Genetically Engineered Human Capital?

Posted: November 10, 2012 | Author: | Filed under: ethics, Healthcare, human capital | Leave a comment

NPR reports that geneticists have crossed a line that has been considered taboo: They changed human DNA in a way that can be passed down to future generations. The researchers at Oregon Health & Science University say they took the step to try to prevent women from giving birth to babies with genetic diseases.

Applied to such health issues, over a long haul, it could make richer nations genetically predisposed to better health. Stronger health, in turn, may create economic opportunities that might not otherwise exist. One can imagine that this could widen existing gaps between emerging economies where such technologies are less likely to be applied. Of course, it may also exacerbate such gaps within wealthy nations where income inequality is already a hot-button issue.

This assumes all that the technology is not applied to more controversial traits like enhancing intelligence (which we can’t even measure very well much less identify a gene that would have such an effect).

You can listen to the story by clicking here.

Healthcare Price Control Shuffle…

Posted: September 1, 2012 | Author: | Filed under: economics, Healthcare, incentives, law and society | 3 Comments

Romney and Ryan have incorrectly characterized Obamacare as a “Raid on Medicare” and news organizations and the Obama campaign have fired back that is it actually a program to reduce healthcare costs — an important achievement of the administration. This whole discussion misses the fundamental point that $716 billion in savings would be the result of mandated price controls. Given that this is a major intervention, it is important to understand how these altered incentives will affect the U.S. healthcare system.

Medicare currently pays providers 30% less than private insurers and Obamacare will further reduce that to save $716 billion in payments to providers (hospitals, doctors, etc.). At the same time, broader coverage (another goal of the new law) will undoubtedly increase demand for services. How will these effects play out?

We already know that some providers are less willing to accept Medicare Read the rest of this entry »