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October 5, 2009
The Positives (and Normatives) of the Healthcare Debate
By Cindy Ivanac-Lillig
There is always that lesson early on in a Principles of Economics textbook about the difference between positive and normative economics. Most of the time, it seems to confuse students and I have often thought about skimming over it as I don't want students to think that the class is going to be that mind numbing for the next 12 weeks. However, it is an important lesson and I usually ask students to find an editorial and identify arguments that are made on both positive and normative terms. I am not teaching this quarter but the healthcare debate may be the perfect case study for this exercise.
There are a lot of voices shouting we should do X and should not do X, but it may be good to look at some actual data. I am not suggesting that getting to the right healthcare reform is simply about correctly analyzing data, but it is a good starting point from which to discuss the potential implications of doing something versus not doing something. There is a good article in the Dismal Scientist from last Wednesday detailing the numbers behind America's uninsured. The current situation is a bit startling, but the trends may be more so. Check it out here. And check out another good entry by Mark Zandi on the numbers behind the cost control proposals. His statistic on the how the total mortgage interest deduction actually costs the government less than the total employer-based healthcare cost deduction is also quite startling. Check it out here.
The healthcare debate is a great vehicle for this lesson as there are many examples of normative and positive theories out there. This debate may provide students with a unique example of a situation in which the dividing line is a bit unclear. The value of good health and good healthcare is difficult to calculate. Dare I say -- there could even be some room for normative arguments amongst economists in this debate!
Good luck everyone. Check out a blog entry from a few weeks back, How much is health insurance worth?, in case you are interested in some more on this topic.
Looking forward to hearing your thoughts….
Posted by Cindy at October 5, 2009 10:02 PM
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Hi,
thanks for the great quality of your blog,
Posted by: black hattitude at October 30, 2009 5:15 AM
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