Financial Bailout vs. Universal Healthcare
Never before in the history of humanity would so many have to pay for the greed and incompetence of so few.
I’ve sort of been sitting on this topic for a little while, in part because I wanted to do a little more reading, but mostly because I wanted to see how the bailout was going to turn out. So, without further adieu, let’s jump in to what I want to talk about here.
First of all, if you’re not familiar with what’s going on in the U.S., we’re in a bit of trouble. Personally, I think if we’d stop sticking out nose in other people’s business and worry about home, we wouldn’t be in this mess, but I’m just a personal banker, so what do I know? Anyway, the housing bubble has burst and left us in a bit of a mess.
The subprime crisis has in turn led to a financial crisis and too many banks have taken on these risky loans in their myriad of greed. As a result, A LOT of them are failing. I just saw on USA Today that Citigroup – the number three big bank staying afloat, behind Bank of America and Chase – has agreed to save Wachovia by buying their banking operation. I think that makes 13 banks down, but honestly, I’ve lost count.
So, the Bush Administration decided that the best way to fix this mess is with a $700 billion bailout. Essentially, the government would seize control of sour mortgage-backed securities from failing banks in an effort to unfreeze the nation’s credit markets. The problem is, they’d have to sell the debt in order to make money out of it and if no one wants to buy it, well American taxpayers are S.O.L.
The government itself was torn on the issue. The Bush Administration and those in support of the bailout believed that it was necessary in order to avoid going into a depression the likes of which hasn’t been seen since the Great Depression, though they admitted that such a thing was still possible even with the bailout. Treasury Secretary Henry Paulson stressed that it was important to pass the proposal now before the global financial markets took any more damage and remained unsettled. Hmm, way to care about the U.S. bucko!
Fortunately for taxpayers, we had a voice of reason in this mess. House speaker Nancy Pelosi, D- Calif., said that the proposal “does not include the necessary safeguards.” She stressed that there needed to be “independent oversight, protections for homeowners, and constraints on excessive executive compensation.”
You guys know my thoughts on what we should do with the executives of these companies, but just in case you missed my financial rant, you can check it out here. Executives that have run their companies, and by extension, this country to the ground SHOULD NOT get a hefty six figure severance package. Instead, use that money and the money they made off these rotten deals to put back into the economy to help bolster it. Every other professional in the world that gets fired is on the chopping block, as it were, yet these financial executives are being praised for their terrible jobs. Gimme a break!
Fortunately, the bailout was shot down in the House on Monday.
But, here’s what I find interesting. The government has expressed that they will not pursue universal healthcare because it’s too expensive. Ok, here’s a tidbit for you. The U.S. spends 40% more per capita on healthcare than any industrialized country with a universal system. The truth is, studies show that the U.S. would SAVE $100-200 billion dollars by adopting a universal healthcare system.
Beyond those statistics, here’s what’s even more disturbing. The U.S. is willing to fork over $700 billion of our tax money to bailout some idiots in the financial industry, but they’re not willing to consider healthcare options that will reduce our out of pocket expenses, allow more people to be treated, and could potentially save us $100-200 billion over what we’re paying now. Seems to me that this country wants to keep the rich richer and the poor poorer. Gotta love capitalism!
Did you know that despite the fact that we have some of the finest doctors in the world, we rank poorly relative to other industrialized nations in overall healthcare. That’s pretty sad. The government has also used the excuse that the people don’t want a universal system because it would take away our freedom of choice and put our health decisions in the care of the government. Here’s the thing, there are different types of universal healthcare systems. A single payer universal healthcare system, for example, would still allow consumers the freedom to see the doctor of their choice.
Analysts have even drawn the conclusion that single payer universal healthcare that is administered by a state public health system would be much more democratic than our current system. As it stands now, people are required to see doctors on the “in-network” in order to receive the full benefits of the insurer. There wouldn’t be a managed care system under a single pay system, unlike now where it is mandated that the insurer pre-approve services, effectively taking decisions away from consumer’s and healthcare providers.
There would be a board involved with the state public health system that would include a group of people representing consumers, providers, businesses, and the government. This way there is a mix of people that are ensuring all parties’ interests are being met. The government wouldn’t have sole control in this scenario.
There are a ton of statistics available on this subject. In fact, for more statistics and details, you can read them here. So, someone please explain to me where the sense is in all of this. The government won’t consider the options on universal healthcare because it’s too expensive, but they’ll blindly throw $700 billion into a bailout that may not work in the first place?
Now, I’m not saying I’m totally against a bailout. I work in the financial industry, I’d like to keep my job if you don’t mind. But, I do think Pelosi is right. There needs to be safeguards for both homeowners and taxpayers alike. If this kind of deal goes south, consumer’s need to know they have some reassurances when it comes time to pay this off. We don’t want to be the ones holding the bag while the government hatches its next dumb scheme to get us into more trouble.
Alright, now it’s your turn. Weigh in on what you think about this situation. Is universal healthcare something this country needs, or are you more concerned with bailing out the financial industry?
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[...] I’ve sort of been sitting on this topic for a little while, in part because I wanted to do a little more reading, but mostly because I wanted to see how the bailout was going to turn out. So, without further adieu, let’s jump in to what …[Continue Reading] [...]
AMEN! I keep talking about universal care. I keep saying I am okay with the BAILOUT IF people are ready to FOLLOW the rule. Screw them if they don’t want to be socialized fine. Don’t take our $$$. I’m a die hard liberal, and I’ll help but only if you really want it and will toe the line.
I can totally understand the smaller government, less taxes. BUT don’t whine about not having healthcare, not having protection against these credit and mortgage problems, you wanted smaller government and you got it!
I can whine because I never wanted the war in iraq, I didn’t vote for bush, and I certainly thought less regulations was stupid. But now people are whining?
I hadn’t ever thought of it as an either/or situation. I definitely want universal health care; I think our current system is way too expensive and excludes far too many people.
On the other hand ome form of a bailout for the financial industry seems inevitable, but I remain less than convinced of its necessity. For one, I’d like for someone to explain where the $700 billion figure came from in the first place. Secondly, I think the people who are pushing for this plan (Paulson and Bush, primarily) have done a terrible job showing the American people just how it can help us individually. I’ve heard the case made by others–financial experts even, and it is compelling, but very few Americans have been given the opportunity to hear this part of the plan–where it helps the average American citizen and not just the “fat cats” of Wall Street.
[...] talks about Bailout versus Universal Healthcare, amen. I [...]