As I stated earlier, the current healthcare costs scenario hurts our economy. It's clear that the costs in the US are by far the highest in the world.. The US has been experiencing a slower recovery from the Great Recession than other industrial nations. Is the high cost of healthcare a contributing reason?
Here's an interesting article from Forbes to consider:
The U.S. Does Not Have A Debt Problem ... It Has A Health Care Cost Problem
"ThatÂ’s not my line, I took it from The Economist, but itÂ’s a good one. If health care costs were under control, i.e. growing no faster than the economy, we could manage our debt. However, health care spending is growing at about 1.5x the rate of growth of GDP and is already close to 20% of the economy. In this post I will talk about the scary numbers. In the next post I will offer some thoughts on what we can do manage the situation.
If the trends of the last 20 years continue, health care spending will eat up U.S. GDP in our childrenÂ’s lifetimes. See the first chart. The blue line is the federal governmentÂ’s projection of health care spending. The red line projects spending at the trend growth rate of the last 20 years.
Health care spending will eat up the federal government’s budget even sooner, and that is the root cause of the U.S. sovereign debt problem. The second chart shows projected federal spending on health care as a percent of GDP rising from 5% today to about 18% of GDP, leaving no room for social security, defense, or any of the other federal government roles. In 2012 the entire federal budget is about 24% of GDP, up sharply from 20% before the financial crisis. If this forecast comes to pass, either taxes will rise to Swedish levels, or the U.S. will be a junk-quality sovereign credit like the European “PIGS”."
For more go to:
The U.S. Does Not Have A Debt Problem ... It Has A Health Care Cost Problem - Forbes