Comments by "whyamimrpink78" (@whyamimrpink78) on "Bernie Perfectly Explains Our Broken u0026 Corrupt System Even In 1991!" video.
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Dj Luminol , a study out or Oregon showed that even when you give poor people healthcare they still had problems. The reason why is because bad health is mostly associated with poor lifestyle choices, such as diet.
https://www.nejm.org/doi/full/10.1056/NEJMsa1212321
So one can argue that those variables won't be handled. Also, I encourage you to read the book "Being Mortal". If someone has an illness that is considered curable but still dies from it, chances are they had many issues as well.
On my question I will give you my opinions
1. The payroll tax led to employers paying with healthcare insurance. It became a tax free way to pay employees. Just like other benefits. Employers would rather pay with a higher wage as it is easier, but the payroll tax prevents that.
2. Since healthcare insurance has become a form of payment it has become healthcare. What I mean is that healthcare insurance essentially covers everything. There is a desire to have insurance as sometimes demand is inelastic. A case like an emergency is such that. But why should insurance pay for things you can shop around for? Such as an Xray, an MRI, routine check ups, prescription drugs, etc. Same as with car insurance. Car insurance covers an accident when you don't have time to shop around. It won't for new tires even though tires are necessary for a safe car. I have a prescription I take. Why do I need to see if insurance covers it? Why can't I just pay for it out of pocket and shop around?
That, to me, is a major starting point in why healthcare is so expensive.
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Ghost Yuki , when you say inflation you have to consider a couple of things. One, there is more than one way to measure inflation and they produce different results. And two, there are flaws in inflation measurements.
This is going to be long but informative. On the first part there are many ways to measure inflation. Most use the CPI, and I will tell you why here in a second. But you also have PCE, GDP deflator, Boskin Commission CPI and so on. They produce different levels of inflation. If you use Boskin Commission CPI or PCE wages have out paced inflation by those measures. And it isn't that those methods are not reliable, they are. The Fed uses PCE all the time. It is that CPI gives the highest inflation rate so politicians and the media use it the most to overstate inflation. Politicians use it because many government jobs wages/salaries are tied to inflation. In the late 80s early 90s the Boskin Commission was developed to find the actual inflation rate for CPI and they found that CPI was overstating inflation by 2 to 3 percent. Government officials ignored it because they know they would not win elections by telling government workers their wages were going to be cut. Imagine you are an elected official and you say to the public that you are going to cut raises to government workers because inflation is not as high as it is listed? While that person may be correct, imagine how the media will portray it? They will use it to smear that politician to where they will lose the election.
Positions that are not elected in government are that way because they have to make the correct decision no matter how unpopular it is early on if it is best in the long term. For example, SC justices are in that position. The Federal Reserve Governors are another. They use both PCE and CPI inflation to set interest rates. The Minneapolis Fed argued that PCE is better
https://www.minneapolisfed.org/publications/the-region/i-say-cpi-you-say-pce
On the second part there are shortcomings in inflation measurements. For example, inflation methods have a difficult time factoring in improvements in technology. A car today may be more expensive in pure sticker price compared to the 70s. But cars today last longer, are safer, get better gas mileage, are easier to drive, etc. All which saves money. Same in that people have smart phones where in the 70s no one has them. You can make informed decisions like that. Or through the internet. You can read reviews of a product before buying. That forces companies to produce better products that will last longer which saves money. Or how you can buy something online which saves money as you don't have to drive around.
Another issue is that CPI inflation has a tendency to lump things together. For example, they will lump all meat together. So if the price of fish goes up 100% due to some issues in the fishing industry, CPI will say the price of meat went up even if all other meat prices stay the same or drop. If fish prices go up than people will buy other kinds of meat. Another issue is what is called "new product bias". When a new product hits the market the price is jacked up as people really want it. Take flat screen TVs for example. When they hit the market they were really expensive. But shortly after the price dropped. That jacked up price overstates inflation.
And with wage stagnation, many people don't include benefits to it. Here are some sources to look into
https://www.nber.org/feldstein/WAGESandPRODUCTIVITY.meetings2008.pdf
https://www.dartmouth.edu/~bsacerdo/Sacerdote%2050%20Years%20of%20Growth%20in%20American%20Wages%20Income%20and%20Consumption%20May%202017.pdf
https://www.youtube.com/watch?v=s6FmhXQ32Wo&t=160s
As a whole, there is data to suggest that wages have been stagnated. But there is also a lot of data and variables that exists that one can use to argue that wages have not been stagnated as well. Someone who just points to CPI inflation to make a strong argument, in my opinion, is pulling wool over your eyes.
If you want more details than just ask. But that is why I say that wage stagnation is arguably a myth.
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