Years ago I worked with a guy in Argentina who when ever I made a statement came back to me with, "compared to what?" His attitude really got on my nerves. It seemed like every time I said anything he would come back with his, "compared to what?". As time went by over these many years later, I have grown to appreciate his comment that I thought was rude at the time. I have adopted what must have been his thinking even if I don't actually blurt out, "compared to what?" every time I hear some kind of not too well thought our remark from someone. When you start to analyse some of the things that we say, they seem to stand alone as "right" or "wrong", but without any real basis for these positions. Let's see, if I said that a Mercedes is expensive and let the statement stand on it own, what would be the true meaning? You would have to accept or reject may statement that a Mercedes was expensive. Now we know that expensive is not a finite item, value or point on some scale. At best, it is a ratio of at least two variables and then it does not totally define expensive. Now the ratio, on the top could be the price in dollars and on the bottom how much money you have to spend on a car. If the ratio is greater that, say 1, then we could assume the Mercedes to be expensive. If, on the other hand, the ratio were less than 1, we could assume that the Mercedes was inexpensive. Does that make any logic with you? You could come up with all kinds of examples and ratios to test various ideas about exactly what expensive means. It seems that we never look at things very logically, but if we use the expression, "compared to what?" more often, maybe we would start to understand things of value better and thus make better decisions. Where is all this going? I am not sure, but you know that I have been Blogging about current politics related to health care, so you have a hint.
We keep hearing every day from both left and right that our health care is too expensive and getting more so. To understand this whole think, we at least have to agree on the definition of exactly what "expensive" means, or "compared to what?" See, I had a plan. In a prior Blog, I pointed out that Sweden had a "better" ratio of per capita GDP as a function of doctor compensation than the USA. Switzerland also has a better ratio than us. Does this mean that medical costs in Sweden and Switzerland are less than here? Not necessarily. Remember that we have defined expensive as a ratio and cost is "not" a ratio. We have to consider per capita GDP. In both Sweden and Switzerland, they have a higher per capita income than the USA. That means even if their doctors get paid more than ours, they could still have a lower ratio and thus less expensive medical service. Notice how I did not use the word "cost". As you can now see, using "cost" as the basis of comparison, we totally miss the whole concept of what is "expensive" and what is not. See what a great tool, "compared to what?" is?
If you check the figures out, you will find that not only does the USA have the most "expensive" medical service, but the highest cost. See, I said it. This is just a little side point, but I think you will follow it. What do you think will be the impact on the "expensivness" of medical care in the USA if we allow more immigrants from Mexico and Latin America to come in? Have you thought about it? Well, let's go back to the ratio of cost over per capita GDP. The addition of low productivity immigrants to our economy will drive down the per capita GDP. Do you agree with that? It is just one of the reason that Switzerland and Sweden have higher per capita GDP's than the USA they keep these types of people out. If we drive down the per capita GDP here while the cost of doctors stays the same, the ratio will go up! Right! If the ratio goes up then medical care in the USA also goes up resulting in medical care being more "expensive". Are you starting to get a better handle on the problem? Hey, if all of us were able to pay our own medical bills, our medical care would not be "expensive". Starting to see the problem? We don't earn enough to deserve the medial system that we have created here. Have you actually heard any thing out of Obama's frequently open mouth that addresses anything about how we become more productive and thus earn more in the world? I haven't. Is it that he is stupid or is he speaking to a bunch of stupid people? I think you might need a little joke here to understand my point. When I was a kid, my grandfather told me a story that I still remember. "If you are walking along and come upon a person talking to his mule, it is almost impossible to tell which one is the mule." Do you think we are to that point regarding Obama and health care?
Next time you hear what you think is BS or a person speaking before their brain is engaged blurt out, "compared to what?" and see what happens. I think you will be surprised.
