50% of GDP:

As part of the debate over health care, several people have noted that in the U.S., at least 15.3% if GDP goes for health care (2004 figures). And if the share of GDP continues its historical upward trend, it will reach 19.5 percent of GDP by 2017.

But wait, there's more!

What about the financial sector of the economy? For the U.S., the financial sector - financial intermediation, real estate, renting, business activities - comprises 32% of GDP (2005 OECD figure).

Now some of the financial stuff is worthwhile, but plenty is not. Adding together the financial sector and the (projected) health care portion, you're looking at 50% of GDP already spoken for. What's left is spending on all other stuff: services, manufacturing, entertainment, travel, etc.

That doesn't sound like a recipe for a robust, globally-competitive economy.


posted by Quiddity at 8/29/2009 10:40:00 AM