Do you understand Obama Care? If you do, I think that you are one of the very few who do. I know that the average American citizen has an interest span of a fly and thus can not keep their eyes open long enough to listen to a detailed explanation. For that reason, I have come up with the simplest and the shortest explanation of Obama Care. You don't think that I can do that? Well, here it is.
The cost of health care in Canada is 11.9% of their total GNP. Canada ranks 5th in the world in terms of the amount of their GNP that they spend on health care. Data from Canada shows that their cost of health care is growing at the rate of between 6-7% while their growth in GNP is only growing at just over 3%. Since Canada is one of the best educated countries in the world, they know that with the growth in health care cost growing at 6-7% and the growth in their GNP growing at only 3%, in the end, health care is going to bankrupt Canada. Can you understand how bad the health care situation is in Canada? If you can't, don't read on any further. You would be wasting your time. Now how about us?
We are spending 17.4% of our GNP on health care today and Obama Care has not even started yet. Our GNP is growing at less than 2% while our cost for health care is growing even faster than Canada's. The cost of health care will grow just like the cost of college has grown faster than the GNP because more government money is being pumped into it. The current growth rate in health care cost in the USA is higher than the 6-7% in Canada right now. When Obama Care really kicks in, the current growth rate in health care will continue with the addition of inflation due to more tax money being pumped in. That is the way it is going to be, so get used to it.
I predict that with in 4 more years the cost of health care in the USA will be over 25% of our GNP. What kind of quality of life do you think that we will have in 4 more years when we will be spending so much of our GNP on health care? Do you see anything that is going to get our growth in GNP up to a level that can off set the increase in health care? I don't. Is there anything in Obama Care that will reduce health care cost? I don't think so. If you think that we can afford to spend 25% of our GNP on health care, you need mental help!!!!
PS----Canada has a longer life expectancy than the USA while spending less on health care both in absolute numbers and as a percentage of their GNP. Can we take a lesson from Canada? Canada also spends much less on education in both absolute numbers and as a percentage of their GNP, but still ends up with a much better educated population. We have to realize that more of our GNP is spent on health care and education than just what the governments spends. We need to look at these numbers in "total" and as a percentage of our GNP. If we take out so much for health care and education, that leaves that much less for other aspects of quality of life. We need to change how we look at social costs because our economic resources are not unlimited.
PS---Look at what happened to home prices when the government pumped more of our GNP into homes with easy low interest loans. It always ends up the same when government pumps money into anything. Inflation!!!! I know that "one movers" will have a difficult time understanding this simple fact. Look at health care, education and home prices? It always works out the same way. By the way, Canada's government did not pump money into homes like we did and yet they have a higher level of home ownership than we do. Didn't know that did you?
