Why Investors Should Back A Government Sponsored Health Care System
Currently, the US health care system can be aptly described as employer based, meaning that employers pick up the majority of the tab for the health care treatment of most Americans. This is very, very bad for investors who own stock or even bonds in American companies. You see, American companies compete in a global marketplace where every single major foreign competitor hails from a country that utilizes a government based health care system. Therefore, these competing companies that are increasingly pressuring US companies have no health care related costs. In effect, the US system acts as a reverse subsidy, which ultimately punishes US investors. Even if it means a small tax hike, which Presidential Candidate John Edwards has called for in his government based health care plan, American Business and American investors will come out well ahead if such a universal government based health care plan is implemented in this country. We are talking about an event that could bring about massive increases in EPS for American companies and ultimately a more stable health care system for all. Its a win-win situation for everyone.
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