Politics

A diminishing U.S. dollar, tightening in the credit markets enabling banks to lend and make a profit, discouraged business owners unable to invest in expansion methods and/or new technology to grow their business, rendering them no choice, but to result to lower wages, massive layoffs, and higher unemployment rates. Inflation is intensifying beyond belief, due to the decreasing purchasing power of the U.S. Dollar, and several other failed policy factors. Although recent activity in the markets have caused a drawback in energy prices leading to deflation…. a sign of relief, this is only because of a bleak forecasted outlook of economic activity for the ensuing months to come, the effects are still damaging to present day life’s. The everyday essential items like gas, water, and food are rising, and our personal income hence our disposable income is steady if not declining, and at the pinnacle of the iceberg comes the baby boomer generation on the verge of retirement.
According to Dr. Michael Ragain (2008) Health Affairs “by the year 2017 one dollar out of every five dollars spent in the United States will go towards healthcare costs”, equating to 20%.
The rising costs associated in healthcare are attributed to many reasons. Some include the amount of money spent on research and development in this country, emerging technology, reduced government reimbursements related to healthcare issues, and the increased utilization of health care services by the elderly, and those with chronic health issues. Whatever the case may, or may not be, the insured, and uninsured are feeling the woes. More companies are raising premiums paid by their employees to offset the rising healthcare costs. It’s also said that healthcare is the 3rd leading expense company’s pay next to payroll, and administration costs. This leaves employers no choice now that market conditions are cutting away at profit margins, but to shift this cost over to their employees.

Healthcare availability is a touchy issue, whether a country has universal healthcare, or a delivery system such as the United States, there will always be problems. The only thing that gets me is that although healthcare costs are going up, why is the quality of care staying the same if not declining from previous levels? With these tremendous strains on our economy two front runners have emerged from the billows of smoke Senator John McCain, and Senator Barak Obama with insightful ideas of correcting the issue. One poses a $5,000 tax credit per family to buy your own policy, which will be taxed by the government, while the other poses universal coverage for those who want it, and imposes fines for those who don’t. (Hmmm) none of these seem like solutions to me.




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