Armstrong Economics Blog/Corruption
Re-Posted Mar 26, 2017 by Martin Armstrong
COMMENT: With all the talk of the failed healthcare bill, doesn’t people realize the medical and pharma are the biggest lobbyist to Washington? That’s why Ryan didn’t pass the bill.
REPLY: The media will never expose reality. I believe the only way to fix all this mess is to repeal Obamcare in its entirety. Mandate that all insurance must go back to where it was. I know mine would drop by 50%. Then anyone who cannot get coverage goes to Medicaid. Obama just tried to convert healthcare to a TAX which is why the Supreme Court sustained it. It was a tax plain and simple. Any attempt to keep Obamacare and tinker with it will fail. It is 7 feet tall. Here is the original Social Security Act of 1935. (Social Security Act 1935)
Whenever a politician labels and act to pretend it is the greatest thing since sliced bread, you better look closer. The “Afforable Care Act” did not make health insurance affordable for anyone other than those who could not get it and belonged on government systems. The rest of us paid more, not less. Healthcare is a total mess and it has risen to such a high consumption level within the entire GDP, it reduces disposable income of the average household and that acts simply as an economic depressant.
We will simply have to be pushed to the total point of collapse as healthcare keeps growing faster than anything else in the economy except government. U.S. health care spending grew 5.8% in 2015, reaching $3.2 trillion or $9,990 per person. The per capita income for the overall population in 2008 was $26,964. As a share of the nation’s Gross Domestic Product, health spending accounted for 17.8%. Healthcare is bankrupting the entire economy.
In FY 2017, total US government spending, federal, state, and local, is “guesstimated” to be $7.04 trillion. The annualy GDP is estimated at $18.855 trillion. Therefore the total cost of government is 37.3% of GDP. Adding healthcare, this means that non-productive forces have now reached 55.1% of the economy which produces NOTHING but simply consumes. When this crossed 60%, it appears we are in for the collapse of an empire in a true Byzantine manner.