In this article, Peter Orszag shows the correlation between rising health care costs and the states ability to fund eduction. American health care costs account for 17% of GDP while the next closest competitor nation pays a cost of only 10% of GDP. America pays 70% higher costs for health care. Because health care costs have risen to such a level, during a downturn, these costs put excessive pressure on state budgets. In such downturn generated budget crisis, higher education is the first thing to go. States cut education to pay for the Medicare costs which have risen along with the spiraling health care costs in general. The tragedy is that, when the economy recovers, funding for higher education is not restored to its previous levels. The result is that as health care costs have funneled tax dollars from education to insurance companies America has fallen from 1st to 12th in the percentage of young adults entering the workforce with a college education.
Anyone who runs a business knows that if our costs are 70% higher than our competitors, we are going to lose the competition. In this case, the competition is for capital investment in our economy. Companies invest in the quality of the national workforce and as our educational levels fall skilled jobs will move elsewhere. While other countries invest their tax dollars in education, in America, we pour our precious tax dollars down a sink hole of rising health care costs. This explains why the decision to fix health care in order to solve the structural economic problems was the right decision to salvage he long term prospects of the American dream even if the result is a political nightmare.
Clinton explains rising health care costs on meet the press this morning.
peace, brad
Clinton explains rising health care costs on meet the press this morning.
peace, brad
3 comments:
Yes, it absolutely needs fixed and it is a huge issue and a drain on the family much less businesses...but the current solution is no solution at all. It just increases the problem. Everyone I know in business is budgeting for an increase in Health Care costs even with the "solution."
tadalafil
Peter Orszag's editorial was an engrossing and motivating read! I hope it was read by the key people at key positions as well.
This is Ibrahim from Israeli Uncensored News
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