Healthcare is the illness of the federal buget
Look at the graph above provided by CBBP. Actually, the politics did a quite well job on cutting the spending in the US. If one looks more closely in the report, even the wardefense budget decreased in percent of GDP. Great! If there were not these lousy costs for social security and medicare. Why are these so high?
Demographics maybe for sure a factor, but lets have a look more closely at the costs for medical treatment in the US.
Follow the red dots and you can see immediately how healthcare costs in the US are multiple times higher than the rest of the world and even way more expensive than Switzerland! Now remember, that not only Switzerland has a hugely expensive health care system, which can only work for such a small country. Moreover, the comparative price level is nearly double than in the US according to the OECD. Again, the health care prices in the US are even higher than the ones in Switzerland, a country where prices are generally double than in the US. Normally they should be minimum half or even less, but as you can see they are multiple times more expensive. No wonder, the US spends such a huge share of GDP on health care, but nonetheless a huge part of the population is uninsured.
