Wednesday, February 16, 2011
Readings for Feb 16
Everyone should ponder this graph from the 2010 CBO report.
Former NBER economist Brad DeLong discusses the Federal budget situation for the short, medium and long terms.. Short term we need bigger deficit (more federal spending), long term we need to contain healthcare costs, and the graph is shown how healthcare costs grow over time to consume nearly entire federal budget. (BTW, in case you didn't know, through Medicare and other programs, the US government already pays well more than half of the total medical costs in the USA. Private insurance covers younger healthier people, more profit in that.)