Thursday, March 4, 2010

What?

In an editorial in this morning's Dallas Morning News, Froma Harrop wrote an editorial in which she addressed the languor of the American consumer. Consumers have become more cautious. Investors have become more wary. Americans have become decidedly more hesitant to part with their money. They have become inclined to hold on to their money because they are uncertain about the future. As a result, the economy is suffering.

After a lengthy and informative discussion of the topic, Harrop concludes that the remedy for the economic torpor affecting the U.S. is the passage of national health care. Harrop's reasoning is that if the American people did not have to worry about obtaining or keeping health insurance, their mood would improve and they would go out and boost the economy by spending their money on new dresses and tool boxes and taking the family to Disneyland. There may be something to this. Harrop just might be on to something. But why stop at health care? If people did not have to fret over auto insurance, they would be more apt to spend money in ways more productive to the economy. They could buy new shoes or take a day at the spa. If they did not have to worry about paying rent or mortgages, their delight would only increase and they would spend even more money fueling the economy by purchasing flat screen televisions and new lawnmowers. One can only marvel at the economic wonders that would occur if the American people did not have to concern themselves with paying their bills and taking care of themselves.

It is doubtlessly true that most Americans, if they did not have to spend their money on health insurance, or hoard it in trepidation, would spend it on something. National health care would go a long way towards lifting a burden from the public. Being released from burdens and obligations does much to improve one's spirits. Buoyed spirits would certainly be a benefit to the economy. Many would be happy if they woke up one morning and were told that their health care will now be taken care of. Perhaps they would go shopping to celebrate. But that happiness will be fleeting. Sooner or later the public will come into contact with that bureaucratic monster and feel its cost. Going hundreds of billions of dollars deeper into debt and creating a mammoth new federal bureaucracy is certainly a long way around to lifting public spirits.

So, according to Harrop, even if national health care does nothing to improve health care in the U.S., it is still a good program because as a "mood enhancer" it will encourage hesitant consumers. I can't help but suspect that there must be a better way to enhance the mood of the American consumer than spending hundreds of billions of dollars on a health care program that many don't want and there is little consensus will work. Why not simply give that money back to the public? There are few things better to lift a consumer's spirit than getting a check in the mail. If nothing else, a few hundred billion dollars in the hands of consumers would certainly give the economy a boost.

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