The Theories Of Neo Classical Economics

The NHS and Community Care Act 1990 states that wherever possible services should be provided in the community or in the home as a large amount of money was being spent on residential and care homes for the elderly. The Local authorities must carry out an assessment of needs and must arrange for the care or provision. Also the local authorities were encouraged to purchase care from a mixed economy, including statutory, private and voluntary sectors to encourage competition and increase choice. (Classroom notes, 2014) / (Patient, 2015)

However an alternate, competing explanation of the personalisation reform agenda also emerged. It criticizes personalisation as a form of back-door commercialisation, driven not by need but by an increasingly neoliberal, political ideology of which the primary aims are to cut costs and relieve the statutory services of responsibility for care.

Both market-based and government-financed health care systems strive to manage overall health care costs. The difference lies in the way they approach the task. Market-based health care relies primarily on the force of companies competing against each other to bring the best new products to customers. Customers make their choices based on many variables such as quality, convenience and service, not just cost. Most

This exercise point out some very important factors with regard to health care cost.  nursing homes and other health care delivery systems are faced with significant shortfalls in reimbursement for various reasons.  Medicare reimbursement often does not cover the full extent of treatment of individuals.  McPike (2008) notes that, “The insurance and hospital industries released a study today showing that underpayment by Medicare and Medicaid costs consumers and employers $88 billion more a year for health care as providers attempt to make up the difference.” Today with continue cutbacks in medicare reimbursement this number is significantly higher.  In an attempt to reclaim these losses, both self pay and privately insured patients are charge

Health care in the U.S is still too expensive for many families. So what does the system look like right now and how does health care systems look in other countries? This paper will explore these questions and delineate and differentiate these systems in this paper. The market-based health insurance system in the

marketization of nursing homes is very common in Canada, it is also refers to government efforts to

This study will argue in support of universal healthcare as a financial and healthcare-based initiative in the Unite States. The overarching problem of healthcare in the U.S. is based on the high costs of treatment and insurance company profiteering, which can be controlled through government regulation and price caps on medical costs for the American citizen. Currently, the private healthcare industry is an unregulated “free market” system that does not control the cost of healthcare pricing, which could be regulated by government caps on medical supplies, physician services, and healthcare services. In Canada, for instance, the cost of medical supplies and physician services are limited by the government, which prevents insurance companies and doctors from raising prices for profits. The U.S. could easily apply his method to healthcare services as the

In the case of Australian healthcare, subsidization results in less competition in the market since ‘artificially’ low prices act as a barrier to entry of new more efficient firms. Lack of competition leads to firms not improving their systems and practices, making them inefficient. Consequently, subsidized Medicare also fails to achieve social interests-explain what medicare is more properly. Recently, there have been complaints regarding the poor quality of care in hospitals. Further, the waiting periods for patients waiting to undergo Knee Replacement Surgery is a median of 216 days thus decreasing their living standards. Similarly, the Pharmaceutical Benefits Scheme is failing to provide cost-effective medications. For example, Atorvastatin, highly prescribed drug, costs $2.01 in New Zealand compared to $38.69 in Australia causing a loss of 1.3 billion dollars every year. Therefore, government intervention has led to inefficiency in the workings and resource allocation.

America’s health care is more expensive than other industrialized countries. A common practice among businesses to lower their costs is competition; it provides a healthy balance between businesses and consumer satisfaction. Although health care should not be a business, America has ignored the idea and importance of competition, creating the extreme prices. America’s universal healthcare

Restricted public funds to meet those costs and a strain on the resources of those who pay for their own care.

For example, when a good is scarce, the prices goes up, so consumers try to avoid buying and therefore conserving the resource. Then, the suppliers want to find more of the source as to get a better profit. The reasons behind their actions are selfish, yet they benefit all of society. Smith identified that the pursuit of profit and the power of self-interest would increase motivation and result in more advances in technology. His model of capitalism was on the basis of freedom and selfishness as a motivator for society. It was also on the basis that the economy would go through recessions and expansions but fix itself. Recessions are periods in the economy in which unemployment goes up, while profits and spending goes down; a slowdown of the economy. An expansion is essentially the exact opposite. The classical model of economics states that the economy will continue to go through these fluctuations over time and will fix itself with no help, thus not needing a government to give influence.

For an economy to thrive it must spend money. The amount of money that is spent can vary greatly from one year to the next. When interest rates are low and reasonable, more loans may be taken and this money is put back into the economy. This influx of monies into the economy can create jobs which lower the unemployment rate. A nation must be able to engage in free trade to help import goods and services that it may be lacking in. When a nation has goods and services that it excels with it can export them to other nations that are in need of them. This import and export cycle determines a nation’s trade balance.

growth and low growth of aggregate demand. Keynes urged that the economy can be below full

This paper studies the idea of competition. What is competition? Do we need competition, why do we need it? The paper further elaborates competition in aspects of two school of thoughts, the Classical and Marxist economics.

There are many differences between mainstream economics/neoclassical economics and political economics. Currently, mainstream and neoclassical economics are the dominant approach in economics. They use math to prove theories and to forecast events. If someone progresses as an economics major, they will enroll in statistic classes and econometrics, which is more quantitative. Since mainstream and neoclassical economics are more measurable, there is a higher chance for error. In order to ensure the work is scholarly, it is important to make sure one confirms their calculations. Furthermore, in neoclassical economics, there are many more assumptions. An assumption is an “if” statement that many economists use to explain their thoughts.