Will cutting health care cost help the economy? I do believe and desire, in theory, universal health care; however, an economic argument is being made for cutting health care cost. I take issue with that. Why? The reason being that everything that is spent represents revenue or income. Hence, cutting spending will cut revenue and income in the health care industry. The health care industry has been one of the largest and strongest growth sectors of the American economy. It provides billions, if not trillions, of dollars of income for Americans. It’s an industry that does not suffer from foreign competition and outsourcing of jobs. So radically reducing spending in the health care industry will save the government and the insured money at the expense reducing the income elsewhere, with results in no net gain. Also, when money is redistributed from the health care industry into the pockets of the average American consumer, they are likely to use that extra money to buy foreign made goods, which does not create income for Americans, unlike the money that went to the Health Care industry. Thus, it could represent a net loss.
The thing that our economy really needs is PRODUCTION and production that we can EXPORT to transfer income and wealth from other places to our place, thus increasing net income.