January 30, 2006
The Recreation Crisis
John Merline at TCS has a contrarian view of the soi disant health care crisis. He posits that a 362% increase in health care expenditures is not a sign of runaway costs as much as it is a sign of a wealthy populace choosing to devote its discretionary income toward quality of life. Look at all these crises (Spending increase, 1984 to 2004, courtesy of the Bureau of Economic Analysis);
| Computers | 1,600% |
| Recreation | 386% |
| Medical care | 362% |
| Higher education | 344% |
| Hair stylists and health clubs | 301% |
| Legal services | 279% |
| Housing | 226% |
| Furniture | 178% |
| Food | 154% |
| Clothing | 131% |
| Gross Domestic Product | 198% |
He admits that third-party payer arrangements have impeded market forces, and he fails to admit that more expensive health care is less avoidable than more expensive recreation. But it is incontestable that the bulk of the increase is truly just the choices of a wealthy nation. Hardly a crisis.