Chart shows government healthcare takeover

Chart shows government healthcare takeover

This chart shows how the U.S. government took over healthcare from the private sector — sharply reducing our control over our own health. And it began long before Obamacare/Covered California, which will increase the takeover even more. Even if you somehow can avoid direct contact with the government health-care system, it still exerts so much influence you’re affected.

Those who favor legal abortion say “women should control their bodies.” But in America, the government controls all our bodies.

health care takeover

As former Budget Director David Stockman wrote:

There is a huge irony in this. America is allegedly the greatest assemblage of shoppers on the planet, and the rise of low-cost shopping meccas like Wal-Mart, its kindred big-box and specialty retailers, and now Amazon, is striking evidence of this societal competence in consumer choice. But with this tremendous resource for efficiency and cost-containment largely banished from the health care system, we end up with an uneven battle between the cost containment regulations issued by bureaucrats and third-party payors and the plunder of the cartels which dominate the delivery machinery.

The destruction of consumer choice and the shopping prowess of Americans in the health care delivery system was made in Washington—-not because people are not competent enough to choose among doctors, treatments, and vendors. Specifically, it started with the IRS’ WWII determination that employer health plans were not taxable income—a fraught policy decision that inherently created a bias towards tax-excludable insurance coverage versus after-tax out-of-pocket payments.

By the 1960s, employer health coverage was already creating an inflationary bias in the system, and a perceived inequity in terms of access to health care by the aged and poor who by definition weren’t part of the employer covered population. That resulted in LBJ’s landmark Medicare and Medicaid legislation, and before long a second prong of price-insensitive health care spending was off to the races.

The post-enactment explosion of costs for these programs is well-known, but the actual figures nevertheless powerfully reinforce the point. By the time these programs were up and running in 1970, combined Medicare and Medicaid costs (including state matching) amounted to $15 billion and 1% of GDP. Thirty years later the costs had escalated to $375 billion and 5% of GDP. Today they cost $1.2 trillion and with WIC and related child health programs, the total is $1.4 trillion. Finally, even conservative projections which embody far less than the worst case for Obamacare, show that government health spending will reach $2.4 trillion annually or 10% of GDP by 2022.

It goes without saying that the health care needs of the poor and elderly did not rise from 1% of GDP to a prospective 10% of GDP over the course of 50 years. What actually happened was that Washington created an enormous insurance pool for an uninsurable service, and then invited the medical professions to morph into the beltway’s greatest crony capitalist lobby.

The American Medical Association, for instance, fell on its sword in opposition to LBJ’s original legislation. Yet by 2010, it sold its soul in support of Obamacare in exchange for a more doc-friendly regime, the very thing which will cause the cost of Obamacare to balloon in the years ahead.


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  1. LetitCollapse
    LetitCollapse 11 September, 2014, 18:51

    I disagree with the premise of the article. ObamaCare didn’t really transfer the delivery care of medicine from the private sector to the government. ObamaCare just changed who pays for it all. The burden now is on the middle class taxpayer. He is forced to pay more for all the indigents who cannot afford medical care but who are now entitled to it.

    The government electeds pass laws that reward the big medical corporations for the bribes that they pay. That is why a tylenol capsule that you can buy at CVS for pennies costs you $75 in a hospital. That’s the reason you can buy American made pharmaceuticals in most any other country for half the price that you pay in an American pharmacy. Same with medical devices. You cannot order your pharmaceuticals from a Canadian pharmacy. It is against the law, even though the Canadian pharmacies sells the EXACT SAME American made products that you get from your local pharmacy.

    The medical companies and the pharmaceutical companies authored the ObamaCare laws. The politicians just accepted their bribes (campaign contributions) and signed off on the ACA law. That’s why Pelosi told you that she had to pass the law before we could find out what was in it! lol.

    Medical insurance companies and private sector medical corporations make out like bandits with ObamaCare. Don’t let anyone try to convince you differently. Costs won’t come down. In fact, they expect total medical cost to rise to 20% of GDP this year. lol.

    So ACA wasn’t just a government thing. It was a happy collusion between government and the big corporations. A huge windfall for the corporations. The middle class taxpayer is the one who gets screwed. Have you seen the medical industry stocks fall since ObamaCare was enacted? Of course not. They have done very well.

    Connect dots.

    Reply this comment
  2. Nancy
    Nancy 12 September, 2014, 09:04

    I agree with how LetItCollapse describes our healthcare system as:”It was a happy collusion between government and the big corporations.” And I believe that describes fascism.

    Reply this comment
    • LetitCollapse
      LetitCollapse 12 September, 2014, 09:35

      ‘Fascism’ is the merger of state and corporate powers. Draw your own conclusions.

      In this scenario painting the gov as the ‘bad guy’ and the private sector as the ‘good guy’ is way off the mark.

      The corporate powers wrote the ACA law. The bootlicking pols just signed off without reading it. lol.

      And the dictator makes changes here and there without even asking for permission. Just like he’s getting ready to bomb Syria (a sovereign nation) without permission. lol.

      Just like he’s getting ready to declare amnesty (legalizing illegals)for many millions of lawbreaking migrants who stole jobs from Americans and freeloaded on our system. lol.

      We truly do live in a lawless state for the protected class. The hallmark of a banana republic.

      You see, ObamaCare didn’t reduce costs, the primary objective of healthcare reform. Most productive citizens must now pay more for their ObamaCare plan and get less. More for less. The cost for an average policy rose 8%-9% this year. Just wait until next year when the full effects of ACA kicks in. lol.

      But the corporations didn’t lose a nickel. In fact, they profited handsomely, which stands to reason since their lobbyists wrote the law.

      They’ve turned us into a banana republic before your very eyes. And they did it without the paupers revolting. Mission accomplished.

      Reply this comment
  3. LetitCollapse
    LetitCollapse 12 September, 2014, 22:46

    Hey, did ya hear about former Republican Majority House leader Eric Cantor landing a gig with a Wall Street investment bank for a piddly compensation of $3.2M after getting his butt ousted from office?

    Can you say ‘revolving door between DC and Wall Street’? More evidence. They all protect one another. Launder $billions in drug proceeds? No problem. No indictment. No prosecution. No jail time. And if you happen to get ousted from office Wall Street put out the safety net to catch you. I wonder if Cantor will be working next door to Timmy Geithner??? 😀

    If Cantor was worth that much on Wall Street it makes one wonder why he hung on to that lowlife gig in DC that only paid $175,000, eh? Hmmmm? 😉

    So now are you starting to understand the Wall Street – ObamaCare connection?

    Reply this comment
  4. Queeg
    Queeg 13 September, 2014, 08:10

    Obamacare is the final building block of the Euro welfare model.

    Why would a waiter or someone “in continuous transition” care to improve himself when he just got a $1400.00 a month raise for family health care.

    This is insane.

    Reply this comment
  5. LetitCollapse
    LetitCollapse 13 September, 2014, 10:05

    “Obamacare is the final building block of the Euro welfare model.”

    I disagree. The corporations don’t run the healthcare system in the EU like they do over here. That’s the reason the average EU nation only spends about 12% of their GDP’s on healthcare while we spend 20%. And the quality of healthcare in the large majority of EU nations is better than what we get here. They live longer than we do, on average.

    ObamaCare didn’t transfer healthcare ops to the government. The corporations still control the medical system. Private docs and medical corporations still treat all the medicare and medicaid patients. The large majority of hospitals are still privately owned and operated.

    ObamaCare simply forced all the additional costs of treating indigents and those formerly blackballed by the big medical insurance companies on the middle class taxpayers, enforced by the IRS.

    The private corporations are still charging the same outrageous prices for medical care and making out like bandits. And those costs continue to rise. (20% of GDP now). By order of the government the all the costs got shifted to the working class. That’s what changed.

    Reply this comment
    • Donkey
      Donkey 15 September, 2014, 07:39

      Thanks for the truth about Obamacare LIC, the news media never gave an accurate story of who was going to pay for the true cost of Oblamy’s scam. 🙂

      Reply this comment
  6. Queeg
    Queeg 13 September, 2014, 13:34

    Lots of truth and crystal informative.

    Euro welfare is a tempting target for politicians…..give em more, for there never ever will be any decent work out there for them….and they vote!

    Reply this comment

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