FOR THE HEALTH OF IT

A patients view of the doctors, just before going into surgery.

Few topics or “matters” matter as much or generate as much discussion and political malfeasance as health care, and not really “care,” but coverage.  Coverage is where the “easy” money is.  “Coverage” is like a giant public works construction project: easy to skim from.  It’s virtually impossible to get any graft – or campaign contributions – from individual medical procedures, but insurance conglomerates and hospital corporations and the pharmaceutical industry are deep wells for craven politicians.  Consequently, those same politicians are willing to expose the federal budget and debt creation to the medical “field” to the benefit of all, and even of patients sometimes.

Money, money, money.  About one-sixth of the U. S. economy is tied to “health care,” but a much smaller fraction is tied to CARE, itself.  These are huge industries with gigantic advertising, promotion and bribery budgets.  The ever-pure United States calls those filthy bribes  campaign contributions… or, they might be “donations” to colleges and universities for research and production of new doctors who, coincidentally, will be fully committed to pharmaceuticals, chemotherapies, surgery and maintenance for life – or death.  It’s all expensive.

Cancer is one of the cash cows of medicine: the big shibboleth in human caring and willingness to help others.  People fear it, and rightly so.  Breast cancer is a powerful subset, and so is pediatric cancer.  We love kids and care about their health more than for any older group.  Kids are helpless and pathetic; humans feel these things and sacrifice to raise them from complete dependency, to minimal independence, to experimental independence, to sports and education and personality development and, one day, separation into adult-hood.  We hate any interruption to these things and sacrifice to facilitate the stages of normal childhood.  Cancer is a Hell of an interrupter and we want to pay to stop it.  And we do.

Billions of dollars have been raised by the American Cancer Society, for example, and they claim a 79% rate of actual cancer expenditures: mostly for research, but a large amount is for “soft” expenses that help those who are in treatment and their families, and other non-care, non-research uses.  A big pile goes to run the Society, of course.  To its credit, A.C.S. does a lot of good along the paths it sees fit, and it’s much more efficient than the federal government, a low bar.  Sadly, despite its widespread use of children to raise its millions (Relay for Life, anyone?), only a small percentage of ACS dollars are employed to solve pediatric cancers.

In one case Prudence knows well, a 6-year-old girl survived neuroblastoma after much chemo, operations, stem-cell harvests and replacements only to fight through it again 4 years later, with more of many of the same poisons that forced the cancer to retreat the first time.  Five years later, more chemotherapy to force a third retreat.  “A miracle,” her family declared.  3 years later osteosarcoma attacked her right tibia, part of which was removed with cadaver bone up to the knee.  More chemo – same crap as earlier times, same poison to push the cancer back.  College and Masters degrees completed, 6 years later the fifth attack and fifth battle with cancer, now in the thoracic cavity pressing on the lung.  The bone cancer was a not rare reaction to earlier treatments; the chest problem a recurrence of the bone cancer, by genus.  Same poisons prescribed and administered, except she was unable to tolerate any more of it.  Twenty years of treatment, constant news about this and that breakthrough therapy, DNA, customized immunology, yada, yada, yada… same attempts to kill the cancer a little faster than the patient.

When the young woman with the lengthy, miraculous, cancer survival history heard what kind of poisons they were planning to pump directly into her bloodstream, she naturally pointed out that it was the same crap she’d received the last time!  Was there nothing better?  Newer?  Apparently not.  Bring us your sick children and we will poison them for you in the hope that the cancer cells will die first and we can hold your child back from the brink of death.

Medical students arrive at medical school with science knowledge
–at least biology, maybe chemistry – ready to be taught some skills, mostly about using and understanding the data produced by wonderful diagnostic electronics, and about the latest in pharmacological weapons to counteract natural biological weaknesses, failures, breakdowns, related pains and mental/emotional discords and incongruities.  There is a lot to learn.  If surgery is the interest, there is a lot of practice.  Students develop likes and dislikes that lead them to one specialty or another, or, for many, general health and well-being such as “family” doctors ought to know.   Some of these general practitioners are really “internists” who understand “internal medicine” as distinct from “external medicine,” one supposes.

In any case, new doctors are taught according to fairly rigid protocols and traditions by people whose adherence to standards is well known… and respected.  Indeed, it is only by proving one’s own adherence to those standards that a doctor will be licensed or safe when sued.  “Recognized” standards, “current” protocols, “best” practices – those are the only defense a doctor has.  Where is the profit for leaving medical orthodoxy?

Does this mean that “doctors” or “big pharma” are blocking the introduction of miracle cures that an obscure researcher somewhere has developed because traditional medicine would not?  Well, “yes,” and “no.”  I think, or at least hope fervently, that the answer is “yes” although there is no intent to do so; and that the answer is “no” because there is no intent to do so.  But, the inhibition of new ideas is almost inevitable.  Thankfully it is not impossible and progress does get made, inventions are developed and made marketable – and trustworthy – and new drugs are eventually approved.  So, what’s the problem?

The problem is that the new drugs are rarely giant steps – sometimes they are, but not  often.  This is because most research is built on previous success and lines of inquiry and wide departure from the reservation is not very likely – it doesn’t get funded.  Pharmaceutical manufacturers are looking for sure things.  Often the greatest advances are side-effects of drugs, new and old, that coincidentally prove beneficial elsewhere.  More power to them.

Similar effects produce medical technology like, for popular example, knee replacements and hip replacements.  Now very reliable and long-lasting, such replacements are commonplace, almost to the exclusion of alternatives.  Could the damage and erosion of joints be prevented?  In most cases.  Are there nutritional preventions that are still regarded as anecdotes, not science?  Absolutely.  Do you suppose that part of every knee replacement is dedicated to learning how to prevent knee replacements?  Well, no.

Americans, and most residents of highly developed countries, eat themselves to death, drink and drug themselves to death, smoke themselves to death, fertilize and pesticide ourselves to death, and so on.  For all of our health clubs, gyms and YMCA’s, Americans tend, on average, to not take very good care of the bodies we are born with and, now that parts can be replaced by our remarkable “repair, replace and maintain” medicine, there seem to be fewer reasons to worry about the consequences of ice cream, sodas and cheese-burgers and lack of basic exercise regimens.  We are told 8 times every half-hour by our flat-screens that we need never suffer from aches, pains, discomforts, anxieties or depressions.  There are pills for each of these maladies.  In fact, there are separate analgesics for shoulder pains, neck pains, knee and foot pains, back pains, headaches, migraines and insufficient sleep.  People who have allowed apnea to intrude on their ability to sleep can get a C-Pap device to counteract it.  What’s to worry?

What do all of these OTC chemicals do to us?  Some of the long-term effects are known, not the least of which is liver damage, but it’s slow, virtually unnoticeable, until it isn’t – kind of like moderate smoking.

Sugar and alcohol also have cumulative effects, if not simple diabetes, then an acidification of body chemistry that weakens the immune response to invaders.  Too much gluten, perhaps?  The American diet is awash in wheat and wheat proteins, right down to canned tunafish (only one brand is clean).  Tunafish?  And lots of other products: vinegar, puddings, many candies, gravies, prepared foods of all kinds include wheat starch, “hydrolyzed vegetable protein” and on and on.  Many people know they are allergic to gluten, far more do not… know, that is.  Skin problems, digestive problems, immune problems and, of course, weight problems, stem in large part from too much wheat in our diets.  The body tends to become allergic in the presence of too much of the same thing – often the food you like the best, as well.  But, that’s no problem!  There are multiple crèmes and pills to fight off the effects of our odd diets, so many, in fact, that they must be profitable enough to purchase TV advertising nationwide.  Do you ever wonder if every prescription for these somewhat dangerous drugs includes a small amount of money to fund prevention of gluten intolerances?  Nahh.  Bread, cake, doughnuts, fried clams, stuffing, ice cream, mayonnaise, salad dressings, sub-rolls, pita, crackers and… and… whatever, are too tasty to forego and, besides, “they” have things for that.

When Dwight Eisenhower left the presidency he warned America about the encroaching power of the “military-industrial complex.”  Rightly so, although that sloppy circle of funding and influence has managed to keep the country fairly safe in an uncontrollable world.  One can almost hear the words of a true outsider warning us against the “medical-industrial complex,” although almost no one would listen.  On the edge of Boston and Brookline there is a street called Longwood Avenue where hospitals have grown into connected proximity.  It’s starting to look like Las Vegas.

The insertion of politics into health care really got moving with the “Great Society” in the mid 1960’s.  It hasn’t been all good despite the public intentions of the socialists who caused the Great Society to be codified.  Today federal funds feed into the insatiable maw of modern medicine, and to help it along, every Congress adds new mandates for care and coverage.  Combined with the primacy of welfare (federalized at the same time) the general interface with patients has trended to impersonal, if not de-personalized, care.  The vision for health care is still greater impersonality, robotics and, again, health orthodoxy that satisfies… umm, well, the federal government, and “averages.”

No one is going to stop the money.  If we have to borrow from our 5th descendent generation, by God, we’ll do it!  No one who needs a new hip, rich or poor, will be denied one!  What?  Do we want to have a society where there is one level of care for the wealthy and another for the poor?  With enough agitation and politics anything that needs a licensed medico to accomplish will be funded.  Trans-gender mutilations?  Where’s the checkbook?  Prudence would advise that there is not enough money, or desks for nameless bureaucrats to sit behind, to provide all the repairs and drugs that are known, to every person who thinks he or she needs them.  Maybe robots will provide more even-handed care and cost less than humans.  Not so far.

A Degree of Economics

Everything so new and fresh

Prudence has successfully resisted the temptation to counter the many ignorant statements uttered by the impressively ignorant Alexandria Ocasio-Cortez, of late an elected representative in the U. S. House of Representatives.  She has a college degree… in economics.

One recent evening she purported to explain – obviously only to those more ignorant than herself – what “capitalism” is.  In the process she confused it with “free-market economy,” and then jumped to explaining how one might have a “mixed” economy where the “state” doesn’t own the means of production but “workers’ cooperatives” do.  Neither the origins of the means of production that workers’ cooperatives will “own,” nor the means of managing their cooperative labor, were revealed during her explanation.

To the likes of Ms. Cortez the Marxist concept of capitalism is not a solution to the human condition, but the cause of suffering and injustice.  Unfortunately, modern capitalists are proving many of Marx’s theories.  Thanks to the vapid connivance of ostensibly democratically elected governments (crony-capitalism), international banks virtually direct public policy and national economic decision-making.  Most “workers” – wage-earners, are relatively comfortable and not about to revolt against anonymous masters, but not all.  The obscene concentrations of economic and productive power run the risk of collapsing the edifices of international capitalism.  There’s plenty for social justice warriors to despise.

On the other hand… socialism cannot destroy debt – only productive surplus does and can do that.  It is not possible, at least human nature will not allow, a financially complex society to grow without practical amounts of debt.  Not to be pejorative, “debt” is merely paying for a product or “good” over time.  No, that sounds too simple.  “Debt” is only true and practical when a financing agent has judged a borrower likely to pay back the loaned cash with interest, oftentimes with the financier holding a chattel interest in the good for which it has loaned the purchase price, because of two factors: 1) The financed “good,” or product or house or car or medical procedure has sufficient desirability, utility or comfort value for the borrower as to make its value or worth obvious (and its potential loss undesirable enough) and valued by the borrower; and 2) The borrower or beneficiary of the good’s utility or comfort is, by test of available income over time, able to make periodic payments on a timely, contracted (promised) basis.

In the ideal case, then, debt is simply a tool that is “rented,” as it were, the value of which is clear enough to cause timely, interest-bearing, repayment.  The manufacturer of the good (debt properly employed should always, as in every single time, be employed to facilitate the transfer of a “hard, or manufactured, good” and not a temporary expense) obtains immediate payment, enabling additional future manufacture, while the customer of the good obtains the use and facility of the good immediately upon need when it may be too costly to afford a single cash exchange for it.

Much is misunderstood about “productive surplus.”  It’s “margin,” which is to say, revenue that exceeds the cost of manufacture.  “Oh, well, that’s profit for a capitalist,” some will say, “and you shouldn’t “overcharge” poorer customers or else you should share it with your exploited workers.”  But margin isn’t simply “profit,” and the “exploited” workers are paid according to their productive capacity and value to the production of the goods the manufacturer makes and sells.  Margin provides “working capital;” what does it actually do?

Working capital means cash in the bank, and it serves to improve efficiency within the manufacturer’s operations by enabling investment in better manufacturing equipment, often by being committed to pay off equipment acquisition debt, which shifts that portion of margin to cost-of-goods but which can reduce the costs elsewhere with more productive equipment (which is also a good result for the people who make that new equipment).  Working capital enables the company to train its workers to higher skill levels and greater productivity, yielding higher pay.  It also enables the company to hire more employees as production increases and, let’s hope, quality and sales also increase.

Productive surplus destroys debt; it’s the only engine that can.  In the presence of productive surplus, debt is a useful and valuable tool for growth and for improving overall living standards.  But what happens to “profits?”

Profits belong to shareholders, who are, in fact, the owners of the company.  Socialists feel as though no one person or small group should “own” a means of production, but that it should automatically “belong to” or be controlled by, the workers, to whom all the profits should be distributed.  History, the bane of socialists’ existence, teaches that humans are good at some things, bad at others, and one of those “others” is collective decision-making or, the corollary, collective self-leadership, an oxymoron that socialists insist on believing in.  Let’s start at the beginning.

A person has an idea for a widget/product/thingy that other people will want to have because it makes, ummm… it makes baking cakes, breads and muffins easier and more efficient with fewer bad results.  The person has no factory but he (let’s say it’s a he) learned in trade school (paid for from taxes that derive from profits) how to work with metal as well as how to apply himself to a problem and how to concentrate and to research the things he doesn’t know.  First he figures that being able to have a baking oven that has even, steady heat would lead to uniformly baked goods, so he tries various kinds of pipes and shapes and pressures to provide even gas flames that won’t make hot spots within the oven.  Aha!  He gets it and finds a way to generate even heat, cobbles together a metal stove and burns his first cake to a crisp, as the whole oven became a hot-spot.  Hmmmnn.

Our inventor/entrepreneur realizes he must regulate the heat to achieve one temperature and hold it there within very narrow limits…   The process goes on for weeks and months, absorbing every spare hour and weekend until he has a metal box of a specific shape with special gas burners, elaborate temperature sensors and controls, insulation and directions for installation, use and cleaning.  But he has just the one.  If he sells it for more than it costs to make he’ll have a brief profit but it takes so long for him to make just one that he’ll go hungry before he can get the next pulse of “profits” from selling the second one, assuming that he quits his 9 to 5 job and works on the oven business full time.

He has some savings that he has been slowly accumulating to provide for his family if something happened to him, and he’s been careful to leave them intact.  His idea is good and he’s proven that it’s the best oven design potentially on the market.  How to get it there?  He needs capital, of which he has only a little.  He and his wife decide to take the risk, pledging their savings and their house(!) to secure a loan that will allow for several key things needed for producing 10 ovens per week, and selling them, at a margin that will allow for repaying the loan with interest (which employs people at the bank), insuring against the risks and liabilities manufacturers face, making payroll (and benefits!) for the 5 people they must hire to make and market the ovens (including payroll for himself, the owner/inventor, and to invest in an inventory of parts and gizmos needed to assemble ovens such that orders for ovens can be filled promptly.  And, oh, yes, they have to lease some suitable – or nearly suitable – space for manufacturing and testing, on which there is a large deposit.  Everything is at stake.

With much struggle and worried nights things get done.  The first 10 ovens are produced, tested and packaged for shipping.  The sales “department” of one former kitchenware sales rep, has secured an order for 4 of them, one of which is to a small mom-and-pop bakery not far away.  The owner/inventor goes to their small shop, attached to their house, to oversee installation by the plumber/gas-fitter, and personally teaches the operation to the new owners, who took a risk of buying an expensive new oven based on its description and manufacturer’s test results.  They agree to let the inventor/capitalist advertise their success with it – for a fee.  It performs as advertised and they start to do more business thanks to the creative new pastries their new oven bakes to perfection (damn those wood-fired stone ovens).

Well, the advertising kicks in and the sales department manages to sell the rest of the first ten and the next ten and things start humming at the “Great Perfection Oven Company.”  Soon, a major catalog sales company makes an offer to carry the oven at a discount to them which, if they can prepay for a certain number and sell at least 10 a month, the harried owner/inventor agrees to provide, even though he’ll make less margin per oven.  The advantage is that with that new revenue he can afford two more production employees and more leased space and increased advertising.  And on it goes…

Within a couple of years he and his wife celebrate the pay-off of the first loan that had put their house and savings at risk.  The business has grown to employ 40 employees and a large commercial bakery has approached them with a request for a production-size version of the “Perfection Oven” with its now-patented gas burners (patenting cost over $30,000) and the inventor/owner commences to design just such an oven which will require more manufacturing equipment and changes to one of their production lines… and so on.

Ms. Ocasio-Socialist, do you think he doesn’t “own” this business?  He and his wife are the only share-holders.  Do you know what else “margin” dollars must do?  They have to provide long-term benefits like pension contributions to trusted, valued employees: the ones who help the company succeed and be profitable.  They have to create a reserve fund in case other threats to the company materialize, cutting into profits, challenging its patents, creating knock-offs and look-alike ovens that sap Perfection Oven sales and margins, as well as changes in tax laws or state-mandated benefits, paid leave laws and new health-care coverages… not to mention changes in OSHA and EPA regulations that could hamper production or require costly new changes to production facilities, unionization, higher fuel costs for delivery of both raw materials and finished goods (ovens).  Lots of future risks that must be insured against, sometimes with simple cash reserves.  THEN there are profits.

Ms. Cortez, do you, with your costly economics degree, understand any of this?