to them. For this subgroup I could easily see the claim that care will improve as being reasonable, but its not starting from "no treatment at all".
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