I made this chart in 10 minutes after finding the data on the US Census site.
1980-82 is "100"
Here is the question: What happened in 1980 with healthcare? It was tracking with everything else. I think I understand the sudden drop in Apparel as part of the post 1989 opening up of trade and the drop in commodities. Did the health insurance system change?
Comments welcome.
Posts
It may be due, in part, to the introduction of HMOs in the 1970s. Once they were properly organized, and had a hold on an area, they were free to set the cost of health care.
ReplyDeletePotentially. Another reason could be that in a world where other more direct material goods are getting ever cheaper, the disposable income had to go somewhere.
ReplyDeleteTry to get a handle on the cost/benefit of "health". How much is being healthy worth? You could say "priceless" but that doesn't answer the question. Or maybe it does...
Provider pricing power plus a consumer disconnected from the direct cost of treatment is probably part of the answer.
Thanks for the comment, BTW! My first ever comment on my first ever blog!
Great question Layne! A good graph for us to debate as we consider health care system changes.
ReplyDelete