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The fruits of empire rot on the vine: United States health policy in the austerity era

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  • Bodenheimer, Thomas S.

Abstract

Since 1970--with the decline in the hegemonic empire--the U.S. economy has entered a period of lower profitability, producing a major shift in the economic behavior of corporate capital. In contrast to the demand stimulation (New Deal) programs of the earlier period of prosperity capitalism, capital has moved toward a profit stimulation strategy in the current era of austerity capitalism. Fundamental to this austerity strategy is the drive to reduce costs of production. Both governmental and employee health benefits represent a cost of production. Thus in the health field, austerity strategy signifies a reduction in the provision of health benefits to employees and cuts in governmental health programs. An effect of austerity capitalism may be that health patterns now mainly confined to the underdeveloped world will become more prominent among the low-wage and unemployed sectors of the working class in the United States.

Suggested Citation

  • Bodenheimer, Thomas S., 1989. "The fruits of empire rot on the vine: United States health policy in the austerity era," Social Science & Medicine, Elsevier, vol. 28(6), pages 531-538, January.
    • Handle: RePEc:eee:socmed:v:28:y:1989:i:6:p:531-538
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    Cited by:

    1. Berliner, Lauren S. & Kenworthy, Nora J., 2017. "Producing a worthy illness: Personal crowdfunding amidst financial crisis," Social Science & Medicine, Elsevier, vol. 187(C), pages 233-242.
    2. Kamran Nayeri, 1995. "Economic Boundaries of Health Care: Factors Influencing Reform Proposals," Review of Radical Political Economics, Union for Radical Political Economics, vol. 27(4), pages 56-82, December.
    3. R A Kearns & J R Barnett, 1992. "Enter the Supermarket: Entrepreneurial Medical Practice in New Zealand," Environment and Planning C, , vol. 10(3), pages 267-281, September.

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