April 1, 2013
Economic Terms and Health Care History
Throughout hundreds of years, the health care system in America has grown and changed in tremendous ways. From the way health care is delivered to the way it is funded, health care is constantly changing and advancing. This essay will explore the terms and methods associated with health care funding and the history that led to our current world of health care today.
In basic general terms, economics is the term given to the science that explains the relationship and correlation between the production, distribution, and consumption of goods and services, as well as the welfare of humankind. Our expanding knowledge of economic trends and principles is what had guided us into the future of health care.
One of the most basic principles of economics is the rule of supply and demand. This law states that when the supply of a product or services increases, the demand for it decreases. Adversely, if the supply were to decrease, the demand would therefore increase. The demand of any given product or service determines the price the average person is willing to pay to receive it. For example, a person would be willing to pay more for a product that is low in supply because it is high in demand. This rule of supply and demand is what has allowed us to learn how to manipulate our economy and control the different ways in which we are able to market goods and services.
Our economy has gone through many stages with regard to health care over the past several decades. One of the biggest concerns discussed in health care today is the amount of funding being absorbed by our health care system. Over the course of the past decade, The United States has been faced with a recession that has resulted in higher unemployment rates and lower income levels for a large percentage of Americans. This recent trend in economic stability has focused more attention on the amount...