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May 21, 2004
Health Care Costs Still a Concern
While it is rarely in the headlines today, health care costs are still a major concern. And if inflation heats up, hold on to your hats, as health care costs may really explode. The republicans seem to offer a fairly reasoned approach to deal with this issue. A democratic proposal would use tax policy to encourage small businesses to insure their workers. Presidents Ford and Carter are part of an effort to rally the uninsured to raise the issue without offering any specific solutions (read between the lines--then it must be our government's responsibility).
However, even the best of these proposals are still just incremental, short-term fixes. More fundamental change will be required sometime in the not so distant future. I fear that our drift toward more government involvement in every aspect of our lives will lead to a "governmental solution" to the storm brewing on our horizon that is unbridled health care costs.
Much of the problem as it exists has its roots in well-intentioned government policy, such as the deductibility of employee health insurance costs. When government gets involved, markets lose their power. Most of these policies have resulted in a reduction in competition and more regulation. What is most worrisome is the recent experience with education reform. Even the Republicans chose the path of more federal government involvement and regulation with the education crisis. I fear the same future faces us with health care. As one commentator recently put it, the Democrats want to sprint to socialism, while the Republicans are taking us there on a more leisurely stroll.
Posted May 21, 2004 01:11 PM
at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
