Ross Douthat predicted that we are in for a never-ending health care crisis. He’s right, partly because health care is paid for by health insurance, which means spending other people’s money, as I said in Part 1.
But another factor drives the endless health care cost crisis even more: ever new and better medical technology—and the ever-increasing amounts we must find to pay for it. Those who follow health care policy (like Douthat) understand this. But to help inoculate the public against health care policy snake oil salesmen, everyone needs to understand it. To make things more complicated, but possibly a bit better, the US might, just might, get reprieve from the endless cost-growth.
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During the closing credits of Robert Reich’s documentary, Inequality for All, some of those profiled describe how, now inspired, they plan to take action against inequality. Erika Vaclav—Costco worker, mother, former owner of a foreclosed Condo and wife of laid-off Circuit City manager—plans to follow her husband into higher education. With the song 9-to-5 playing in the background, she says proudly, “I want to become a lawyer.”
My heart sinks. Erika doesn’t know that law school graduates now struggle to get jobs or that lawyers’ earnings and job security have plummeted. Erika envisions a law degree taking her permanently into the middle class. I envision it leaving her with much debt and few job prospects.
The jobs of the highly educated are not immune to the information revolution or globalization. Lawyers are hurting in part because software can do discovery (searching documents for relevant information) more cheaply than live lawyers. Other educated workers are also likely to be hit by the ferocious winds of the Information Revolution blowing towards inequality.
Professors, policy wonks and politicians—not just Reich but many of us—need to incorporate these forces into our policy pontifications. Let’s stop over-simplifying and stop over-promising what higher education can do. If we don’t, we’ll misdirect and mislead people like Erika. Continue reading →