Originally Posted by
biggestbopper
I have seen so many of these cycles.
PS. As to Medicare--I suspect we will see successful efforts to cut US medical spending back to around 9-10 of GDP from the 16-18% of today. This would probably solve the Medicare issue. No other country spends so much on medicine and gets so very little for it.
Health care in the US is pretty mediocre. That's why we are told so many times how great it is. Cut costs, save lives!
I agree, there is abundant data to support the statement that US health care is pretty mediocre, at least in terms of outcomes.
But given that medical costs rise at an annual rate 2 - 2.5% points higher than the overall cost of living, how do you think medical costs will be reduced from today's 16% of GDP?
Germane to FlyerTalk, and the OP, "medical tourism" or traveling overseas for medical care may be one tactic, as much lower overseas costs outweigh even the weak US dollar value. Most people think "other people's" medical care costs should be rationed to lower cost, not their own.
The aging Baby Boomer population and expanding high-cost medical technology will drive Medicare (and US budget) deficits through the 2030's or even 2040's, a continuing contribution to the weakness of the US dollar. Global economic cycles may moderate this, but I don't see any real solution to rising medical costs on the horizon. Do you?
I'm increasing my international and global investments in my portfolio. The USD may not collapse, but I don't foresee a strong rally.