Just as the laws of physics make apples fall to the ground, there are rules that govern how money works, and health care money is no exception. Failure to understand these rules will limit our understanding of the nature and reality of monetary transactions, social interactions, and economic activities. This will compromise decision-making, human capital accumulation, lifelong productivity, and ultimately health and quality of life. Over the next few months, I will be using this site to explain these rules that I believe can empower people, especially those new to the world of money.
Rule I: We all love money
It is part of human nature for all of us to own money and/or control its use. Money, with its universal trust and universal exchangeability, opens up opportunities and confers power and independence. We use money to "buy" what we want, not to "beg" others for charity. Money allows us, as free and decent people, to make decisions and achieve our goals.
Our desire for money also motivates us to learn, work and develop, contribute to society, drive economic growth and create wealth to finance health care and other purposes. Even people who live to fulfill intrinsic motives, rather than monetary incentives, will not refuse donations to promote their causes in good faith. No business can succeed without financial support.
II. Spending money helps others
Money (after taxes) can legally go into the following areas: consumption, savings/borrowing, investment and donations. All of this strengthens the economy, making health care and other services and products more affordable.
Consumption pumps money directly into the economy, supporting businesses and creating jobs. Savings allow banks to lend money to businesses, governments, other organizations and individuals who need money so that it can be used for productive purposes and expand our economy (buying bonds and direct loans is the same thing). Investment directs money to promising companies and assets, a process that allocates capital efficiently, promotes competition, and promotes economic growth. Gifts help recipient organizations achieve a variety of goals. Therefore, by spending money, we somehow help others.
III. Rule: Greater wealth leads to greater willingness to invest in health
Time is the currency we are given, necessary to buy everything of value, many of which cannot be bought with any amount of money. The balance and quality of the time we have is ruthlessly determined by our health.
As we accumulate more wealth, we are willing to spend money in exchange for time, such as buying time-saving services and investing in things that improve our health. Clearly, investments in the social determinants of health (eg, better nutrition, housing, and education) and health care are transactions in which people use money to buy time. It is therefore not surprising that rich countries spend much more per capita on healthcare than other countries.
Greater wealth leads to greater willingness to invest in health. This standard creates exciting opportunities for scientific discovery and technological advancement in healthcare. However, it also carries the risk of bad decisions, fiscal discord, and public policy failures with significant opportunity costs to Americans; Maybe we can be healthier with the money we spend on healthcare.
Understanding money will give us a sword to cut through the smoke, a tool to get to the bottom of the rabbit hole, a lens to evaluate the economic reality of transactions, and a compass to guide decision-making and health decisions. and in general . . Get rich, stay healthy! Continue until next time.