Wednesday, June 24, 2009

We Should All Listen More to Perry and the Brits...

Perry de Havilland, over at, commenting on what fun things we have to look forward to here in the USA....

Millions and millions of Americans support Obama's desire to even more massively intervene in the market for medical care than the US state already does. And of course Obama's moves are just the opening salvo in a desire to eventually end up with fully socialist healthcare, along the lines of Britain's ghastly National Health Service, which has intermittently tried to kill me over the years.

I have tried pointing Americans at the British example to show them what an appalling idea it is to have the state directing any industry, let alone medical care. But alas it is very hard to overcome that special kind of insular American optimism that does not think what happens in another advanced first world nation can teach them anything, because in the USA things will be different.

Well yes, it will be different... in that the control obsessed Obama's of this world will find new, innovative and oh so wholesome American ways to end up with a third rate health care system much like Britain has today.

This might be a good time for Americans to invest their money in Swiss medical clinics as I suspect in the coming years expatriated medical care will be a serious growth industry... plus it has the added benefit of getting your money out of the USA and US dollar.

The current emergency government run healthcare program we already have is Medicare, which is taking in less money than it is paying out, to the tune of $168 billion in 2006 and $179 billion in 2007.

Add that with Social Security deficits, it gets even worse. According to the American Academy of Actuaries-

Considering Medicare spending in conjunction with Social Security spending further highlights the strain these programs place on the economy. Social Security spending as a share of GDP increases more modestly than Medicare over the next several decades, and as a result, Medicare spending is expected to exceed that of Social Security in 2028. Combined, Medicare and Social Security expenditures equaled 7.3 percent of GDP in 2006. This share of GDP is expected to increase considerably to a projected 12.7 percent in 2030 and 17.6 percent in 2080. Medicare and Social Security expenditures are even more striking when considered relative to total federal revenues. The trustees report that total federal revenues have historically averaged about 18 percent of GDP. Using this average, about 40 percent of all federal revenues in 2007 will be used to pay Medicare and Social Security benefits. If no changes are made to either program and federal revenues remain at 18 percent of GDP, this share is expected to increase to 80 percent in 2040, and by 2080, Medicare and Social Security spending would equal nearly all total federal revenues. These projections highlight the increasing strains that Medicare, especially in conjunction with Social Security, will place on the U.S. economy. Moreover, increased spending for Medicare may crowd out the share of funds available for other federal programs.

Someone needs to explain to me why spending MORE MONEY ON HEALTHCARE will make HEALTHCARE CHEAPER thus saving our economy from catasrophe.

Good luck.

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