Health Spending Crushing a Stalled Economy
March’s estimate of last year’s fourth quarter Gross Domestic Product (GDP) showed that health spending was chewing through a weak economy. Today’s release of the advanced estimate of this year’s first quarter GDP might best be described as health spending crushing a stalled economy.
GDP barely budged, increasing by a trivial 0.2 percent annualized. Although personal consumption expenditures increased at a much higher rate, the largest component of that increase was health services, which contributed 0.62 percent to the change in GDP. (Housing and utilities, at 0.59 percent, was second.) Investment spending and exports were in the tank.
Seasonally adjusted at annual rates, GDP increased by only $6.3 billion from the fourth quarter. Health services consumption, on the other hand, increased by $23 billion. This is a dramatic increase in GDP committed to a government-controlled and relatively unproductive sector of our economy.
It’s ironic that this tory is below the Budget Resolution article which would push more expenses onto the consumer which will further stall the economy.
Good Job GOP!
No: Health spending is categorized as consumer expenditure whether it is paid privately or channeled through government.
Allowing people more direct control of health spending would ensure more discipline in that spending.