Friday, August 28, 2009
Economy and Health Care Costs
Writing about American process of recovery from the Great "Recession", we can see the effort of US government to increase its debt amount to finance its economic development. The Government is trying to increase the spending and invest money in banks and other institutions to increase confidence and hence keep the economy going. In this process the Govt has incurred an amount equal to 60-70 trillion deficit in its budget, which on the surface seems scary. The US GDP stands at around 1.3 trillion. Still it is not scary enough as the debt to GDP ratio is much less than other economies which have less stable government and inspite of these they have coped well with the debt. So if we subtract the inflation from this projected debt then it'll be manageable. Also there are other areas to reduce the costs by cutting down them from the HealthCare, which unfortunately has been subjected to the petty campaigns like "pulling the plug from grandma". What is required in this situation is the collective political will to fight against such problems.
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