Opinion

Edward Hadas

A holistic economics of healthcare

Edward Hadas
Sep 10, 2014 15:18 UTC

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Every country in the world seems to have a healthcare crisis. The problems are particularly severe in rich and ageing countries, including the United States and the United Kingdom, where expectations are especially high and the systems were designed for a different reality. A new report from The King’s Fund, a British charity, suggests a better approach.

The policies proposed by the independent Commission on the Future of Health and Social Care in England, chaired by economist Kate Barker, are designed for the UK. However, the basic idea is universal. Barker says that the two largely separate arms of the welfare state – healthcare provision and direct financial support for individuals in need – should be merged.

The two used to be quite distinct. Healthcare dealt with illnesses and the largely short-term treatments provided required doctors, nurses and, more rarely, hospitals. Welfare programmes assisted the ill, but their chief objective was to counter economic and social problems such as unemployment or dysfunctional families.

Now, as the Barker Commission points out, a fairly high proportion of the population is in need of constant attention that is simultaneously social, economic and medical. Older people, say, with serious handicaps such as dementia need help. But not just medical help. An increasing number of younger people have complex conditions, such as those associated with drug addiction, in which the physical problems both cause and are amplified by social difficulties.

Shhh – don’t talk about higher taxes

Edward Hadas
May 7, 2014 14:53 UTC

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Many people assume that tax increases are the only realistic response to excessive income inequality. They are wrong. There is a better way.

The International Monetary Fund first came out in favour of greater “redistribution,” a code word for higher taxes, in February. It joins the Organisation for Economic Co-operation and Development, which issued a big document decrying the privileged position of the richest residents of rich countries in 2011. The OECD has just called for “policies to restore equal opportunities,” another code for higher taxes.

Wealth buys less lifestyle, more power

Edward Hadas
Apr 2, 2014 14:39 UTC

Many serious people think economic inequality in the United States and other developed economies should be a hot political topic. But the general public hardly cares. There is a bad reason behind lack of public interest.

President Barack Obama said last December that a “dangerous and growing inequality” is “the defining issue of our time,” but the most recent Gallup poll suggests that view is not widely shared. Only 3 percent of Americans chose the “gap between rich and poor” as the country’s “most important problem” and 4 percent went for poverty. Unemployment scored 19 percent.

The American indifference is surprising because the measured increase in inequality there has been relatively large by international standards, to judge from the recent Chartbook of Economic Inequality from the Institute for New Economic Thinking at the Oxford Martin School. But the lack of concern is widespread. Neither help-the-poor nor soak-the-rich politicians have gained much traction in any rich country.

The social market economy

Edward Hadas
Jan 25, 2012 15:14 UTC

Capitalism is the name people give to the way the modern economy is arranged. Now that Communism has been discredited as an economic system, there seems to be no real alternative. But the word is misleading.

A capitalist analysis of any economic issue starts with capital, both physical capital – factories and land – and financial – shares and bonds. It is associated with free and competitive markets for goods and labour.  And capitalism has come to designate a system where private property is the norm, with any exception needing some sort of justification. Capitalist analysis usually treats governments and unions as economic interlopers, and ignores the broader society.

That perspective is too narrow. Capital and markets are only two parts of the complex modern economic system. People don’t only matter because they bring their labour to the owners of capital – as in the original, 19th century definition of capitalism. And governments over the years have become regulators and keepers of the monetary order. Moreover, the economy is so closely integrated with modern society that no clear border separates the two. Social forces – such as the thirst for technological innovation, the work ethic and other moral values – play a fundamental part and influence the workings of the purely “capitalist” system.

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