I have no problem with big pharm making profits. It's hugely expensive and risky to develop new drugs and bring them to market. They make new pricy drugs; older drugs get cheaper. There's now a vast array of drugs at every price point.
There's the problem that they aren't interested in developing drugs that wouldn’t necessarily profit much but would save millions of lives. They also use universities, public money basically, to developing drugs that they then patent and get all the profits from them. The old drugs also get cheaper because there's laws for patents expiring in certain time and if there wouldn't be that, the old drugs would never get any cheaper.
In Finland, Sweden and Ireland some people got problems from not enough tested swine flu vaccinations (this is also one of the problem with market based drug industry, they want to push new drugs to the market as fast as they can). A lot of children got narcolepsy and since the Finnish government bought the vaccines to everyone, the Finnish government is now paying for the consequences, not GlaxoSmithKline as one would expect. There's been talk about the government demanding some kind of compensation but it's not going to be even near the amount that the Finnish government is going to have to put for it. These kind deals are very sweet for the companies. This is one of the biggest problems I see in neoliberal economy, the losses are shared with everyone but the profits belong only to some.
There's plenty of money in the US heathcare system now. It does need to be regulated differently. But there will be a huge pushback. US doctors make MUCH more money than other advanced countries (It's why half of the doctors at my local hospital are foreign born).
You think they'll be happy with less? Probably not.
The doctors come from other countries because they are offered better deals in the US, very true. But the reason the doctors are foreign is that there's not enough American born doctors who would like to take the low paid shitty jobs at your local hospital. They have paid a lot for their education unlike the foreign ones so they can afford very easily to come and USA reaps the benefit from the money other countries put into educating these people. It's the same problem in Europe too though because the system has been changed to be more like the American. Is it better to look after the doctors' best interests, or the states', and patients', tax payers'... The doctors would make a nice living even if they wouldn't be paid so much, but in US that would demand education that wouldn't cost so much. There's another big industry. But yeah, there's a lot of money in the healthcare system there, the trouble is that the money is benefiting only some, not all. It might feel ok if you're rich enough to use the system, but for those who can't, it's a situation where they probably spent the rest of their lives in because in reality, for someone to win, someone has to lose.
As to the larger socialism question, generous state benefits will become harder to sustain. There are billions of third world people who want to do YOUR job, and will do it much cheaper. As they become more capable, the competitive pressure will grow.
They wouldn't do if they wouldn't have to, cheaper that is. Companies use child labour and/or pay so small wages that people cannot support themselves with them and make them work around the clock, even sleep in the factory floor. In those countries corruption is a huge problem and makes it easier for the companies to use the system. The losers are the poor, the uneducated. The educated people aren't any cheaper nowadays anywhere, they can move easily enough and get better wages from the rival.
Generous state benefits wouldn't be so hard to sustain if the politicians wouldn't follow the liberal economics thinking of small state and as little regulations as possible. If the state doesn't get taxes and doesn't own businesses that are important to the country, then of course it doesn't have money. The talk about states being in debt and needing to cut consumption which means lay-offs and cuts doesn't really make any sense either since states aren't private persons, it's not the same thing. Those actions don't benefit most people living in that state, only the ones who make money from lending to states and getting businesses that are used by nearly everyone, even mandatory, but still they get privatised as we have seen before and are seeing the same now with the Euro-crisis. For loan givers it's very secure business, to give money for the states especially if they can get them to pay high margins, so of course they lobby for this thinking and of course if politicians only think their own interests then the result is this.
Also, I remembered this article about the US banking crisis, the same thing keeps just happening because the current system is broken... the banks and investors use the system without offering anything back
http://nullrefer.com/?http://www.wa...2/01/AR2010120106870.html?sid=ST2010120106876