Re:America's misguided culture of overwork
by yummyfajitas on Thursday August 26, 2010 @01:18PM
(#1636538)
Financial inequality measures inequality in spending, not affordability.
The way they calculate it is to take sum |marginal_spending[i] - avg_marginal_spending|^a (I think a is 3, but I'd have to double check, I do recall that a > 1). So if 50% of people pay $1000 out of pocket for health care and 50% pay $0, you are penalized for being unequal. If everyone pays $2000 in taxes, the inequality penalty is zero. That's nothing but a penalty for non-socialized medicine and for copayments.
It's such a screwed up measure that increasing health or responsiveness for some of the population (or lowering costs for some, but not all) can reduce your score (if the magnitude is large enough)!
If you want to measure the baseline level of healthcare in a country (e.g., the bottom fifth percentile, or something), go ahead and do it. The WHO didn't do that. They ranked nations in order of how closely their health care systems resembled what some WHO bureaucrats thought an ideal health care system would look like.
The way they calculate it is to take sum |marginal_spending[i] - avg_marginal_spending|^a (I think a is 3, but I'd have to double check, I do recall that a > 1). So if 50% of people pay $1000 out of pocket for health care and 50% pay $0, you are penalized for being unequal. If everyone pays $2000 in taxes, the inequality penalty is zero. That's nothing but a penalty for non-socialized medicine and for copayments.
It's such a screwed up measure that increasing health or responsiveness for some of the population (or lowering costs for some, but not all) can reduce your score (if the magnitude is large enough)!
If you want to measure the baseline level of healthcare in a country (e.g., the bottom fifth percentile, or something), go ahead and do it. The WHO didn't do that. They ranked nations in order of how closely their health care systems resembled what some WHO bureaucrats thought an ideal health care system would look like.