In article ,
Manster wrote:



Overall.......but what about the inflation rates in healthcare, housing,
etc. Some of those costs are just now starting to gain. In 1960
healthcare was only 5.1% of GDP, in 1985 it was 10.1%, 2003 had it at
15.3%....and estimates are that by 2013 it will be at 18.4%. In the last
40 years annual per capita costs for healthcare have gone from $143 to
$5670.
Inflation in healthcare is largely driven by the 80% subsidy of
cost, including the out-of-pocket part of the premiums) by others. Does
all sorts of nasty stuff to demand and thus costs. Especially with high
barriers to entry in the market..it takes 8-10 years to "build" a new
doctor. Also health inflation is overstated by the gross figures.



"Workers with employer-sponsored health insurance will often experience
reductions in real (after adjusting for inflation) wages reductions (or
wage growth) in response to health care cost growth. The empirical
evidence has tended to show that health care cost increases are offset
by either direct wage reductions, increased employee cost sharing, or in
instances where wages are fixed (i.e., unionized contracts), by
increases in the number of hours worked."

- - From here - http://tinyurl.com/2tqxgx

This because health insurance has ALWAYS been part of the pay package.



Tax revenues are up 37% since the Bush tax cuts took effect.

I've heard this, if it's "true", why is the deficit still growing?? Must
be because the administration is spending it all....and more. And in the
meantime we've got people without healthcare, our infrastructure is
crumbling.....etc.

Because pretty much everyone in DC is ignoring the spending side. If
rev are up, the only way the deficit can go up (and it has been
shrinking again the last couple of years) is if spending goes up more.
Inflation in US government spending has been even higher than health
inflation over the years. Don't know why so many people zero in on rev
and studiously ignore spending.. .although probably because spending is
so much more fun.