Michigan’s governor, appearing on Fox News Sunday (10/11), said that we need the public sector to pick up more of the health care bill so that the private sector can be more competitive.
It is this kind of flawed economic thinking that gets us into so much trouble.
Does the governor think that the public sector gets its funding from thin air, or that doctors work for nothing? Doesn’t she get it?
The private sector pays for the entire health care bill in every country under every scheme. The government does not produce stuff - the private sector does, and earns the income that pays for everything the government promises. I can pay for my health care directly, or I can pay taxes to support Medicare which pays for health care with a lot of administrative costs.
Firms don't have to provide insurance and don't have to keep up with rising costs. It's not law (yet). It is part of total compensation which includes cash, taxes and benefits. In most of the economy, this "pay package" is negotiable. Not so with union contracts however.