The chart of the day comes from the Bureau of Labor Statistics. Pictured above is a chart of the year-on-year percentage changes in healthcare costs in the United States from 1936 to date. As I see it there are two takeaways from this chart. First, look at 1966. What could possibly have caused the massive increase in healthcare costs starting in 1966? Of course, I’m being facetious. We all know what caused that increase and it’s not greater use of technology.
Second, look at the year-on-year increases from roughly 1980 to date. Healthcare is increasing in cost at roughly the rate of inflation. The problem is that practically everything else has seen its costs battered down by overseas competition. All it takes is a steady rate of increase and by the magic of compounding costs become unsustainably high.