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Politics : A US National Health Care System?
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To: Road Walker who wrote (3093)12/5/2007 11:22:42 AM
From: Lane3  Read Replies (1) of 42652
 
Listen, this is simple. When companies have R&D costs they build them into the selling price of their product. Or they go out of business.

I understand that. The question is will "Walmart" want to pay those costs or squeeze out the margin for R&D.

You're talking about a totally free market environment. Yes, that's the way that works. But when the parties aren't on an equal footing or the market isn't free, all bets are off. Walmart really doesn't care if Jennie's Jumpers goes out of business. Their priority is low cost for their customers. If Jennie's doesn't survive, they'll get their jumpers someplace else. They're business minded, not community minded. There will always be other manufacturers and other products.

We don't know how a nationalized health care system will react to its power. It may respond to voters' cries for lower prices and forsake the long term. Congress isn't exactly known for thinking long term. Or it may build in more bloat than we have now, lobbies being what they are. Or negotiate just enough overhead to break the budget but not enough for the companies to do serious R&D, the worst of both worlds. You can't be sure how that will play out. With a market system, supply and demand and all that can be reasonably anticipated. With a political system, it's a crap shoot.
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