Tuesday, September 23, 2014

Obamacare is Reducing Economic Growth, Not Growth in Health Spending

One major criticism of U.S. health care is that we spend more money on health care than any other country. If health spending consumes resources that are needed elsewhere, this could be a problem. The U.S. now spends about 17 percent of its Gross Domestic Product (GDP) on health care. Canada, where government has a monopoly on essential health services, keeps spending down to about 10 percent of GDP. The conclusion, apparently, is that more government reduces health spending.

This is Obamacare’s governing principle. On the face of it, it seems to be working: The rate of growth of health spending is flat. Indeed, it may remain around 17 percent of GDP this year, and for even a few more years.

However, there is no evidence that Obamacare’s increased regulation of health care is causing this moderation.

Read the entire column at the Intellectual Conservative.

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