The attached graph shows that the cost of medical services jumped from $13 in 1947 to $400 now, over a 5% annual rate of increase. But since 1974 the cost has been growing over 6% per year. This has resulted in the following two GDP shares according to the attached article:
14.4% of GDP for the federal government tax collections, lower than most countries and the lowest share since 1950.
17.4% of GDP for health care vs a 9.5% for healthier wealthy countries. Probably Obama care and increasing sickness of the population will make USA costs rise further.
It seems these imbalances cannot be sustained because of increasing debt. USA will have to quit spending so much on health care or raise taxes to pay for it. Which will it be?
Most of the health care costs are for obesity, addiction, sexual diseases such as HIV AIDS, and Medicaid and Medicare. The costs are paid for by government or health insurance, both ripoffs that drive up the cost of health care for everyone. Is it fair to force people to pay for this mess or should we move to Panama for lower priced medical care?
My opinion is that the government should get out of health care except for the military and maybe medicare. Personal responsibility should be emphasized, such as eat broccoli and walk more. Most people don’t get sick until they are old and by then they will have saved enough to pay for it. I have been paying insurance my whole life and never got sick. The current system is a ripoff that needs to be cancelled.
ln(400 / 13) / (2 011 - 1 947) = 0.0535392998
ln(400 / 40) / (2 011 - 1 974) = 0.0622320295
This year’s federal tax revenues are forecast to equal 14.4 percent of gross domestic product, a broad measure of economic output, according to the Office of Management and Budget. That’s the lowest share since 1950, long before Congress approved expensive programs such as Medicare. Tax collections have been reduced by the recession and by tax cuts enacted in 2001 and 2003. Among 29 countries ranked by the Organization for Economic Development and Cooperation, only Japan and Spain take in less tax revenue than the U.S. as a percentage of GDP. When it comes to health care, the U.S. spends the equivalent of 17.4 percent of its GDP — by far the highest percentage among wealthy nations. The next highest is the Netherlands, where health care spending equals 12 percent of GDP. Among the 34 wealthy countries that belong to the OECD, health care spending averages less than 9.5 percent of GDP.