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Advisor

Now this is fascinating

http://www.newrepublic.com/article/118370/first-quarter-gdp-result-lower-health-care-spending

 

"But this may be a case of bad news that’s not so badand maybe even good. The reason why consumer spending fell is that health care spending decreased by 1.4 percent in the first quarter. In fact, in the BEA’s second estimate, health care spending contributed 1.01 percent to the growth rate. Under the third estimate, it subtracted 0.16 percent. In other words, health care spending went from a strong contributor to GDP growth to a detractor from itall in a quarter when millions of Americans gained health insurance."

 

Kind of speaks to a concern that I've voiced whereby we have this terrible, inefficient and massively expensive health care system but if we were actually to reform the system to what a civilized country enjoys- say 6-7% of GDP- it would have catastrophic economic impact. Not because of death panels, but because a significant component of our economy has been granted monopoly pricing status and has become a zero sum redistributor in our economy.

 

Please **bleep**can the Obamacare stuff as about 90% of the most vocal critics are merely defenders of the previous status quo.

 

So we have an economy that is primarily based on military spending and charging double for medical services. What could go wrong?

6 Replies
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Advisor

Re: Now this is fascinating

GDP includes government spending. its possible consumer spending on health insurance fell because people switched to policies that were heavily subsidized or went to medicaid. but that would not reduce GDP. its out of the realm of possibility that as is claimed millions were added to health insurance rolls yet the total including government spending was reduced.
Highlighted
Frequent Contributor

Re: Now this is fascinating

Stop and consider what Big Pharma has done to the medical industry and our economy.

Wish they could be made accountable for the Meth devastation found across our country.

Wonder if there are any ties between pharmaceuticals and any other industries that use chemicals like ag?

Tom S. in Tn.

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Advisor

Re: Now this is fascinating

A lot of the same companies and a similar model.

 

They have a lot of R and D and regulatory stuff before they can bring a product to market.

 

Once through the incentive is to market, market, market even if it doesn't fit well, or not. And if something is going bad, too bad, because there is a lot invested in the product and only a limited amount of stuff in various stages in the pipeline.

Highlighted
Advisor

Re: Now this is fascinating

Actually not trying to make anything of it for/against Obammycare.

 

Just thinking about the implications if we rteally did get health spending in line now that we've basically made it into too much of our economy.

 

 

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Advisor

Re: Now this is fascinating

not saying anything for or against anything. just saying I don't think its possible under the circumstances the the fall in GDP was at all attributable to reduced spending on healthcare.
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Veteran Advisor

Re: Now this is fascinating

COme on Sammy, don't confuse Nuts with some common logic.

 

Thinking that our government would even be capable of knowing what was spent on health care since Jan 1, let alone sharing it with the masses is a sign that Nutsy really believes in the competency of the clowns in charge and their minions.

 

Of course, this group (well, not exacty them, but you know...the "PTB" or the stealth govt) could blow up the twin towers and pin it on OBL and keep all of that under wraps for over a decade.

 

These guys are scary.