The US without Obamacare is in the same Financial Mess as the UK who already has the NHS

Posted by PITHOCRATES - March 17th, 2013

Week in Review

The British Empire ruled the world for a century or more.  And they did that with representative government.  Capitalism.  And free trade.  Making the empire very wealthy.  And strong.  Allowing it to rule the world.  The devastating costs of World War I pretty much put an end to that.  And after World War II they nationalized health care.  With the NHS.  And some industries.  Becoming a social democracy.  Like much of Europe.  Labor strikes and power outages were so common in the Seventies they called it the British disease.  It was difficult to see the greatness that was once the British Empire.  The great nation that modernized the world.  Farming advances.  Representative government.  The Industrial Revolution.  Capitalism.  The things that built the great nations of the world today.  Things you didn’t think about when you looked at Britain in the Seventies.  Lady Thatcher brought some of that greatness back.  Improved the economic well-being of the nation.  But it didn’t last (see Osborne must make tax open and honest by Matt Sinclair posted 3/17/2013 on The Telegraph).

The Government is still spending nearly half of our national income. No country has ever financed that except by imposing punishing taxes on families making quite ordinary incomes. The alternative of making the numbers balance by taxing the “one per cent” just isn’t grounded in reality. First, there aren’t enough of them. Second, they won’t sit around like obedient little cash cows, and placidly continue to invest in this country, as we confiscate their incomes or levy swingeing property taxes on their homes.

Then there is the longer-term problem of demographics. Everyone is worrying about economic growth in the next quarter. But as the population continues to get older, none of our leaders seems to be asking how we are going to pay for the big NHS and pensions bills that are likely over the next quarter of a century.

Public spending has already reached its limits: our levels (at 49 per cent of GDP in 2012, according to the OECD) are higher than those in Germany, and could soon eclipse those of Sweden. The extra pressure caused by an ageing population means the existing system is unaffordable.

Sounds familiar.  Currently total government spending in the U.S. at all levels of government is approximately 40%.  Government at every level is trying to raise taxes. Even on those making ordinary incomes.  The government talks about making those who can afford to pay more (the 1%) should pay more.  But there aren’t enough of them.  Even if you take everything they earn.  We have an aging population, too.  And we have a system that is unaffordable as well.  There is really only one difference between the UK and the US.  The UK has national health care.  They have the NHS.  While the US is working towards a national health care.  Starting with Obamacare.  Which means things will get far, far worse in the US.  Far worse than they are in the UK.  Especially with the US having five times the population the UK has.

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