A new op-ed in the NYT asks an interesting question; must capitalists be opposed to social programs, or can they work together for mutual economic benefit?
I think the article is behind a pay wall so I will provide a few snippets here.
Quoting from the article,
There’s a big lesson here: When capitalists perceive government as a logistical ally rather than an ideological foe and when all citizens have a stake in high-quality public institutions, it’s amazing how well government can get things done.
I recall, some years ago, coming across a statistic that showed GM spending more money on healthcare benefits for employees than on steel for each vehicle they manufactured. GM exists to manufacture and sell vehicles, not provide healthcare. Wouldn’t it be better for everyone if GM could focus their efforts on their core competency?
Again, from the article,
Paying taxes is a convenient way for capitalists to outsource to the government the work of keeping workers healthy and educated.
Of course, a national healthcare system would cost money. Taxes on businesses and individuals would need to be increased. But there would also cost reductions that could offset most, if not all, of the tax increases.
Businesses would not need to directly administer these benefits and individuals would not need to pay for the health insurance premiums (at least to the level they do now). In addition to freeing businesses from being healthcare providers a national healthcare system would offer individuals with portable coverage, allowing them to move more freely from one job to another.
As for the potential negative impact on the economy as a whole, the article offers the following interesting statistic,
Here’s the funny thing, though: Over the past 50 years, if you had invested in a basket of Nordic equities, you would have earned a higher annual real return than the American stock market during the same half-century, according to global equities data published by Credit Suisse.
Why then are we where we are? Why are so many Americans fearful of a national healthcare system? In part, it’s clear they have been led to believe that social programs are the enemy of capitalism and will hurt them economically.
And finally, from the article,
If these moves by Finnish capitalists sound hard to imagine, it’s because people in the United States have been peddled a myth that universal government programs like these can’t coexist with profitable private-sector businesses and robust economic growth.
