Healthcare Cost Are Too Much of a Burden for the Middle Class

Why we need the revolution.

Where, Oh where has the middle class gone
Oh where, oh were can they be
They used to be everywhere
But now I do not seen them near me.

How many parents in the middle class expect their children to be in the same class when they grow up. The answer my friend is less and less of you. The cost of being here is just getting to expensive and our life styles take the hit for it. We earn less money, cannot afford the cost of education. Looking to the government for help only means increase is government spending, deficit financing and increased threat of inflation. You cannot get money from a stone but they government will promise it to you and then run as fast as they can when the system no longer can handle their nonsense.

There is an answer to the problem. It is in front of us yet not many of us see it. And many who see it just find a way to say they do not see it. The answer my friend is blowing in the wind. The answer is a grossly expensive healthcare system. It is like an elephant that consumes a huge amount of food every day just to keep going. It is a system dedicated to the prostitution that some people are allowed to get very rich while others continue on the slow decline to poverty.

Healthcare in America right now is eating up close to 20% of Gross Domestic Product while every other developed country that the US economy has to compete against is able to provide healthcare for about 10% of GDP. In basic terms, it means that in the US every time the cash register for a business makes a sale twenty cents of every dollar of the sale will go to healthcare while in most other countries only ten cents of every dollar spent goes for healthcare. These countries do the same job at half the cost and at the same time their people are healthier and they live longer.

How much is ten percent of GDP and the answer is it is a hell of a lot of money. It is a staggering amount. But many people find it difficult to comprehend. But lets reduce it to simple math. The total GDP for the US in one year is about 15 trillion dollars. That is the sum of all goods and services produced in America in one year. Healthcare is 20% of that total and 20% of 15 trillion is 3 trillion dollars ($3,000,000,000.00). If the US had a healthcare system similar to Germany where healthcare costs 11% of GDP the cost would be about $1.65 trillion ($1,165,000,000,00) Now we subtract the difference between the cost of the current US system and the cost of a German style system and it comes out to one trillion, four hundred and fifty billion dollars ($1,450,000,000,00) a year and that is a respectable measure of the amount of money the US economy wastes in unnecessary healthcare costs.

Now these are big number but most people just do not understand how big these numbers are. Most people do not understand the difference between a million dollars versus a billion dollars and when the numbers get into the trillions most of us are lost. So now it is necessary to give the reader some idea on how much money $1.45 trillion is.

If we used all the money that is wasted and gave it to the military the US would be able to triple the size. We are currently spending about 4 -5 % of GDP on the military which comes to about six hundred billion dollars a year ($600,000,000.00) The waste is more than twice this amount.

It would look as follows:
Total healthcare waste ——-$1,450,000,000.00
Yearly cost of military ——-$ 680,000,000.00

If you are still not convinced of the huge waste lets present it another way.
The recent wave of bank failures that forced the US government to bail out the banks for unbelievable amounts of money through the Trouble Assets Relief Program amounted to about $800 billion over a three year program. The waste in healthcare spending in one year is approaching double this cost in one year. During a three year period at the current level of waste the US banks could collapse four or five times and it still would not equal the waste in healthcare industry.

It would look like this
Waste in healthcare this year.— $1,140,000,000.00
Total cost of bank bailout ——- $ 800,000,000.00

One day, about three years ago, while sitting in the general store in Syria Virginia talking to the locals we got into a discussion about the size of the waste in healthcare. At that time the estimate for the amount of waste was $800 billion. I told this to the locals and they just stared me and said they had no idea how much money that was. I then thought for a minuet and said. “Lets talk in terms of military spending. The is enough money to buy for the US Navy in one year somewhere between 60 to 70 Nimitz class nuclear powered aircraft carriers a year. The Navy currently has eleven such ships that they got over a period of about 20 years. If we use the waste for there ships the Navy would get a huge increase in ships every year. This hit home. One of the locals at the local table had recently retired from the Navy. He knew something about the cost of the ship and nodded his head and said, “That is about right.” At that moment my estimate was collaborated by an expert and every one then agreed we needed a Canadian style system.

I guess at this point you are beginning to understand the magnitude of the problem. But there is one more way to explain how it is killing America. Current estimates is that the US is currently spending $8500 a year per person for healthcare and Canada spends about $4,500 per person. That is a difference of about $4,000 a year. For a family of four people this amounts to $16,000 a year. Over a ten year period it amounts to $160,000 a year and for a thirty year period of the average persons working career it amounts to a half million dollars. This is the money the average middle class needs to pay off student loans, to pay down the mortgage for the house and to save for retirement. Because so much money is being channeled to a wasteful healthcare system none of these objections are being properly met and the family structure and middle class values are continuing to decline.

Now the last comment. This is the most galling aspect of the whole problem. Of the huge and excessive cost of healthcare in the United States about half of it is paid for by the State and Federal governments. In fact the per capital cost is over $4,000 a year and is almost at the same level that the Canadian socialistic system pays each year for a healthcare system that covers almost everything. This means that if we had our head on right the US could run a socialistic system that covers everyone for about the same cost, it would allow for the reduction of individual healthcare to almost zero. What is stopping us from doing it is a fear of socialism. Yet the country believes in competition and companies and society should be able to compete with each other to get to the system that is the most efficient. But this is limited to competition in the private sector. It does not include competition between different economic systems. The free market has proven many times to be very inefficient and at other times to be very efficient.
Government programs at times have proven to be about the same – some times inefficient and some times inefficient. But for some odd reason the American economic system accepts competition only from the private sector and refused to realize that the public sector at times can be a lot more efficient. However, the view from the Revolutionary HQ is that we have to allow for the public sector to compete with the private sector. Over time this will shift back and forth. Years ago the free market gave the country a highly efficient healthcare system that we were proud of. Today it is a national disgrace. If we turn sectors of it over to the public sector it will encourage the private sector to put its act together, get competitive once again and then once again meet our needs. To do this we need help from the reader by joining the Revolution. One million twitters a day, one million postings in Facebook about the revolution and we will get the job done.