Bill Gleeson: Tough challenges for America’s new President

Jan 21 2009 by Bill Gleeson, Liverpool Daily Post

THE whole world seemed to get caught up in the excitement surrounding yesterday’s inauguration of America’s first black President.

Without doubt, those that watched the proceedings witnessed history in the making.

Expectations are high, and certainly President Obama brings considerable intellect and a unique cosmopolitan background to the job.

The word most frequently spoken by Barack Obama during the last year’s Presidential election campaign was “change”.

Among the many things that need changing in America, the top priority is the creation of universal access to healthcare. Don’t be under any illusions, though. President Obama will not be proposing anything like a National Health Service. More than 60 years after the post-war Labour government established its “cradle to grave” principles here, most American voters are not prepared to pay the higher taxes such a system inevitably incurs.

Instead, the most common way Americans pay for health care is through employment- related insurance schemes. All too often, if you’re not in a job that offers health insurance, you don’t get to see the doctor. As a result, tens of millions of Americans are not treated for serious medical conditions such as cancer or diabetes, while over here you can drop in on your GP and get free treatment for even dandruff and other mild ailments.

The “change” the newly inaugurated President is offering is cheaper insurance for those that can’t afford cover at the moment. If you currently get your health needs met by your company scheme, then you will see no difference. You will still receive your healthcare provision through your company scheme.

But this fails to address the crucial issue. American business can not afford the cost of healthcare any longer.

The principal example of this is the car industry. Over the past decades, hundreds of thousands of assembly line workers have become entitled to life-long health cover, including those who work for General Motors.

The provision is lavish by NHS standards, and, since it’s available to retired workers, it is costing the car industry a fortune to keep the scheme going. At a time when car companies are earning no profits and paying no dividends to shareholders, they are keeping many ordinary Americans in good health, so much so, it would be more accurate to rename the car firms “care” firms.

The cost of healthcare has brought General Motors close to bankruptcy. One of the first decisions Barack Obama will make is whether or not to support the car industry with loans or grants, yet loans and grants can not offer a long-term solution to America’s problems.

What is General Motors’ problem today will affect the rest of the country’s economy tomorrow, as more and more people are thrown out of work by the recession, thereby losing their healthcare entitlements.

Sadly, President Obama’s plans for “change” are not going to be far-reaching enough to solve the problem.

But, as pressing as health reform might be, it will have to take second place to the more immediate need to fix America’s economy, and with it the world’s.

The troubles are deep. The cash needed is immense and there is no certainty that any measures will work, but try he must. The biggest risk President Obama faces is that we will still be in recession at the next election.