Our elected leaders are currently working up a head of steam to reform healthcare. Good luck with that. The mere fact that they vaguely call the effort "reform" tells you it’s going to be a very steep hill to climb. What nobody wants to say out loud is that the big problem with healthcare is that we spend so much on it, and we can’t spend meaningfully less on it without getting less of it. Like I said, good luck.
In the US, we spend about 12.5% of GDP on healthcare, a higher percentage than any other developed country. However, I think we can all agree we get 
rather a lot for our money. In contrast, we spend 2.6% of GDP on higher education, also the highest developed world percentage. And of course, we get something for our money here too. I for one am glad our doctors went to medical school. But dollar for dollar I think we’re getting a lot more value from healthcare.
Why do we spend so much on higher education? And why isn’t it considered a crisis worthy of reform? Part of the problem is a cultural attitude that higher education is a kind of higher calling. Attending college is a good thing in an abstract and noble way that doesn’t lend itself to cost benefit analysis. Asking if it is a wise investment in dollar terms just seems tawdry.
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It’s not turning car companies into government agencies that bothers me so much as turning the government into a car company. And not a car manufacturer, you understand. I mean a car dealer. The kind with the big lot on the edge of town covered in balloons and promoted incessantly by radio 
commercials with catchy jingles.
This trend kicked off in March when the president announced new car warranties backed by the government. That was on top of an assortment of other incentives then in place to get folks to come on down and kick the tires, such as a temporary deduction for state sales taxes and tax credits (a. k. a. rebates) for hybrids.
The latest gimmick under consideration by our national dealership is a version of the old "we’ll pay you $1000 for any trade" scheme. Working its way through Congress is a cash-for-clunkers promotion. Turn in any drivable car with mileage at least 10 MPG worse than what you are buying to replace it and Crazy Uncle Sam will pay you $4500. Hurry hurry hurry. At these prices these deals just won’t last.
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The 208th Carnival of Personal Finance is up at Money Under 30. The host did an excellent job, except that he mentioned witnessing the world’s largest lobster roll, at 60 feet long, and named this week’s edition in its honor, but did not provide a photo.
My oh-so-clever post from last week on any printed number being believable is there, way down at the bottom. Placement was not an editorial choice, it’s what I get for writing something that is best categorized as “other”.
There are a bunch of posts in the carnival worth the read. A post on the fact that Thomas Jefferson was in in debt his whole life is worth it because, apparently, this is not common knowledge. I blame public schools.
There’s a post making what I would think is a non-controversial point that you can save money by buying your dog cheaper food. It’s worth reading because the one comment it got argued it was wrong. Also, there’s a picture of a puppy.
Tough Money Love had an appropriately cynical and mildly hostile post on the government bailout and takeover of GM. I liked that. But I was disappointed by a post entitled Making love with money is my favorite kind of romance. I was hoping for something more edgy, possibly with tips on using Craigslist.
Congress is about to pass “sweeping credit card legislation.” I don’t think it’s all that sweeping, and although overall I don’t particularly object to it, there are aspects of it that bother me.
Reassuringly for us curmudgeons, the bill is hardly revolutionary, largely a collection of modestly worthwhile reforms and regulations. There are rules about how interest rates can be raised and late fees charged. Most people will not notice any effects, and even those that do will probably forget about it in a year or two.
However, there is one aspect of the would-be law that is significant both in its impact on a small slice of the public and as a sign of the times. The just-passed Senate version of the bill outlaws credit cards issued to those under 21. The House version set the minimum age at 18. That’s a big difference in my book.
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A little over two months ago I wrote a long and ponderous post on the administration’s scheme to help homeowners in trouble and cure the housing crisis. I wasn’t very nice about it. I cruelly suggested that it might not help the 1 in 9 homeowners that the Treasury suggested might be helped. I feel bad about that. I even implied that the strong moral leadership provided by the Treasury’s guidelines would not be enough, that actual legislation would be required.
You must understand, this was in early March, back when things were really grim. Unemployment was rising and house prices seemed to be falling every month. I let my despair overcome my natural American optimism about all the good that government can do if we all chant “Yes, we can!”
Now that May has brought warmer weather and a buoyant stock market, let’s revisit the administration’s housing effort with all the optimism and cheerfulness that it deserves. So two months into it, how is it going? Great. Well, pretty good. Not bad. To be honest, fair. A little less than expected, but it’s still early days. Okay, really crappy, but we’re working on it.
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rather a lot for our money. In contrast, we spend 2.6% of GDP on higher education, also the highest developed world percentage. And of course, we get something for our money here too. I for one am glad our doctors went to medical school. But dollar for dollar I think we’re getting a lot more value from healthcare.
College, Government, The Big Picture | Frank Curmudgeon | 
June 17, 2009 1:00 pm | 
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