I fight back with facts — and think for myself instead. The real money of ordinary people holding accounts in those banks could have been protected for much less than the cost of even the first public TARP bailout. Overall, Americans spend an incredible 94 percent of their disposable income.
Posted on February 9, by Scott Alexander I. Tyler Cowen writes about cost disease. Cowen seems to use it indiscriminately to refer to increasing costs in general — which I guess is fine, goodness knows we need a word for that.
Cowen assumes his readers already understand that cost disease exists. So I thought I would make the case for the cost disease in the sectors Tyler mentions — health care and education — plus a couple more. There was some argument about the style of this graph, but as per Politifact the basic claim is true.
Per student spending has increased about 2. At the same time, test scores have stayed relatively stagnant. School spending has been on exactly the same trajectory before and after that time, and in white and minority areas, suggesting that there was something specific about that decade which improved minority but not white scores.
I discuss this phenomenon more here and herebut the summary is: Costs really did more-or-less double without any concomitant increase in measurable quality. Which would you prefer? Sending your child to a school?
Second, college is even worse: My parents sometimes talk about their college experience, and it seems to have had all the relevant features of a college experience. The graph is starting to look disappointingly familiar: The cost of health care has about quintupled since This has had the expected effects.
Life expectancy has gone way up since In terms of calculating how much lifespan gain healthcare spending has produced, we have a couple of options. Start with by country: Some people use this to prove the superiority of centralized government health systems, although Random Critical Analysis has an alternative perspective.
In any case, it seems very possible to get the same improving life expectancies as the US without octupling health care spending. The Netherlands increased their health budget by a lot aroundsparking a bunch of studies on whether that increased life expectancy or not.Informed, Nuanced Analysis on Libya.
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