Category: Friedman

In an article for Dollars & Sense, Gerald Friedman, UMass Amherst economics professor, argues that universal health care is the only viable solution to soaring health care costs. According to Friedman, the cost of health insurance has been rising more than twice the general rate of inflation for decades and the share of household income spent on health care has more than doubled since 1970 from 7% to 17%. “If current trends continued,” Friedman warns, “the entire economy would be absorbed by health care by the 2050s.”

While many believe that universal coverage is is fiscally impossible, Friedman conservatively estimates that moving to a single-payer system in Massachusetts would actually save approximately 16%, even after providing coverage to everyone in the state who is currently without insurance. He believes that the percentage of savings would be higher nationally. “This could be done largely by reducing the cost of administering the private insurance system, with most of the savings coming within providers’ offices by reducing the costs of billing and processing insurance claims.” (Dollars & Sense, July 2011)

Additional coverage of this article:

Physicians For a National Health Program, 7/1/11
Truthout, 7/5/11
Zcommunications, 7/5/11
CommonDreams.org, 7/7/11

Gerald Friedman, UMass Amherst economics professor, appeared on WGBY’s Connecting Point to discuss the problems with our current health care system. According to Friedman, 15% of the U.S. population does not have health insurance and approximately one-third of Americans do not have insurance at some point during the year or inadequate coverage. “We have superb health care and wonderful technology, but a growing part of the American population doesn’t have access to it.” 

Massachusetts has done a much better job than other states addressing the problem of access. In fact, 98% of residents are now covered as a result of the health care bill that came into effect in 2006. While Friedman acknowledges that this is a major accomplishment, he is concerned that we have not addressed the issue of cost. He cites accountable care organizations as a possible solution to address the rising costs of health care, but is not convinced they can work within our current insurance system. Friedman believes that ultimately some sort of national health care system, which is the system adopted by many other countries, may be the only solution.

Gerald Friedman, UMass Amherst economics professor, and Jens Christiansen, Mount Holyoke economics professor, appeared on 22News inFocus: Decision 2010.   Friedman and Christiansen discuss the current political climate, voter motivation and upcoming mid-term elections. 

Friedman notes that most people act out of hope, not out of fear.  He believes that a democratic government can work effectively, but is concerned that voters are discouraged and will give up.  This, says Friedman, may ultimately lead them to turn toward an extremist group.  

Friedman and Christiansen also discuss the likelihood that Republicans will gain control of the House and the Senate in November and provide commentary on the gaining popularity of  the Tea Party.  (22News, 9/20/10)

Gerald Friedman, UMass Amherst economics professor, commented in a story about price-cutting in the art market.  According to the article, the art market has been effected by the current world-wide economic slump and, in response, galleries are offering more significant discounts and asking artists to lower their prices.  Friedman comments on how this price-cutting may be perceived.  “Price is a signal of quality and your commitment that this is good art,” said Friedman. “If you cut the price, it sends a signal that this is not a desirable product. If you are an investor, cutting the price is a sign that no one is going to buy it in the future.” If someone wants to buy work by a particular artist, he stated, they will pay the going rate, rather than switch to other artists.  (Huffington Post, 2/26/10)

Gerald Friedman, UMass Amherst economics professor, was quoted in a story by the Daily Hampshire Gazette.  According to Friedman, the nation will need a four percent economic increase to support a significant addition of jobs.

Daily Hampshire Gazette
Experts say ‘vicious cycles’ near end, on the way
By Kristin Palpini

Estimates for how much the economy may grow in 2010 range from about 2 percent to 3 percent, which signifies a slight improvement in gross domestic product over last year.

It isn’t quite enough to prompt a large wave of hiring. Gerald C. Friedman, a UMass economics professor, said the nation needs about a 4 percent economic increase to support a significant addition of jobs.

“There will be acceleration in 2011, but you need to bring down unemployment and you need about 2 million jobs to do that,” he said.