The Coming Great Recession, Brought to You by the Healthcare Cartel

Why the coming Great Recession is brought to you by the Healthcare Cartel is painfully simple: in an era of stagnant household incomes, every additional dollar devoted to rising healthcare insurance, outrageously unaffordable medications and soaring co-pays is one less dollar that’s available to be saved, invested or spent on something other than healthcare.

Recent headlines tell the story: off-patent medications suddenly leap in price, healthcare premiums jump 25+% in a single year, co-pays increase and the deductibles on many insurance plans are so high that the coverage is more phantom than real: if you have to spend $5,000 before your insurance plan pays $1, what value is the coverage?

If the plan costs $5,000 a year, but doesn’t pay a dime of expenses until you’ve spent $5,000, then the plan actually costs $10,000.

No wonder rising healthcare costs are tightly correlated with recessions, as longtime correspondent B.C.’s chart reveals: as healthcare expenses consume more oxygen, the rest of the economy starts gasping for air:

Total healthcare expenditures are generally under-estimated, distorting the full consequences of soaring healthcare:

Adjusted for inflation, healthcare expenditures have risen 55% since 2000:

Compared to our developed-nation competitors, the U.S. spends an inordinate amount of healthcare spending on the elderly. Why? because it’s so profitable, and the federal government pays the bills, no questions asked–even when the billing is fraudulent or inflated, or the medications and procedures are needless or even harmful.

So what happens when an insatiable state-mandated cartel attaches itself to households with declining real incomes?

There is less money to spend in the rest of the economy, which stumbles into recession.

Of related interest:

Can Chronic Ill-Health Bring Down Great Nations? Yes It Can, Yes It Will (November 23, 2011)


This entry was posted in General and tagged , , , , . Bookmark the permalink.
  • Dec 1, 2015 The Perfect Economic Storm Is Here – Mike Maloney

    Never before in history have all the governments of the world laid down the foundation for the perfect economic storm. And in this just-released presentation from Mike Maloney, you’ll discover why we can not avoid it. It was recorded LIVE at the 2015 Silver Summit. And it’s loaded with new research that proves a financial crisis of epic proportions is headed straight toward us.

  • November 30, 2015 The Lull Before The Storm—–An Ideal Chance To Exit the Casino

    Last night’s Asian action brought another warning that the global deflation cycle is accelerating. Iron ore broke below $40 per ton for the first time since the central banks kicked off the world’s credit based growth binge two decades ago; it’s now down 40% this year and 80% from its 2011-212 peak.

  • ObamaCare: What You’re Not Being Told

    Let’s take a look at ObamaCare without the party politics.

    • jadan

      Both these videos are dispiriting, not because they do not tell the truth but because they do not offer a solution. They are appropriate comments on Smith’s views, and like Smith they don’t suggest there is any way out. It is useful to know that we are in a hole and how we put ourselves there, and given that this dilemma is clear to any thinking person, it is even more useful to stop digging and suggest some possible means of climbing out.

      • Always start over would be my suggestion where everything took the wrong turn down the wrong way path. In essence start over again!

    • diogenes

      Speaking of party politics — and remembering that Mr. Silver’s opposite Republican player is also under indictment, here’s a love quote from today’s New York Times — the newspaper that never saw a war it didn’t love or a lie it wouldn’t print —

      “Corruption, of course, has endured in Albany for generations.”

      No shit, Sherlock!

  • How Government Solved the Health Care Crisis!

    • diogenes

      Thanks for this. In the 20s & 30s unions as well as fraternal societies were involved in this movement and costs to members were on the order of 25 cents a week. What neither this film nor CH Smith addresses is that the key player here is not government but government usurped and employed as a tool for finance. The fraternal societies arrangements were a form of insurance, but they were local, small, self-monitored, so they involved no bureaucracy of middle-men, no centralization of finance for Wall Street and no investor rake-off. The central function of all forms of insurance, from the point of view of finance (Wall Street) has always been as a method of aggregating money into large sums under the control of financiers operating in their own interests. The core problem here, as in so many other fields, is the dominion of the 0.01% of financial oligarchs whose headquarters is Manhattan. A problem I have with nearly everything Mr. Smith publishes is that he accepts this matter unquestioningly, as a fact on the order of the law of gravity, rather than as a human contrivance, a network of legal fictions — like corporate personhood, and fractional banking, interest (usury), stocks and bonds. All these contrivances are based on legislation passed by legislatures serving the interests of that same oligarchy because they were and are usurped and dominated by those interests. Until we see this situation naked, we are still believing in the Emperor’s Clothes, or pretending to. Which is it with Mr. Smith?

      • mulga mumblebrain

        It’s simply parasitism as in Nature. One group, the parasites, sucks the life-blood out of the host, humanity. Hence the ubiquity of psychopaths amongst the political and business elites, and the success of philosophies, ideologies and cults that see a tiny group as Supreme over the vast mass of scarcely human untermenschen. Hence, also, the merciless genocidal cruelty of the elite.

      • This is allowed again in ‘O’ CARE!

        Proven. Medi-Share is a healthcare sharing program where Christians share financial resources to pay each other’s medical expenses.

        Since 1993, over $908 million has been shared and discounted among Medi-Share members. It’s a proven biblical model of healthcare–Christians helping Christians. Sensible Stewardship. Medi-Share gives Christians the assurance that their healthcare dollars are helping fellow believers who are living God-honoring lifestyles, based on biblical principles and service to others. With options that fit every budget, and even an incentive available for our healthier members, Medi-Share is sensible stewardship for Christians who don’t want to be left alone to pay their medical bills. Ministry. Christian Care Ministry is a not-for-profit ministry where the members make the rules–and their dollars don’t support unbiblical choices such as abortion, or drug or alcohol abuse.

  • supideO


  • mulga mumblebrain

    Parasitism almost always end with the parasites killing their host, in this case humanity. I long ago gave up the idea that this destruction was inadvertent or accidental. Now I believe it to be deliberate genocide, a plan to be rid of the 90% of ‘useless eaters’ that the parasites fear and hate.

    • animalogic

      I agree completely…tho i wonder whether that 90% is wise….i mean, would that leave enough people to clean elite toilets, mow elite lawns, service elite perversions and lusts ? Perhaps a figure of say 85% would be safer ? Anyway what’s a 100 million souls one way or another….?

  • animalogic

    Perhaps someone could tell me: are there legal, medical or practical difficulties to creating non-profit community health insurers in the
    US ?
    Have such insurers actually been created and operated successfully ? Thanks.