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Healthcare Costs vs. GDP

One of the main points emphasized in the management electives I’ve taken is the concept of healthcare costs vs. GDP/inflation. It doesn’t matter how much we try to lower the cost of healthcare – if the rate of healthcare expenditure increases faster than the GDP, it won’t be long before 20, 30, or even 50% of the United States’ gross domestic product is dedicated to repaying healthcare-related costs.

The chart above shows how we’re not the only country facing this problem (though we do have a considerable lead). With a growing population and progressively longer life expectancy, healthcare will continue to consume a large portion of our GDP. No one really knows how much wasteful spending is built into our national budget, but Washington really needs to tighten the rope and do something… fast.


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