CANADIAN POLITICS-ONTARIO:

STARVING HEALTHCARE-FEEDING CORPORATIONS:

The following opinion piece was written by the President of the Ontario Public Service Employees' Union and published in the online news journal Public Values. I reprint it here if only because there seems to be a need of periodic reminders of how good Canada (and the rest of the civilized world ) has it in terms of health care when compared to the USA. Through the thunder of their (often mindless ) debate down there on the proposals to reform their healthcare system one can discern the almost comical ignorance that many (most ?) Americans have about how their system compares unfavourably with almost all developed and even a few underdeveloped countries. They spend more money and get fewer results. Not the least reason for this inefficiency is that a good proportion of the funds available are skimmed off as profit by the insurance companies, amongst others. Whatever the inefficiencies of other systems at least other countries don't have to apportion money to this class of parasites.

Up here our health care system is under attack and underfunded. Governments, such as those of Ontario, as mentioned in the following article, would much rather spend the money on corporate handouts. Not that our system is perfect by any stretch of the imagination. Molly has expressed her own preferences here at this blog before ie a system of community clinics and mutual cooperative insurance. The beginnings of such a system could easily be initiated even under our present system, with the mutual insurance covering things not presently covered by medicare. The single payer system would have to be retained until such time as non-government methods of social insurance were more fully developed. That process would have to be gradual to avoid unnecessary suffering. In the process of such a "withering away of the state" the first thing to go would obviously be grants to the corporations. The last thing to remain would be corporate taxes and taxes on the wealthy.

Until this process begins, should it ever begin, it can easily be demonstrated that the Rube Goldberg American system is demonstrably inferior to not just that of Canada but also to that of most of the developed world.

Here's the article.

HCHCHCHCHCHCHC

Canada spends one-half per capita on health than US does, yet we are healthier:
Government pleads poverty, yet proceeding with tax cuts to Ontario corporations.
by Warren (Smokey) Thomas
How sustainable is health care? Opponents of Medicare regularly question the public sector's ability to pay the bills as health care creeps up as a share of provincial budgets. New data from the Canadian Institute for Health Information (CIHI) suggests health care costs may be more sustainable than we think.

Affordability is best determined by looking at health costs as a percentage of our overall economy, not by the size of government. The CIHI data suggests that health care costs have escalated roughly in step with the economy, whereas the size of government has been getting dramatically smaller.

Health care accounted for 10 per cent of our economy in 1992 – the last period of recession. In 2009, health care is expected to be 11.9 per cent largely due to a shrinking gross domestic product (GDP), not rising costs. In 2008 it was 10.8 per cent, less than a percentage point above the 1992 levels. This hardly indicates a lack of sustainability.

"As a share of the overall health pie, hospitals have been shrinking. In 1975 hospitals accounted for 44.7 per cent of health expenditures. Today it’s 27.8 per cent."

There is no question we are living longer and better as a result of the investments we have made. From 1996 to 2006 our average life expectancy was extended by three years – the biggest leap in mortality rates since they have been kept.

Federal funding to reduce wait times is having a positive impact, particularly for hip and knee replacements as well as cataracts. This is something Canadians all said we wanted and were willing to pay for.

According to CIHI, money has also been invested in tailored drug therapies, diagnostic technology, training health care professionals and to increase class size in medical and nursing schools. These last investments are necessary if we hope to replace the soon to retire legion of baby boomers serving as professionals within our health system.

While spending as a percentage of our economy has nudged forward over 20 years, it has not been entirely in lock step. In the 1990s governments dramatically slashed funding to health care, leaving present governments with a major infrastructure deficit. It is far more costly to play catch-up than it is to keep the system on an even keel. Finance Minister Dwight Duncan admitted this when speaking to the Ontario Hospital Association Conference last fall.

Hospitals always appear the target of restraint, but are hardly to blame for rising health costs. As a share of the overall health pie, hospitals have been shrinking. In 1975 hospitals accounted for 44.7 per cent of health expenditures. Today it’s 27.8 per cent.

"Total public sector spending used to account for about half the economy. Today it is closer to one third."

In 2009 Canadians are expected to spend $5,452 per capita on health care – both public and private. That’s slightly less than France, Germany, Switzerland and Belgium. It's much less than the United States, which spends almost double per capita and yet leaves 45 million Americans uninsured and many more underinsured. On almost every objective measure, Canadians do better with their health than Americans, from infant mortality to our overall longevity.

In the past year there has been an attempt to divide the progressive community by portraying health care as an insatiable monster crowding out education, housing, transportation and even poverty reduction.

The McGuinty government continues to shrink the pie and is happy to see us all fighting over the scraps. Total public sector spending used to account for about half the economy. Today it is closer to one third.

While the government cries poor, it is stampeding ahead with a series of tax cuts, including a $5 billion reduction to Ontario corporations.

We need to defend all our social services, including health care. When we start pitting our sectors against each other, we all lose.
In solidarity,


Warren (Smokey) Thomas,

President
Links and sources Ontario Public Service Employees Union (OPSEU) site

INTERNATIONAL POLITICS:

MUTUALIZE THE BANKS ?-YES!:

A tip of the Molly hat to Larry Gambone of the Porkupine Blog for bring this to my attention. It seems that in Britain there is a move afoot to "remutualize" at least two of the failed banks. To say the least this is a positive development. Mutuals, known in this country as credit unions, are naturally more cautious than the free wheeling banks that led the world into the present economic crisis. They provide a natural barrier against the sort of speculation whose results we are seeing today. In addition, and perhaps most importantly, they provide a non-governmental source of credit that would be available to the many (and probably many more in the future) enterprises that are presently in dispute, often with workers' occupations of the facilities. Mutuals/credit unions could be a source of credit for such enterprises if their workers wish to turn them into producers' cooperatives. They would provide a third alternative different from either waiting for a private "white knight" or calling for nationalization of the workplace in question. The agreements taken up with such mutuals leave the actual workplace free to develop true workers' self-management, something that neither private buyouts nor nationalization does.

Yes, the British initiative is small, but I hope it comes about and that it is imitated on a larger scale worldwide. Here's the news from the pages of the British newspaper The Guardian.

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Turn failed banks back into mutuals, Labour told:
Rock and B&B should be restored to savers
Pressure is mounting for the government to explore ways to remutualise Northern Rock and Bradford & Bingley, nationalised after the shares crashed amid fears that they could collapse amid the world financial crisis. Both companies were mutuals before becoming stockmarket-listed banks in the 1990s.

Labour MPs are pushing for the government to expand the role of mutuals, which are owned by depositors and borrowers. They do not have shareholders who may be more interested in diverting profit to bolster dividends than getting customers a better deal.

Mutually owned building societies are widely viewed as more cautious than banks, which have been accused of irresponsible lending during the boom. Societies are barred from funding more than half their mortgages from the wholesale money markets, which have frozen up in the wake of the credit crunch.

One option would be to remutualise Northern Rock and B&B, both of which have been rescued by the taxpayer at a huge cost, although part of B&B was acquired by Spanish bank Santander. The principle of remutualisation is supported by the Co-operative party which sponsors 29 Labour MPs, including schools secretary Ed Balls.

The Co-op's general secretary Michael Stephenson said: "The government could consolidate Northern Rock and its holding into one institution; when all debts are paid back, the institution could be converted into a building society. Alternatively, government could give existing financial mutuals (such as Nationwide) the right of first refusal when it decides to put the institutions it nationalised up for sale."

John McFall, Labour chairman of the Treasury select committee and a Co-op sponsored MP, says: "If ever there was a time for an expanded mutual sector, it's now. We desperately need to restore faith in financial services in this country." Although he stopped short of calling for a firm commitment to remutualise the Rock and B&B, he told the Observer that the idea was "a fertile area for debate".

He was backed by Mark Lazarowicz, Labour MP for Edinburgh North and Leith, who says: "This is an issue that is worth airing at a time when confidence in the banks is at an all-time low."
Martin Weale, director of the National Institute of Social and Economic Research, said remutualising Northern Rock and B&B could be a relatively simple, albeit lengthy, process with money owed to the taxpayer repaid by borrowers who redeem their debts over time. New "membership" shares could be issued to depositor/members, he said.

It emerged this weekend that the Building Societies Association is to commission academic research into how the mutual sector could be expanded in Britain, after banks that ditched mutuality in favour of plc status have either been nationalised or taken over in "mercy killings" by rival institutions. They include HBOS, which has been merged with Lloyds TSB, and Alliance & Leicester, which was bought by Santander.

Stephenson said: "When the last Conservative government encouraged building societies to demutualise, it plundered generations of assets from mutual societies, replacing prudent mortgage providers with some of the worst culprits of casino capitalism."