November 7, 2009
The Price of the Public Option
For decades now, prices in the health care industry have outpaced the overall inflation rate. Health care takes up a larger and larger portion of the economy. While health care's share of GDP has very recently been a 7th, it now makes up a 6th (and is soon to be a 5th), and there's no end in sight. So is there anything the health care industry could learn from enterprises that have stable prices?One industry that regularly sees dizzying downdrafts in prices yet manages to survive in business and innovate is consumer electronics.The price of Blu-ray players (for hi-def DVDs) has rapidly come down by more than 75 percent to well under $200. When the first plasma HDTV came out, it cost more than an automobile. Pioneer priced its first 50" plasma at $25,000. Now you can find a fabulous HDTV for less than 5 percent of that. And the latest thing, the gorgeous LED, is well under 15 percent of it. So average Joes can have theatre-quality cinema in their home for a song. And we're all...(Read Full Article)




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