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Sunday, July 4, 2010

Wouldn't it be great if I could have free healthcare? Wouldn't I love to go see my doctor, get that x-ray and visit the ER when necessary and not have to worry how much my poor health or unexpected accident is going to affect my family's bank account?

I don't think people who want universal healthcare are bad people. I think they believe that they are working toward a noble and generous cause. The idea that I would never have to worry about the cost of health care is of course appealing - who doesn't want to reduce one of life's stresses? - but this beautiful idea is predicated on false economic principles that will lead to my society's financial (and thus my own) destruction. Socialized medicine is government control of the medical field (doctors, nurses, hospitals, etc) and although Obamacare is just a tiny fragment of this - government collects the money, but doesn't yet control the field - it is also just a stepping stone on our path. Originally, when Canada changed from a private to public system, Canadians were still required to pay into the system. Eventually that changed and payment was no longer directly required because taxes were substituted. Now decades later, more and more medical coverage is not being covered or is only covered at an additional cost - yet Canadians (often paying 50% or more in taxes each year) often balk at our extremely high cost of medical care.

This modern-day Siren of "free" healthcare is based on the idea that I will get the benefits that someone else will pay for. None of the socialized countries people point at actually have "free" healthcare; their healthcare costs are hidden in Value Added Taxes (VAT) and other general contribution funds that they have no say or control over since they've handed the responsibility of determining their health to their governments. This goes hand-in-hand with the rising tide of government regulations on sodas, fast food restaurants and drive-thrus.

I remember enduring a required economics class in high school, taught by an unqualified teacher (these were my thoughts at the time - remember I was maybe 17) who once tried to prove the idea that there is "no such thing as a free lunch". The entire lesson was taken over by the class clown arguing the idea that there is such a thing if someone else pays for your lunch. In his view this is the definition "free".

It seems that many people don't care WHO pays as long as it is SOMEONE ELSE. Unfortunately, I've seen this in some of the many bankruptcy cases where a family can't afford their lifestyle, but rather than scale back, sell their boat/ATV/Mercedes, stop getting their Lipo/nails/hair done every six weeks they'd rather max out their credit cards, hide their toys and stop their mortgage payments in an effort to take as much as they can, while they can. On an individual level I believe this amounts to theft. On a national level this sort of immoral short-sightedness is going to lead to financial downfall for our country, our states and our communities if followed as political policy.

Let me give you an example. The state of New Jersey has been following closely on California's heels in terms of raising taxes in order to make up for spending shortages. It's reached such a peak that this otherwise liberal state elected a Republican governor named Chris Christy based on his promise to slash the state budget and not raise taxes on their already overburdened population. And wonder of wonder he's actually making his political campaign promises a reality. When does that ever happen?

One of the first things he's attacking is the state's educational union where the teachers do actually get "the class clown's" version of a free lunch - in the form of free health care. Teachers don't contribute anything towards their own excellent healthcare and they've been getting steady wage increases each year. Meanwhile those in the private sector are leaving the state or working at steadily reduced wages. Christy's reform would require New Jersey's teachers to contribute 1.5% towards their own healthcare and accept a wage freeze for one year. The union continues to refuse these terms, preferring their teachers to be out of work then contribute to the system that sustains them.

There are no easy choices at this point. Not for the state of New Jersey and not for California. We have dug ourselves a hole and will have to make hard choices to get ourselves out of it. Unfortunately, no one in California seems quite ready to step up to the plate. Let's just hope that as our education, health care, crime and welfare problems continue to get worse that Californians will be able to recognize that there is no one left to give them a "free lunch" and eventually find a candidate that will represent limited government and maximum freedom for all. The only true freedom for all of us resides in fiscal responsibility. Fiscal responsibility requires not only personal sacrifice (which our governmental representatives are always happy for us to make), but also governmental policies of sacrifice to reduce state spending, reduce tax burdens and stick with sound economic principles that will benefit us all more than the Siren-call of giant governmental oversight fixing any of our problems.