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Uncomfortable Truths (things that make you want to cry)


This is one of those posts that requires a fairly long preface, so bear with me here.

I will not make the egotistical assumption that all of you know my history, but to save those of you who do the excruciating pain of going into the full bio, let me say "I've come a long way, baby."  My thinking has been so changed since arriving at TPM exactly one year ago yesterday, I hardly recognize the woman I was then. I was a non-thinking sheep, staunch Republican whose mind was closed to anything said by a Democrat. Now, I am a Democrat who fights everyday to avoid becoming a non-thinking, staunch Democrat whose mind is closed to anything said by a Republican. In other words, for really the first time as an adult, I am trying to learn as much as I can and make a decision based on reality, or at least as much reality as it is possible to have when all your information comes from people who have biases, regardless of whether those biases are ill-intentioned or not.

I have admitted on many occasions that I am troubled by the notion of "single pay" although I've warmed to it over the months. I see people struggling with illness and an inability to afford health care. The idea of anyone dying in America because they can't afford a doctor, or losing their homes because of the overwhelming costs of health care brings me to tears, literally. My compassion sometimes overrides logic, and I have gotten to the point where I am almost ready to throw caution to the wind and support single pay. Almost.

I've participated in several discussions here about the pros and cons of single pay vs. reforming the insurance industry. My hesitation about single pay has always been the expansion of the government's role in our health care. I have always been, and continue to be wary of the government. I do not trust our elected officials as far as I can throw them. I have more faith in President Obama than I have ever had in any president before, but trust? I'm not completely there. The point is, our elected officials have done little to inspire my confidence. In truth, the more I pay attention, the more convinced I become that the "republicrats"  do not have the country's best interests at heart, let alone ours as individuals, but rather, their own selfish interests. Be it power, money, sex...they all want something other than seeing this country be the best it can be for ALL of its citizens.

I see most of our elected officials and most, if not all the big wigs in the insurance/pharma/medical arena (as well as most, if not all CEOs of ALL corporations, but that is best left for another post) as being akin to a highly aggressive melanoma. Rather than being simply parasites that latch onto a host, then milk it just enough to get what it needs, but leaving the host healthy enough to survive, these CANCERS just greedily eat away until the host is dead, in spite of the fact that they will die as well (but it'll be a helluva party until then!)

So then, it is no wonder that after reading the essay I will present just a little further down, I find myself rethinking my rethinking. This is not an easy essay to read (It's not hard reading, just hard to ignore the snipes to get to the meat.) It is obviously written by a person who has much disdain for the left and the current administration. I was only able to get through it because I promised my husband I would read the whole thing with an open mind. I almost couldn't get through the third paragraph (the first two were pretty funny.)  As much as I want to disregard the whole essay, it contains some uncomfortable (possible/probable) truths that I think we need to at least examine before we cast them off, in spite of the partisan rhetoric I abhor.

I am tempted to give you a few teasers, but I would truly like to have a discussion on the essay itself, with people who have taken the time to read it. THE WHOLE THING. But I will give you the disclaimer at the end so you can get a taste of the writing style of the author, a man by the name of Clifford S. Asness, Ph.D. (Managing and Founding Principal AQR Capital Management, LLC.


"This is Cliff speaking now. AQR's legal department would like me to add that I am criminally insane and barred by an order of rhetoric protection from speaking on AQR's behalf. Anyone trading on my advice, or a client, consultant, employee or Iraqi insurgent thinking he has been wronged by my attitudes or opinions can have a $250 out-of-court settlement right now if you'll sign a waiver, otherwise we'll break you. Oh, and we lied about the $250, but seriously, we will break you. Please note, nobody can predict where markets will go in the short-run and sometimes even the long-run. When I point out individual things in the marketplace that I think are strange, or wrong, it doesn't mean I have the perfect answer or can easily make money from it for my clients, for myself, or certainly for you reading this essay! Furthermore, if you read one guy's opinion and do anything based solely on that, you are an idiot. Next, as the legalese above alludes to, the actual funds and accounts AQR manages are run using models that may or may not agree with what I'm writing herein, particularly as our models will generally have a shorter time horizon than the things I'll be writing about. Listen to me at your own risk! If you choose to read what I write please only use it as one input for you to critically evaluate in your decision process.

Finally, my style is to write very aggressively and passionately about what I believe. So unless you are a libertarian/objectivist, small government and free market loving, socialist hating, value investing geek you probably won't agree with everything or anything I say. If you find the way I say it insulting, I'm sorry about the first few words you couldn't help reading, but if you read a moment past that (in this disclaimer or later), it is on you. I agree we need to censor things occasionally but only to protect children and madmen (and of course the children of madmen). If you believe in censoring anything else short of a nuclear secret you'd probably look good in hobnail boots and the crooked cross. Thanks for listening."



So, What do you think guys? Is there any of what he says that we need to consider before heading forward? Or is this just propaganda? And if you believe it is, why do you think so? Even though a lot of what he says makes sense, I don't know this guy. I value your opinions.





 

101 Comments

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Hi Stilli - I read Cliff's diatribe. The problem with responding to it is that it's very long, with many assertions, and every one of them is wrong, starting with the first sentence, in which he misattributes to Will Rogers an observation made by someone else, probably Josh Billings.

Moral - if a writer can't even get the first thing he says right, it's probably not worth reading the rest.

Actually, I may have exaggerated in that he probably made a few accurate statements among the many false ones, but his conclusions are wrong in every case, as are many of his facts. For this reason, there's little point in responding overall. If you have a question about any specific claim, you should ask it, and many of us would probably be happy to respond.

More useful to you, though, would be to read the numerous posts here on healthcare reform, where the issues are discussed at a much higher intellectual level than in Cliff's piece. Here is one I'm familiar with because of the exchange of comments I engaged in, but there are many others, including probably some that deal with more of the basics - http://tpmcafe.talkingpointsmemo.com/talk/blogs/robert_reich/2009/07/the-house-tax-the-wealthy-to-k.php

Good luck.

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Thanks, Fred...I've read most, if not all of the pieces here, and they pretty much follow the same path. I was interested in seeing an opposing view, and felt that Cliff, although OBVIOUSLY biased, brought out some points I hadn't heard before (most remarkably the one about the price of drugs in Canada and how if we weren't paying the R7D costs, they wouldn't be getting those prices.)

So in what way are his comments about Canada inaccurate?

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sorry....R&D

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The discussion of the drug funding issue is nonsense - many of the drugs that actually solve problems are developed in large part with NIH (ie, government) money. Most of the "miracles" delivered by the pharmaceutical industry on its own are either "quality of life" drugs (Restless Leg Syndrome, anyone?), sex pills, or tiny modifications of existing drugs (to get new patents) which are then pushed on doctors by sales reps.

Although, I have to admit I gave up on the article halfway through, when he started referring to the current administration as a "junta". Given that the typical association of that word is with corrupt military dictatorships, it shows that the author can't even keep his ideology covert. Writers during the Bush administration lost a lot of my respect when they used that term, and it was slightly less inappropriate then.

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Googled the quote and the first 3 items attribute it to Will Rogers...

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It was actually Josh Billings, or at least can't be traced back any earlier. The fact that Cliff and others falsely claim to know that it came from Will Rogers illustrates a principle enunciated by Josh Billings - "The trouble ain't what we don't know, but what we know that ain't so". (Billings is quoted in slightly different ways each time he is cited, but my quotation above captures what he said).

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How do you KNOW that, Fred? I'm not disputing it, just can't find corroboration...site, please?

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Google Josh Billings ain't so.

One example is at http://www.amazon.com/Quote-Verifier-Said-What-Where/dp/product-description/0312340044

However, Cliff knew a great deal more than that observation that ain't so.

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I read through a list of 82 of his quotes...what a smart man! At any rate, based on my google search, I wouldn't hold Cliff's attributing that particular quote to Will Rogers against him...many others do as well...

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I don't think he deserves the death penalty for his Will Rogers misattribution, but yes, he does deserve some blame for repeating claims without determining whether they are valid. He does that throughout his piece, and it's a form of intellectual malpractice.

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Let me add to that. I too had heard the remark attributed to Will Rogers. I too wanted to quote it apropos a comment I was making. The difference between him and me was that before I wrote that Will Rogers said it, I thought it might be a good idea to research the point. Unlike Cliff, I discovered that what I "knew" wasn't so before I asserted it publicly. That way, I didn't need anyone to point it out to me.

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And here I was trying not to read comments to try not to just chime in and have more to say. The first think I said was the first comment. and debunked too. Experiment FAIL.

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Didn't Josh Billings also say, "About the most originality that any writer can hope to achieve honestly is to steal with good judgment,"

I've seen that "Not knowing" quote variously attributed to Artemus Ward, Will Rogers and Josh Billings. Obviously two of the three were simply living up to Josh's other quote and 'stealing' with good judgment.

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If I had gotten nothing out of this post other than an introduction to Josh Billings, I would have considered the post a success. How I managed to get to my age w/o ever hearing about him is beyond me.

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EDIT! Not a success, rather, valuable.

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Stilli - Let me just add one thing for starters. Cliff tries to discredit Canadian healthcare, but if one looks at all of the dozens of industrialized nations beyond our borders, every one, without exception, surpasses us in that it provides nearly universal health care at a far lower cost (e.g., 10 percent of GDP compared with our 16 percent), and yields better health outcomes, as judged by the standard WHO criteria of life expectancy and infant mortality.

Some of these nations utilize a single payer system while others employ a mixture of public and private resources, but all include a strong public option. If it were Canada alone, Cliff might get away with his arguments, but when we fall far below every other developed nation, each of which utilizes the power of the public sector to provide adequate healthcare, his argument simply self destructs.

Again, for more details, read some of the other posts and comments.

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But, you are not mentioning the fact that their drugs cost sooooo much less than ours. Wouldn't that be a major factor in their lower costs? And won't those costs go waaaaay up if the drug companies have to shift some of the R&D costs to them in order to make up for profits they will lose here?

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Unconscionable drug charges are part of the reason our health care is too expensive, although hardly the only one. Within the U.S., Medicare and even more effectively the VA healthcare system negotiates much more reasonable drug prices, indicative of what a public component to healthcare can do.

The cost of drugs is hugely inflated by the drug companies, and we could in fact develop drugs faster and cheaper if we used appropriate leverage to reduce the exorbitant charges, which cannot be justified on the basis of legitimate costs to the companies. In fact, no other industry gets away with the kind of extortion they engage in. The area of drug R&D is one I'm familiar with, and one I discussed in a previous post - http://tpmcafe.talkingpointsmemo.com/talk/blogs/fredmoolten/2009/06/prescription-drug-costs-can-be-2.php

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I read the post, Fred. But how does this fit into what is being proposed in Washington right now? Or does it?

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The drug industry analysis sort of fits, but probably not enough. If you look down the thread to the link I posted discussing the House Healthcare Reform bill, you'll find that the bill does propose that the public component will negotiate drug prices beyond what Medicare has already negotiated. In that sense, there is an opportunity for further cost reductions. Unfortunately, only a minority of Americans would qualify for the public option, at least in the early years, and so it's not clear that the reductions would spread throughout the system.

What the public option will do to greater effect is lower insurance rates, through its ability to compete with private insurers, and this reduction is likely to reverberate throughout the health care system more widely than changes in drug prices. As a non-profit entity, the public component can do this effectively. The insurance savings will therefore probably outweigh the drug price savings.

I don't believe the proposed legislation is anywhere near perfect, and there is legitimacy to the claim that it won't adequately control rising costs to the federal treasury. Even so, the competitive leverage exercised by a public option will have the overall effect of achieving a net reduction in overall health care spending, even in the face of increasing federal spending.

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But, you are not mentioning the fact that their drugs cost sooooo much less than ours. Wouldn't that be a major factor in their lower costs? And won't those costs go waaaaay up if the drug companies have to shift some of the R&D costs to them in order to make up for profits they will lose here?
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This is a myth that conservatives have used to fight health care reform. Drugs are not soooo much less expensive in other countries. Part of the reason it seems that way is we look at only a few drugs and things are differently structured in other countries. For example brand name drugs are 51% less expensive in Canada but generic drugs are 115% more expensive.

http://www.fraserinstitute.org/commerce.web/product_files/costburden2.pdf

Per capita health care costs in Canada are 48% less than in the US. If Canada were to pay the same price for drugs as the US it would amount to a 4% increase in their expenditures. In other words it would be 44% less expensive in Canada instead of 48% less expensive. The drug cost differential is a relatively insignificant part of the difference in per capita health care expenditures.

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I was tellin my friends about you Fred. Good comment.

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Good work, Fred. Nice commenting. And thanks for the quote information.

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I'm here, stilli, for one reason. To ask you to go to my blog and light a candle for Rowan's healing. Thanks!

Not getting into an argument over health care. I just want to see everyone getting it. And the insurance companies no longer able to deny care or rob people of rightful benefits. The larger the pool of people, as in Social Security, the better the outcome for all.

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Thanks, Thera...just want to make sure we do this in a responsible manner. Getting health care for everyone is an absolute necessity, but if it bankrupts the country in the process, what have we accomplished?

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Already lit a candle...Arthur mentioned it in chat, as you requested.

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I see your candle there, Stilli! :-)

This is true health care!

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Wars are bankrupting us!

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That too...I'd rather have health care for all than war, but I'm guessing we aren't going to be able to choose between the two.

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The military is a huge drain. What's that t-shirt phrase? "It will be a great day when our schools get all the money they need and the air force has to hold a bake sale to buy a bomber"

It's trite, but true.

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You're right that cost is an important element of the debate, but the proposed reforms are pretty much guaranteed to reduce costs overall, even if they increase costs to the government. That is because those increased federal costs are outweighed by savings to consumers. A public option is an essential ingredient of cost reduction, in that its ability to compete with private insurers guarantees that the latter will keep their charges within reasonable bounds.

Ive tried to provide more details in a post discussing the recently proposed legislation - http://tpmcafe.talkingpointsmemo.com/talk/blogs/fredmoolten/2009/07/the-house-healthcare-reform-bi.php?ref=reccafe

The take-home message for the reform legislation is that it would be failure to institute reform with a public option that would continue us on a course towards bankruptcy.

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Oh, Stilli, I howled all the way through that thing. If this guy ever had an original thought, he didn't keep it for long.

First of all, if I thought that our elected officials would actually be in charge of running a single payer system, I too would run screaming for a cave in the woods. I mean lately these guys can't even get hiking the Appalachian Trail to go well for them. Luckily for us, the job is turned over to people that actually know much more about running health care than the politicians. Can you imagine John Ensign working for the National Weather Service in charge of predicting where the hurricane is going to go? Well, by now he probably can. It will go wherever he lives right now. But you get my point. :-)

Other points:

We spend so much more on health care, even relative to other advances, mostly because it is worth so much more to us.

Umm, health care is worth exactly what it is worth. As far as benchmarks with the other OECD countries, the US isn't always last, but it's only first in one category that I know of. And that's early detection of certain cancers, like breast and prostate. So I'm not quite sure why mediocre to really bad care, with one flash of bright light should be worth so much more to us than people in other countries, unless we are just really stupid.

The Canadian Pill deal. You see, the company would never get back the massive fixed cost of creating the drug in the first place, and so no company would try to develop one.

Drug companies sell drugs. If they don't do R&D and develop new drugs, they won't have anything to sell when the patents run out on the drugs they have already developed, turn generic. It will probably go back to how they used to do it. From academia to the private sector, the scientists work to find the next cure for the next disease. When the cure starts to look promising, the government kicks in with grants and other forms of helpful monies. In return, the government doesn't have to pay as much for the drug if it does indeed cure the next disease. But this is the drug companies favorite scare tactic and propaganda, and this shill falls for it like a puppy in love.

Even the successes you gin up for them would not be possible without the last best hope of humankind (the US) on the front lines again making the miracles for the world.

Has this guy been hiding under the bed for the last 20 years or so. Not all geniuses are born in the US and many of the latest medical techniques aren't either. But it's not even about which country invents more. It's about the collaboration of scientists in all countries getting together to invent new technologies. Particle physics, which has contributed greatly to cancer therapies, is basically centered in Europe, but all nations contribute their scientists thinking to it. In fact, that's the reason the Internet was invented (by the government). To make collaboration among scientists easy and to share each other's thoughts in a productive way.

Anyway, the Nordic country’s touted “success” is going to go the way of the Soviet Union’s plan to bury us, as their changing demographics (far more economic diversity and an aging population) change their culture and show the cracks in their utopian fantasy.

They have been saying the same thing about the chances of China's success with a market economy and a socialist government for years, also. We're still waiting.

Doesn’t the already massive competition in health care keep things honest?” Of course, this leads to the uncomfortable conclusion that by their logic the government must be a major player in every industry.

Uh, no. Just the ones that have proven to be too big for the private sector to handle alone. Sorta like defense. Would you want Goldman Sachs or GM in charge of defending the country. Me either.

Finally, it cannot be a fair competitor if when the “public option” screws up (can’t pay its bills), the government implicitly or explicitly guarantees its debts.

To even come out with this after bailing Wall Street out, shows a complete lack of understanding of anything. How does this man go the bathroom alone?

That the schools provided by the government pale next to the private options, which themselves pale next to what we would have with a full private system (even if publicly funded) is beyond sad, but not the direct point here.

Guess he didn't read the report that the Bushies tried to hide. The one where public schools either matched or exceeded the benchmarks of the vouchered private ones?

We are not here yet, but in a world where the “public option” replaced all private options, would we still be allowed, if we had the resources, to pursue private medical alternatives?

Oh for the goddess of sanity's sake. It's not like Congress has disappeared off the face of the earth or anything. He doesn't wear the tinfoil on his head to encourage recycling, that's for sure.

Health Care is Not A Right.

Either is driving a car, but most people can afford to get a driver's license. They can't afford health care. Does it have to be a right for it to be accessible to all?

I blame this mostly on excessive regulation, a complex employment-based insurance system strongly encouraged by tax law, and litigation for the benefit of trial lawyers rather than patients or anyone else.

Huh. Personally I put a lot of the blame on stupid people like him. But that's just me.

:-)

THE END

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Whew! Thanks, Shell...I know what I put up was a lot to digest. Thanks for taking the time to read it and respond so thoroughly. I am having a hard time knowing who to believe any more...and my concern over the asshats we have in office isn't helping. I just don't TRUST them to do this wisely...

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Like I said, Stilli. The asshats legislate and fund it, the weather forecasters do the actual forecasting. Didn't I say something like that?

By the way, this policy brief from the OECD Observer, Science and Innovation Policy: Key Challenges and Opportunities, has good explanations about the trends in fundings, cooperation between countries and progress, if you're interested.

I really did howl most of the way through that "essay". It sounded like something from the Reagan years. I kept waiting for him to say something about the possibilities of a computer in every home, type of thing.

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I clicked your link, but can't get it to scroll...help?

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Make sure that your adobe reader is set for continuous, stilli. Not single page or facing pages, but continuous. It works for me, just fine.

If that doesn't work, can you click on the next page icon, instead?

seashell's out of ideas now.

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I am too angry to respond responsibly.

THE CAPITALIST SYSTEM, THE FOR PROFIT CORP ARE THE WRONG MODELS FOR HEALTH INSURANCE. PERIOD. END OF DISCUSSION.

People who manufacture MRI's, xray achines,.....

yeah they can be for profit with proper regulation.

BUT NOT HEALTH INSURANCE..........


they are liars, thieves, and killers.........they kill people every goddamn day. they kill people and management MAKES BILLIONS OF DOLLARS OFF OF THE DEATHS OF PEOPLE EVERY GODDAMN DAY.

oh hell, listen to Seashell here.

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To even come out with this after bailing Wall Street out, shows a complete lack of understanding of anything. How does this man go the bathroom alone?

Lol. Good arguments, btw.

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Thanks!

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I need to add this. I do not trust the Government one bit. But I trust the private sector even less and the large the company, the less I trust it.

The idea of putting my life in the hands of anyone whose only agenda is money scares the willies out of me.

Will not do it.

C

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With government, we have a chance to change our CEO/President every four years. Our Board of Directors/Senators every six. Our consultants/Representatives every four years. Within this structure with public demand, we can change pretty much anything.

With the private sector, CEOs change when they can't get any more cash out of the system of they're sent to jail. The Board of Directors is pretty much the same for the Top 50 or so companies, The rest of management? Untouchable. Well, we might get them out of "here", but they're then put over "there" within the same organization. That is assuming we ever even learn who they are.

Want to challenge a law, go to the media, the blogosphere. Want to challenge a policy or premiums in the private sector, go stick it up your @ss. After that, you can get an atty who will look even there to get more money from you. Odds are you will fail. But what about the atty? s/he will be a well-paid.

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One reason I don't post much lately is that much of my knowledge comes from reading books, some that I read years ago. I don't really have the time to do the on line research to recall the details of those books or to find the necessary links to back up my views. But this is an important issue so I'll see what I can do to address your link in the time I have available.

I can't deal with the whole article and since the only argument that seems convincing is drug costs and its association with R&D I'll focus on that.

Lets first consider average drug costs for several countries. While the US usually has the highest costs its not that vast a difference.

http://knowledge.wharton.upenn.edu/article.cfm?articleid=879

"A new Wharton study comparing average prices for pharmaceuticals in nine countries – the United States, Canada, Chile, France, Germany, Italy, Japan, Mexico and the United Kingdom – shows that average prices are highest in Japan, while prices in other countries are between 6% and 33% lower than prices in the U.S. Canada’s prices are the lowest."

The % of drug costs in the US is 11% of the total.
http://www.kaiseredu.org/topics_im.asp?id=352&parentID=68&imID=1

If the costs of drugs was the sole reason for differences in per capita spending the difference would be from 6% to 33% of that 11%. Considering Canada, the country with the greatest difference in drug costs, results in approximately 3.5% difference in per capita spending. Yet Canada's per capita expenditures is 52% of the US so clearly drug costs are not the determining factor.

Total health expenditures per capita, 2003

United States $5711
Australia $2886
Austria $2958
Belgium $3044
Canada $2998
Denmark $2743
Finland $2104
France $3048
Germany $2983
Ireland $2466
Italy $2314
Japan $2249
Netherlands $2909
Norway $3769
Sweden $2745
United Kingdom $2317

Additionally the cost differential fluctuates with currency fluctuations and when compared with GDP. (from first link)
"The study cited exchange rate fluctuations as a major contributor to drug price differences. The decline in the Canadian dollar in the 1990s, for example, accounts for 19 percentage points of the 33% Canada-U.S. price differential. In addition, when drug prices are compared using GDP purchasing power parities, which standardize for cost-of-living differences, the Japan-U.S. differential disappears and the Canada-U.S. differential shrinks from 33% to 14%."

A very small part of the difference in per capita health care expenditures is related to the drug cost price differential. As a small portion of any nations health care expenditures is drug costs.

I'll get into what I see as R&D fallacies in a couple of hours.

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In general, I agree that a relatively small portion of our health care expenditures go to pharmaceuticals, however that portion has been growing for us and most OECD nations. Admittedly some nations suffer more than we do, often because


Generally, pharmaceuticals account for a greater share of health expenditure in low income OECD countries, partly because they carry international market prices whereas other elements of the health bill, such as wages for medical staff, are determined more locally.
I disagree with your contention that:
While the US usually has the highest costs its not that vast a difference.
According to this OECD publication of the same era as your cited article:
US spending per head on prescription drugs and over-the-counter medicines in 2001 came to US$605, almost double the OECD average of US$340 and almost four times the Mexico figure of US$152.

also,
The higher cost of drugs has increased the share of the total health budget devoted to pharmaceuticals in most OECD countries, the latest edition of the OECD’s Health at a Glance shows.


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p.s. This report puts the excess the US spends on drugs, (above a developed 'Estimated Spending According to Wealth' metric for OECD nations at $66B or about 14% of the total we spend above what would be predicted sans our current healthcare system.

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Having been working in the 'life' insurance industry for a couple of years I have had to learn about people's health conditions and the medications that the take.

And one thing I have observed first hand with my own mother as well as with many eldery is that they are put on meds they don't actually need and some that in fact compromise their health.

And this appears to be epidemic among elderly and I am assuming that doctors and pharma benefit when a patient is prescribed a new med that they will have to take for the rest of their lives... It's like buying a car... a long term income guarantee.

For my mom, she was given high blood pressure meds even though she had no high blood pressure. When she asked the cardiologist about it he just told her everyone needs to be on hbp meds at your age. That was a year ago... she developed a rapid heart rate during a challenging divorce back then.

Last month she was hospitalized with stroke like sypmtoms and we discovered she had dangerously low blood pressure. That was the main source of the problem. Solution. No more high blood pressure medication.

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Perhaps someday, I'll tell the story of how a specialist once recommended I undergo a course of chemotherapy even though I had two pathology reports come back negative for cancer.

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Piggy, I know you are REALLY up on this stuff...How do I counter the arguments made in the essay...I just get all emotional and crying over how unfair the current system is...I'd like to have rational rebuttals.

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Myth #1 Health Care Costs are Soaring- Asness, (love that name), asserts that healthcare costs aren't actually increasing, but our use of services are. He is wrong and right on this one. Healthcare costs are increasing, but our use of services are not different and if measured in terms of doctor visits/capita are quite a bit less than much of the rest of the world's.

Myth #2 The Canadian Drug Story - Asness cites 'fixed costs' of getting drugs developed and approved in the US as accounting for much of the inflated costs of drugs in the US. Believe it or not, we're not the only country that has a drug approval infrastructure in place, and it's not that much more difficult to navigate than other OECD nations, so I think he's largely blowing smoke on that one. He goes on to assert that the drug companies sell their drugs below cost in countries with singlepayer systems such as Canada, and that discount is subsidized by the US paying higher prices. To this I say BULLSHIT! No company sells it products at a loss in the hopes of making it up from some other rube. He also talks about the cost of developing "miracle pills". Google Marcia Angell, New York Review of Books, "The truth about Drug Companies", to see what their version of a miracle pill is. His contention boils down to that we need to subsidize drug inventions for the rest of the world. If that's what's happening now, then we should stop subsidizing that immediately. The free market is theoretically capable of filling that vacuum after we leave the corporate subsidy model of pharmaceutical development.

Myth #3 Socialized Medicine Works In Some Places - This boils down to a rant on free market economics and how they'll solve our problems in healthcare costs. This runs counter to .
what most every economists, and just about all health economists have understood to be the case for nearly 45 years.

Myth #4 A Public Option Can Co-Exist with a Private Option - I'm gettin' tired of shooting holes in this turkey's arguments here SI. Anybody who describes their opponents as a "junta", is an ideologue. If you want to give this dude credence, be my guest. I've got better things to do on this Saturday night. Cheers!

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I'll agree with part of Asness's argument, in that the problem is multi-headed. Single-payer alone will only cut out the overhead created by our inefficient multi-payer system. Much of the rest of the savings will accrue from bringing treatment into line with outcome based protocols, which docs should be allowed to override at their discretion, (with an eye on conflict of interest situations, such as prescribing docs having ficuciary relationships with labs processing prescribed treatments). That will of course be easier to administer in a centralized system of health care. This is the what seems to be the old saw about the gumint standing between the patient and treatment. I would counter by asking whether you would prefer to have an insurance adjuster at your insurance company determining treatment based on the company's quarterly report or the gumint with their outcome based protocols?

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Thanks a lot for responding, Piggy...I know you must be getting really tired of all this over and over. I really appreciate the info.

My husband and I have been discussing this a lot lately. We are on the same side of most issues, but on this one we are not. I couldn't rebut the claims Cliff made. Since they (along with the editorial comments from my husband) made me feel like I was hearing an uncomfortable truth, I came to you guys for your opinions.

Part of my hesitancy concerning single pay comes from distrust of the government. How sad is that? Yet, I don't trust the corporations either...sometimes it is just hard to know what the truth is.

Thanks again for your continued willingness to educate me!

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He goes on to assert that the drug companies sell their drugs below cost in countries with singlepayer systems such as Canada, and that discount is subsidized by the US paying higher prices.

I am no economist and I'm certainly no healthcare policy wonk, but this is an argument that makes absolutely NO sense to me.

Why bother selling to the Canadians at all if they are making no profit or losing money? Does anyone here think they are doing it out of the goodness of their heart? Out of some sort of moral duty? Wouldn't it be cheaper for them to NOT sell to Canada at all?

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US spending per head on prescription drugs and over-the-counter medicines in 2001 came to US$605, almost double the OECD average of US$340 and almost four times the Mexico figure of US$152.
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The study I cited and your study are looking at 2 different things. The average cost of drugs in different countries and the spending per person. I think its quite likely that more drugs are used in the US then in other countries especially poor countries. That would increase the spending per person even if the average cost of the drugs were not extremely different.

Its not hard to find several sources for the 6% to 33% price differential in drug costs comparing the US with other industrialized nations. Keep in mind my sole point was to dispute the contention that other nations per capita spending on health care was made possible by the drug cost differential and that was essentially a subsidy provided by the US. Given that the per capita spending is so much greater than the drug cost differential that is clearly not the case.

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Check. :)

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Hi Stilli, Haven't read the whole thing (just started), but the very first line in the blog is a misquote. So I'm already leary:

Will Rogers famously said, “It isn't what we don't know that gives us trouble, it's what we know that ain't so.” So it is with the health care debate in this country. Quite a few “facts” offered to the public as truth are simply wrong and often intentionally misleading.

Um, I'm pretty sure that was Mark Twain. One of the most famous things he ever said. So, I'm going to continue reading and comment on my comment. But it's already stumbled for me on the first line!

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Well, You and Cliff were both wrong...It was Josh Billings, as Fred pointed out above. An easy mistake to make, even if you google the quote, so it doesn't affect the validity of the points made in his essay...

BUT, I'm still looking for counter arguments, so I hope you'll have some!

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lol, I googled it and the Quote Verifier backs you up. Maybe typing before thinking (or researching) is a disease with no cure. Ok, I could take a breath and then type, but oh well.

stilli, I haven't read the comments above yet. So I'm going to try to give you my thoughts as I read the blog without the influences of even DD (yeah, I even took notes, though if I regurgitate them below, I'll leave out some of the wry comments and cursing). I can't debunk them all right now, for there's the time thing and I'm sure there will be other takes too.

So here's my rundown:

#1. Not true. Here's the calculated numbers from the Dept. of HHS (http://www.cms.hhs.gov/NationalHealthExpendData/downloads/nhegdp07.zip). I looked at their EXCEL file and year-by-year, from 1960 to 2007, health care expense as a proportion of GDP has gone from 5.2% to 16.2%, or more that 3x. I plotted it out and it looks like it rises about 4% each year. That sounds like inflation, but it's not. It's an increase of 4% of the entire GDP year-by-year.

#4 "Doesn't the already massive competition keep things honest?" Not really. There are a lot of examples and here's just one: Money, especially drug money, has already corrupted many diagnoses. There's a reason that physicians often give drugs instead of solve problems these days: http://www.pubmedcentral.nih.gov/articlerender.fcgi?artid=1126053

#5. Rationing. This one doesn't make the least bit of sense to me. There's no backup, just pronouncing a public option system to be rationing. Negative term with no reasoning.

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Which brings me to Cliff's language. In Cliff's world, Capitalism (capital C) is the best system in the world. It's freedom. It's America. So let's break down some scary words that impinge upon America. Or, let's call them the boogieman language in the blog.

socialized. Used over in over. It's scary.

less free. Like "socialism makes us less free" 2 strawmen dancing, if you ask me.

rationed. Boo! Think WWII people! Think the Soviet Union!

Compares Congress to Russian commissars if they micromanaging healthcare Here we are giving the dear reader the spectre of communism. Putin will be running our health care. And, just so you know, Putin is bad.

ACORN. Uh oh.

people who want free healthcare are beggars. We don't want free healthcare. We just want it for everyone. We all know there's a cost.

Communism. (rhymes with mommunism)

gulag a very scary word. Problem with me is that it reminds me for some reason of Guantanamo.

NASA. The typical Right ploy to mock NASA (and science too, but I'm working on that for a future post.)

leftist media. yawn. If he said 'inept' and 'unethical', I'd agree. But that's a story for another day.

freebies to the president's friends. Not sure what he means here. Just seems to accuse Obama of what Bush blatantly did all of the freaking time.

suppression of liberty. (again, hypocritical. (my list had the f word a couple times and a lot of exclamation points, btw))

excessive regulation. As if de-regulation is completely great. I mean, America is great because of years of deregulation, right? No problems anywhere. Oh, you mean there's a problem with the financial markets? Oh, they'll fix themselves. We'll just find a way to get Americans to get in even more debt easier and things will be ok. I'm sure.

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The character of the language tells us much. If Cliff wants to make an argument against single-payer or the public option, I can think of a few valid points that can be made. However, when the main support for your argument are buzzwords and tired frames, it comes off as shaky.

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I hope I don't seem to mocking of the other blog or Cliff's arguments. But my impression of the entire blog was that there were very few reasonable, rational arguments given at all. It was a blog that evoked fear and mistrust through language imagery. But where's the substance?

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Oceankat - That's useful information. I agree that drug costs are a relatively small fraction of total health care costs, but still large enough to make a difference, and therefore worth reducing via the negotiating leverage of a public option component of healthcare reform. Regarding R&D, I've previously posted on this topic, and some of that material may complement what you had in mind - http://tpmcafe.talkingpointsmemo.com/talk/blogs/fredmoolten/2009/06/prescription-drug-costs-can-be-2.php

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I agree that lowering drug costs is a valuable way to lower health care costs and it can be done without hurting R&D. Again my point in discussing it was to argue against the idea that the price differential was a significant cause of the difference in per capita spending and amounted to a subsidy from US R&D. It has a very small effect on the difference in per capita health care spending.

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Stilli,

Ironically my impression is that this man is ill informed and doesn't know it. And as he write about the issue being what people think they 'know' and are mistaken about... well there's the irony.

I do appreciate your asking us to look at the ideas though. I like that about TPM as well...

I also believe a single payer healthcare system will be better than what we have now and I don't trust the private insurers and I think they've been doing a pretty weak job and making pretty hog heaven profits... while doing it. Much like the CEO's on wall street.

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Stilli, we thought you were in chat. Larry made these initial comments and I copied them before they scrolled into chat heaven.


  • LarryH Yes. I just finished Stilli's reading and I have a few questions.

  • LarryH Well first - is it just me or does this guy sound like a high school debater who is running a spoof site on the internets.
  • LarryH Second - He is a former Goldman-Sachs "research" executive. Can you say bullshit?
  • LarryH Third - Isn't this exactly what you would expect from a charlatan investment consultant?
  • LarryH Fourth: Stilli - Why would you want anyone to read something as adolescently un-sophisticated as this? I mean his rhetoric is mush.
  • LarryH I'll stop there.
  • LarryH OK. Now I'll catch up on comments.
  • LarryH Well. My bottom line is this: How many times to these guys get to get it wrong before we just stop listening?

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    Thanks, Shell...I've been bouncing back and forth, but missed his comments...I'll check in.

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    I started to read this and got to Myth #1 and stopped right at the very first line.

    Please excuse me for assuredly stepping in shit but I find it absurd that you were asked, apparently honestly, by your significant other to read this with an open mind. WTF!!!

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    stilli, I can't even get through this insufferable essay by Clifford Asness (Clifford Asshat is more like it), and it's not because my politics differ from his. It's because he offers no facts whatsoever in his tedious introduction or the entire first myth! He provides bogus hypotheticals (a lame and repetitive reference to the 1950s) along with major attitude. If he doesn't take his audience seriously enough to provide some facts to back up his assertions, then we shouldn't take him seriously. By the end of eight snarky paragraphs, he still doesn't take the issue seriously enough to provide facts. Maybe the guy is a fraud. Life is too short to read frauds.

    I am suspicious of people who feel compelled to identify groups of people by ethnicity and stereotype: In what I've read so far, he referenced Cubans and Italians specifically. Since it's not imperative to identify any ethnic group in the healthcare debate, I suspect Asshat is a bigot in private (if not in public as well). I can't abide bigots. Life is too short to read bigots.

    Finally, his company is a hedge fund! He speculates for a living, so no surprise he's allergic to facts. And he has a vested interest in things staying exactly the way they are.

    His company's holdings include pharmaceutical and biotech companies such as AmerisourceBergen, Amgen, and Johnson & Johnson.

    Another interesting tidbit:

    After grad school, Asness landed at Goldman Sachs, where he spent a year and a half trading mortgage-backed securities on the fixed-income desk while finishing his dissertation.

    What I've learned from the financial crisis is that mortage-backed securities + Goldman = Not in my best interest. We should trust another former-Goldman genius to tell us how to run this country? Enough already!

    But wait, there's more to learn about him (there always is):

    The computer model (he) developed -- and which, after many refinements, they still use today -- grabs a wealth of up-to-the-minute data to identify the cheapest value stocks (Fama and French), but only value stocks that seemed to have started on an upward swing (Asness). They buy a large block -- about 200 to 300 -- of those stocks. Then the model identifies stocks with the opposite characteristics: growth stocks whose rise is stalling. They sell an equally weighted amount of those stocks short.

    The Asness portfolio is perfectly balanced between longs and shorts. That is what makes his fund ''market neutral.''

    Asness and his colleagues soon discovered that the strategy they had come up with worked not only with stocks but with currencies, commodities and even entire economies. In time, they developed models that sorted out cheap versus expensive in all kinds of different investments.

    In 1995, Asness's group started an internal hedge fund for Goldman partners and a few clients, using the new model. The fund did so well that the firm rolled it out and began to market it. Within two years, Asness and his crew had $7 billion under management.”

    Short selling? Just no. The guy plays with computer models. He doesn't care about human beings. He cares about making money. That's it.

    Three strikes and you're OUT in my book. His "points" are INVALID. I'm sorry, but no, he doesn't get to have a consequential say in the healthcare debate that affects real people.

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    I knew I could count on you, Blow...Thank you so much for your research. I knew he was a GS guy (but I didn't want to shoot the messenger without at least considering the message!) THIS is something I can use to argue with...

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    stilli, you'll always be my favorite reformed Republican. ;-)

    When you're in doubt about an article like this one but at a loss to say why exactly, it can be helpful to check out someone's credentials and background to get a sense of where they are coming from and what they have to gain by taking a certain position. If the person is obscure, such research can be a little time-consuming. Usually, however, there's a wealth of information available online: personal bios, company profiles, book reviews, Wikipedia (which often provides links to original sources for verification), online newspaper articles, historical sources, and even excellent blogs that specialize in certain fields. Just start with Google, and before you know it, you will have a finely calibrated b.s. detector!

    I was trained to do this kind of research for my work (writing and fact-checking nonfiction magazine articles) and I adapted the habit for my personal interests, like following politics, about which, like you, I sometimes feel uncertain and woefully underinformed (believe it or not).

    But your gut is a good source of information too. You have a very strong moral core, and you are in the process of shedding the cultural bugaboos that other people have attached to your moral beliefs without your realizing it. I think what you are doing now—reexamining the bugaboos and exploring other sources of information—is totally awesome and I have nothing but the highest respect for your endeavor to seek out the truth. Your effort is honest, and that's what matters most. With each others' help, perhaps we'll find the answers we need to solve the problems facing us.

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    Jeez, Blow! We've come a long way in a year, haven't we? Thank you for your comments. I hope I can live up to them! And again, thanks for the research. It is very helpful. I hope you don't get tired of hearing how much I appreciate your mentoring me here. You made me a better poster and you continue to make me a better thinker.

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    Why are you worried about single payer? I don't understand why you are falling for scare stories about it as it's not going to happen right now, and furthermore, it won't happen at all if a public option (and Medicare) don't show good performance with both cost and coverage under the new law. That was the point of both Hillary and Obama's plan when they were running for president: incremental transition, the idea that people will be sold on the government doing it better and shouldn't be forced into doing it, that forcing them is impossible and self-defeating, but that they will eventually want single payer or something similar of their own volition by virtue of how well they see a trial working compared to for-profit.

    It's just not going to happen now, that's not in anyone's plan and it wasn't in the stated plans of the two major Dem candidates, either. Those trying to scare you about it are making a straw man to distract and to get their libertarian base riled. Here's a summary of the House Bill by Maggie Mahar on her Healthbeat blog, for instance. See how it says The details of the House bill make it clear that Medicare reform will pave the way for healthcare reform as Medicare leads the way by changing what we pay for, how we pay for it and how healthcare is delivered. and Private insurers will be regulated and Payments to primary care providers will rise. Payments to other providers will not be cut across the board.?

    We're not going to single payer anytime soon. We are going to be transitioning toward being able to do it, but it's still not a sure thing that even that will be a success. It depends how things work out. If they fail at the transition, we won't be going at all, i.e., if they can't figure out how to slow the projected spiraling costs of Medicare for the boomers and at the same time attract enough physicians and other health providers to take it. If they end up like Massachusetts universal coverage is doing right now (not single payer, but universal), for one example, we won't be going to single payer at all for quite some time. They have to do better than that or it's not going to happen.

    I wouldn't worry about single payer from the side of being fearful about it. If what they are trying works like it's supposed to, we will move naturally to single payer because the public plan is being chosen by nearly everyone and because private insurers are dropping out because they can't compete. It's not going to be forced on anyone. They've got to get the cost and coverage reform of Medicare done first for the boomer generation. Then they will have a good model to work from to attempt single payer if that's what the majority still wants. The people who are rightly worried are those who really want single payer right away, it's a pretty sure thing they are going to see their dreams fulfilled.

    What you are probably going to se is much more input from a government panel of doctors etc. with recommendations of what should be standard coverage for all insurers. And many insurers will no doubt be quoting that like the bible to any policy holders who complain. But at the same time, that's not going to keep any insurance company from offering plans that give much more at much higher price if they want to. It's really the same situation now, if you have by some stroke of luck gotten the golden care insurance plan, you can still pay for and get that golden care insurance plan that's supposedly so much better than like, Medicare. I don't see many people bragging that they adore their health insurance right now, that's it's perfect, but I guess there are some out there that feel that way. My guess is those who say they are thrilled with their coverage haven't had any major illness, hah. In any case, nobody is going to stop them, wherever these rare birds are, from continuing to provide the miraculous coverage they are supposedly providing, at a higher fee than a public plan.

    P.S. I recommend you read Ms. Mahar's blog if you want the straight skinny on individual related issues, if you get involved in debates like this with friends or family, rather than spend a lot of time reading opinions of anonymous bloggers you don't know or trust. She won't lead you wrong, she is not an ideologue, she's a long time reporter on the beat health insurance and health care industry in the U.S.A. She debunks spin rather than offering it, spin from all sides:
    http://www.healthbeatblog.org/
    Of course, she is for reform, anyone right left or center who has studied our health care system in depth knows it needs reforming, anyone who says it's not is just full of bullshit (either that or they have the same rare sweet deal of health coverage as our Senators do and want to keep it that way, hah.)

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    Thank you for the pep talk, artappraiser...I needed it.

    Yes, fear is a big part of the discussion. My trust of and respect for the government is at a new low. I don't know who to believe. This essay certainly feeds that mistrust. I am sure I am not the only one. I will follow your link tomorrow when my brain is functioning at a higher level than it is right now.

    I DO currently have a top notch health insurance policy, although it is untested as far as actual coverage goes. We have been blessed with good health up to this point, and have never had to fight for anything. My husband will qualify for Medicare in two years, and I will in eight. We will be able to afford a Medi-gap policy. Regardless of what happens in this debate we will probably be okay. My concern is for my children, their children, you, your children.

    I want everyone to have coverage, and I want them to have it at a price that won't bury the country financially. I want the politicians to know what they are talking about when they vote, and do their very best to get it right.

    If we don't ask questions and make our decision to support or not support based on good information, how can we direct them?

    Thanks for your contributions to that effort. Much appreciated.

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    Hi, Stilli. Nice post showing a sincere desire to get the facts right.

    Cliff has it all wrong, but before I reiterate what others have said above, let me tell you about my trip to Texas in February to visit my father just days before he succumbed to lung cancer.

    I meet no fewer than seven drug company representatives at airports and on board my flights during that one round trip from St. Louis via Dallas to San Antonio. These people, with whom I became acquainted at random, represented more than HALF of all the passengers I met during these flights. Extrapolating these numbers means that thousands—if not tens of thousands—of pharmaceutical sales people are flying around the country each day to visit doctors and hospitals in search of more sales volume.

    In short, the drug companies are spending truly MASSIVE amounts of money promoting the doping of America. In many cases, these drugs have side effects that far outweigh any benefit that might be obtained by using them as directed. The side effects also create NEW COSTS borne by consumers and the delivery system overall.

    I wouldn't worry about the drug companies. Their R&D is largely paid for by taxpayers through research trials funded by and conducted under the auspices of the National Institutes for Health.

    I will not drone on. Cliff is mistaken purposely. He is making an argument, not presenting facts.

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    Think about it this way: If health care is costly, so is the alternative.

    Without heath care, we are a morally bankrupt society.

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    I love the perspective you are bringing to things lately... the heart and spirit/soul of the matter:)

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    Cheers, to the many who fought their way through this (homework) assignment. I almost quit when I saw his footnotes weren't footnotes at all. Determined to fulfill my commitment to you I drudged onward through the mire of factless swill.

    You have done well to bring this here. Through your inquiry and the responses of others, you have amassed a page worthy of bookmarking. This is a collection of facts and thoughts on a subject of gigantic complexity and these contributions will be an invaluable resource for all of us as we carry the fight forward.

    Thank you Stilli et al.

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    Fear not Stilli! Single payer or the bogey man of "socialized" or "government run" healthcare is just that: a bogey man, a phantom, a scary myth.

    I saw an ad the other day featuring some woman claiming to be a Candian citizen who had a brain tumor and would be dead had she stayed in Canada and waited for years before getting the operation she needed. I was amazed to see such blatant lies on the air but there are a lot of people with a lot to lose if we get a healthcare system designed to serve human health needs and they'll do anything to preserve the cash cow they have found in our system of healthcare run for profit. It was very scary story but also false, but the businessmen who profit don't care about the truth. They care only about their money.

    The truth is that we already have rationing and bureaucrats deciding what we can and cannot receive by way of medical care. It's just that they are the employees of private corporations so when Americans are denied care of blocked from receiving the treatment they need it is solely for the purpose of maximizing profits. It is beyond question that our government run single payer system known as Medicare is cheaper, more efficient and those who use it are more satisfied with their healthcare than are those who have for profit health insurance.

    I have found no credible stories of people in countries where some form of single payer exists where people are denied treatments or medical care of any kind or where they have to wait for treatment of any serious medical condition. That's just a pack of lies. What I have heard is the opposite, that if you have a major condition, problem, etc... that the care is superb, quick, and thorough. But, it is for routine things, that such systems have an annoying tendency to be a hurry up and wait situation. Seems like a pretty good trade off to me if trade offs must be made.

    Here in our great country, you don't have to wait if you have limitless funds, but if you are an average American or (God forbid) if you are poor you may as well forget getting the treatment you need in case of serious ailments/disease or if you just have a non-serious condition. People die in the US every single day because they are denied access to the healthcare they need. Kids suffer daily because their families cannot afford to take them to the doctor.

    Many people who valiantly do whatever is necessary to get the treatment a family member needs lose everything and go bankrupt in the effort to obtain medical treatment. Not one person in Canada or any other country using some form of single payer files for bankruptcy due to medical costs. In contrast, that is the number one cause of bankruptcy in the USA. This is all because our system of health care is run by insurance companies for profit and if it takes denying people the care they need up to and including killing them as a result of their being unable to get treatment from the insurance bureaucrats then so be it. The insurance companies couldn't care less. The best, most efficient, morally defensible and common sense system for healthcare is one in which the profit motive is entirely eliminated and that meanss some form of single payer. It's just that simple.

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    Thanks oleeb...you guys are getting me less afraid. I knew y'all would. After reading all these comments I would comfortably be able to re title the post "A Pack Of Almost Believable Lies."

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    I couldn't make it all the way through his article. He and I are starting from two opposite base opinions for one thing. For another, he didn't offer one fact. Not one. No statistic, no references, no links. He's just spouting off.

    A couple of things he said got me thinking. The first is the cost of drugs and how the poor United States companies develop drugs for the rest of the world. I have a friend that works for a pharma company in England and also know that France has been on the cutting edge in the development of a bunch of drugs, so I went looking for some evidence to rebuke the author's claims. I found these.

    http://en.wikipedia.org/wiki/Pharmaceutical_industry#Market_leaders_in_terms_of_revenue

    http://en.wikipedia.org/wiki/Pharmaceutical_industry#Market_leaders_in_terms_of_sales

    Companies in the United States do make up the bulk of the top 20 in both categories, but there are plenty of other countries in the mix, developing and selling drugs. How are they possibly surviving in countries that have "socialized medicine?" I suspect they're surviving just fine, just like our own companies will survive health care reform. The authors chicken little predictions of no new drugs and rationing of care are silly.

    Second point: comparing a public health care option to our current public school system is just stupid.

    Public school funding comes primarily from property tax revenue, which is why schools in poor areas suck and schools in wealthy areas do not. That may seem like an oversimplification, but it's the truth.

    So, the only way that his analogy works is if not enough healthy people opt in to the public health system. Hillary Clinton was worried about this, which is why her campaign health care plan mandated participation. The healthy have to pay premiums, just like we all pay our auto and homeowners premiums, even those of us who never file a claim. The drivers who never have an accident are paying premiums to cover the drivers that do. If you're one of those accident free drivers, you may think it sucks. But your insurance will kick in if you ever need it. That's the point.

    As for rationing care, it's already rationed. Have you ever spent way too much time on the phone with somebody sitting behind a desk at an insurance company, arguing about whether or not they're going to cover what your doctor thinks you need? I have. More than once. And the reason they don't want to cover it is that it takes away from their bottom line.

    If I have to argue about what is and isn't covered, I'd rather know that it's because there's a scarcity of dollars and other people who are sicker than me are getting those health care dollars instead of wondering how much money the executives at my health insurance company make and what they do with all that cash.

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    Thanks for trying, Orlando! I probably wouldn't have made it as far as you did if I hadn't been prodded by hub! Your thoughtful response goes a long way in allaying my concerns/fears...

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    P.S. As for why people who send their kids to private school have to pay property taxes that fund public schools, it's for the same reason I pay property taxes even though I don't have kids and why my aunts and uncles pay property taxes even though their kids are done with school: we all have a vested interest in an educated public and therefore we all have a responsibility to contribute to the public fund that pays for education. This guy is a total freaking idiot. Is he for real? With a name like that, it's very possibly satirical.

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    Orlando and Stilli,

    Did you notice that in the top 20 companies that are listed, only 12 are actually located in the US?

    Specifically, Pfizer, J&J, Merck, Abbot, Wyeth, Bristol-Myers Squibb, Eli Lilly, Amgen, Schering-Plough, Baxter, Genentech and Proctor and Gamble are US Companies.

    The other 8 are located in the socialist countries of the UK, Switzerland, Germany, France and one in Japan.

    Huh. Who wudda thunk that?

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    Yeah, I noticed. That's kinda my point. :)

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    At this point, Stilli, I have nothing to add other than thanks for bringing such drivel to light so it can be shot full of the holes it so richly deserves. Would that the purveyors of the nonsense involved, and their trolling, sockpuppeting acolytes, could face the same fate.

    Thanks again.

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    A personal hero of mine, a very strong individual of rare intelligence, achievement, and the toughest moral fiber, had the thoughtful comment below.

    And it's fortunate that he approached it in an organized fashion, and didn't simply blurt something out (however apt albeit) such as, "Overreach THIS!"

    http://www.youtube.com/watch?v=83FvLjsUOJg&eurl=http://tpmdc.talkingpointsmemo.com/&feature=player_embedded

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    Thank you, OT...I've said several times around here that I hope he never asks me to join the Army, because I'm afraid I would have to do it. Thanks for the reminder about why I voted for him...

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    I've said several times around here that I hope he never asks me to join the Army, because I'm afraid I would have to do it. Thanks for the reminder about why I voted for him...

    Oh, I liked that. More than "liked", I was moved.

    I've been commenting in another thread about "Sickos" - a term the poster used to describe Senators whose recent actions displeased him. I argued that to call adversaries "sickos", "liars", "sellouts", and the like was not the best way to convince them to change their ways, or to convince the public to pressure them to change.

    The video of Obama's talk, as well as the nature of comments in this thread, show us another way. They demonstrate that when advocates speak to each other in reasonable fashion, presenting evidence, and adopting a civil tone, they stand a far better chance of persuading open-minded audiences to take their views seriously. They demonstrate that it is possible to be passionate about something, and even angry over obstruction efforts, without losing your dignity or your ability to act like a reasonable adult. In that sense, Stilli, what you have started here with your post can serve as an example of how TPM can set a standard for other blogs to emulate.

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    They demonstrate that when advocates speak to each other in reasonable fashion, presenting evidence, and adopting a civil tone, they stand a far better chance of persuading open-minded audiences to take their views seriously.

    I find that to be true of many people I encounter in the blogosphere and daily life, Fred. But I don't think that picture of the rational, public-spirited deliberator represents a realistic view of most politicians. Politicians are hired legislative guns whose positions are determined by the coalition of interests they serve, and the cores of those coalitions are much narrower than either the general public, the politicians' "constituents", or even the totality of people who voted for them. The core coalitions they represent are those small groups of powerful individuals and institutions who are chiefly responsible for getting the politician his job, and keeping him there.

    Politicians are skilled at presenting arguments in public and to the public, like the Sophists of old, but those arguments are often prepared for them by policy shops, lobbies and think tanks, who hire communications specialists, speechwriters and policy engineers to formulate the arguments that support pre-determined policy commitments. Politicians are themselves often too busy to engage in independent thought.

    Shame, outing, electoral pressure and money are likely to be more effective with them than arguments.

    And in my view, most politicians do lie frequently, and routinely and habitually distort the truth in a variety other ways. It is the nature of their job and way of life.

    That doesn't mean that there is no role for deliberative rationality in our system. It is the job of intelligent members of the public to debate, weigh evidence and deliberate, and to try to convince their fellow-citizens of the soundness of their conclusions. But the politician is just a vote-trading and vote-casting functionary, and the public's proper relationship with politicians and legislative bodies is just to achieve control over them so as to compel them, through whatever coercive means we have available, to serve our interests and satisfy our preferences.

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    If I may paraphrase from the Jules character in Pulp Fiction,

    "Ooooh, check out the big brain on Dan K! [That's right, Dan K, the *metric* system!] You a smart motherf***a!"

    But anybody's who's checked out Dan K's commenting already knew that, of course. Well said!

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    Dan, if you view the Obama remarks that Stilli linked to, I think you'll see that they illustrate the point I've tried to make. The issue is not the moral status of politicians, which is below that of the angels but higher than you're willing to concede. Rather, it is the principle of promoting a position in the manner most likely to succeed. Obama seems to be quite good at that, and his success should serve as an example to others.

    Others should view the video and draw their own conclusions.

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    I don't want to take credit where it is not due...Overreach THIS! gave us the link to the Obama remarks.

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    You're right. OT linked to the video, and you commented on it. I was particularly moved by your comments, because they denote a person who is herself capable of being moved by the genuine and honest convictions of others, and whose soul is not yet so poisoned by cynicism that she is incapable of trust.

    I suppose that makes me a sucker of sorts, but I admire people who would rather be fooled than fool others.

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    It all depends who the audience is. Obama's rational arguments are good for many a Harry and Loiuse sitting in their living rooms, and good for the public discussions in the op-ed pages. But once we have had enough discussion to know what we want to do, then the job is to get politicians to enact the policies we would prefer. They frequently don't do that, so pressure is needed. Politicians are highly political animals and often respond best to brute political force. Most of them are extremely practical people, not deep and reflective thinkers. Calling them out publicly, embarrassing them, pointing out which health care concerns have contributed to their campaigns and belong to their circles of friends - these things can be effective. They will whine and complain ans stamp their feet about the pressure. But in the end they adjust their sails to follow the political winds, if the winds are strong enough.

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    Fred, what you've stated here is not how you're coming across on the other thread. You've been chastising and castigating and arrogant over there. Maybe the thread just pushed your buttons...I've certainly never seen you make comments like that before. And we all have moments when our buttons are pushed and it's hard to take the high road. But before patting yourself on the back for urging others to change their tone, you might want to go first.

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    Orlando, I believe the "chastising" you refer to is/was an appropriate form of criticism in the context of the other post, but I would leave it others who approach healthcare without predetermined views to judge that for themselves.

    Rather than tout my own ability to make the point, however, I would recommend, as I did above, that viewers watch the Obama video, which makes the point I tried to make far better and more graphically than I did.

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    The call for civility is much welcome.

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    I much prefer a civilized debate to those that devolve into pissing contests (particularly because I lack the prerequisite anatomy to compete effectively) but posters lack the ability to control that in their blogs. This weekend we just had a mellow group, or maybe those that prefer to fight rather than discuss didn't want to put the time into reading the article...who knows? We got lucky...

    I sure appreciate the time everyone took to read the lengthy piece, then put together thoughtful responses. I really got a lot of out of and am now equipped to face the coming week with a lot more optimism.

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    "If you think education is expensive, try ignorance." - Derek Bok, former president of Harvard University

    Substitute "health care" and "wealth care" for "education" and "ignorance" respectively, and the same point stands.

    Asness, as I sense you suspected, is disseminating propaganda rather than information. You should have plenty of bullets in your forensic gun the next time someone brings you tripe like this, camouflaged as objective analysis. :-)

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    I miss you Boyd. Please come more often.

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    I stopped at Objectivist.

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    I know...it was tough, huh? Thanks for trying.

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    This is Cliff Asness.

    So sad. A burgeoning mind almost destroyed by Leftist dogma posts "gee, this Asness guy makes sense, what do you guys think”, and you Stalinists rise to the occasion." He's evil. He's a, God no, Objectivist. He offers no facts (I say that at the beginning of my piece it's just reasoning - you may disagree but you can't pretend I didn't say it). Basically, you shout this poor inquiring soul down. This was mostly the efforts of Fred Moolten, the apparent doyenne in charge of keeping the proletariat from thinking on this site. Well Fred, footnote #1 in my latest updated draft is all about you and your insane obsession with my attribution to Will Rogers. That was truly comical to read. Also added in this draft is an analysis of Fred's other brand new (sarcasm) point that socialized countries pay lower cost/GDP for health care. It's a bad point, and Fred's a bad guy, but hey, hopefully some of you with an open mind will ignore him and think for yourselves, just like the initial inquirer whom you all mostly crushed for asking the right questions.

    New updated essay: www.stumblingontruth.com

    Comments with substance welcome. Fred, please send me a detailed analysis of the probability that Will Rogers said the quote in question, along with footnotes. Perhaps you can get a stimulus grant to study the subject?

    Fred, you’re a pathetic fascist socialist (they go together) shouting down those who disagree with your humorless slathering antipathy for free thought. But aside from that you seem like a good guy.

    If one person reads this and questions Fred's Leftist religion it's a success. Already got half a success with the original poster. Thanks all, some of these comments were even useful.

    -- Cliff

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    Cliff, I REALLY hope you end up reading this...As it turns out, the OP (me) ended up deciding you are a horse's ass, so there was no half a victory. In fact, due to the widespread scare tactics and purposeful misinformation that is being put out there by people like yourself, I'm becoming more and more convinced that single pay is going to ultimately be the way to go...It won't happen overnight, and I'm hopeful that we will take the best there is out there from other countries and combine with the needs of all of us and come up with a uniquely American solution for this problem.

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    P.S. You mentioned that I had been "crushed" here, which just goes to show that you misread things...I put something up for discussion and it was discussed, civilly, and no one even called me an idiot...where do you get that I was crushed? I brought what I thought sounded like some legitimate arguments to the group and they discredited them...I thought it was a great example of smart people educating each other.

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    stillidealistic

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