Intermediate Micro economics. In absence of govt. intervention, market Essay

Intermediate Micro economics. In absence of govt. intervention, market resources allocated to health tend to be below the social - Essay Example However, this is only the case when a government is in question. There are several debates regarding the issue of giving healthcare in the hands of private sectors, but there is a speculation regarding the treatment of healthcare as that of a business with a sole purpose of achieving profits. On the other hand it is also said that in order to maintain a market share in healthcare, the private sector players will strive to provide the best type of technology, which would be more convenient and advanced, and heavy on the people’s pockets. A study of the importance of the role that a government intervention plays in the healthcare also brings to light the adverse effects of its absence. The concept of a socialist system of government believes that it is the government’s job to provide all basic facilities to the people in general with no disparities between income classes and backgrounds as long as they are all citizens of the same society. Basic necessities like education and healthcare should be provided to all, unlike the competitive markets for other consumer commodities. Multi-tier system offers different levels of quality but a single tier system is the true essence of a democratic socialist system where all people are equal when it comes to basic rights. The government provide healthcare through subsidies that are derived from the pool of general taxation. Where socialism is flexible in terms of existence of private entities too, it is often mistaken for a democratic system. The Healthcare system in the US has been center of much controversy for the past few years. This is because of the high costs of healthcare as a result of the influx of an array of private medical institutions and lack of government regulations to hamper their excessive profiteering. This has resulted in the emergence of insurance based healthcare, usually backed by employers as it is not affordable by the general public (Cfeps.org, 2013). The current government has offere d incentives for a better system in place with maximum government intervention to ensure that the masses are provided with adequate healthcare reasonably. Healthcare is a major concern for the people all over and history proves that it is imperative for the government to have a regulatory body in place to ensure people’s satisfaction over this dire need of theirs. Private and publicly funded healthcare systems running in some countries in the world have been a point of controversy. This is because one side holds the notion that provision of healthcare should be government funded and be provided as a free service to the people from the government revenues. Whereas, public funded healthcare which is provided free, drawing from the pool of health tax imposed on the general public, has been seen as an effective system as well (Saltman & Busse et al., 2004). This is where the economic externalities come into play as well since not all the people are availing expensive healthcare f acilities, and some of them who are, are those who have not paid fully for it, resulting in the negative externality for the former and a positive one for the latter. Government intervention in the private markets in the form of imposing regulations and restrictions have been viewed as a hindrance because this tends to de-incentivize the induction of new and more technologically advanced health based companies in the system (Lewis, 2000).