Healthcare Costs Soaring by Many Times Inflation Rate

span style=”font-size: small;”>The Kaiser Foundation tracks healthcare spending at more than 2,000 large and small employers each year. It found that, over the past year, the cost of healthcare insurance premiums increased by “only” 4%.

Those touting new healthcare regulation see this as a major victory. It shows that tough measures can work.

Hmmm.

Given that a 4% increase means cost shot higher by 235% the rate of inflation… and that in a short time it will be illegal NOT to buy healthcare insurance… AND the current increase is on top of a 9% increase from 2010-2011, does it really feel like a deal?

Seems like more of a scam…

Just because someone hits me less often than in the past doesn’t negate the fact that they’re hitting me.

And while we’re on the subject of a rising cost that is shoved down our throats, let’s not lose sight of the other side of this coin – how we all pay for it?

In the world of inflation, we are supposed to see our costs rise (we definitely have that), the value of our assets move higher (ugh, not so much) and the size of our paychecks and interest checks increase (actually moving lower).

To badly butcher the old Meatloaf song, “one out of three is terrible!”

If the only part of inflation that we get is higher costs, then that leads to one thing – a falling standard of living.

Welcome to America in the 2010s.

It doesn’t really matter who people vote for in the November elections. The U.S. is headed down the path of less.

Many of the reasons for this trend are written in stone…

We have to pay down the debts incurred in previous years. We have to pay for entitlements promised but not funded. We have to deal with the slowdown that was telegraphed years into the future by demographics.

But there is one reason that is not pre-destined, but chosen. That is the financial repression the Federal Reserve is forcing on seniors and all other savers. They’ve become more mafia than anything else.

The Fed, with Ben Bernanke as the godfather, is stealing from the till, slipping away with a percentage of all the money in the system.

Not only is this group artificially holding interest rates exceptionally low, which steals money from savers to favor borrowers, they are also printing more money as we go along, which just doubles down on the tactic of stealing from savers.

Our forecast for many years has been for deflation to take hold in the current economic climate, and that is exactly what has occurred in areas such as income and many assets such as homes.

The Fed continues to fight the trend with the only tools it has. Given that the Fed’s toolbox includes all things monetary, its plan of attack has to include tinkering with money.

The basic approach is to take from those who have it and move it to those who will spend it.

It is in this environment, with incomes falling, our savings accounts earning less and home prices in the deep freeze that the whole notion of a 4% increase in a large, necessary cost seems outrageous.

It is NOT a bargain as the mainstream media would have you believe.


Rodney

P.S. Harry will chat to Money host, Melissa Francis, on FOX Business tonight, at 5pm EST. Be sure to tune in.

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Categories: Inflation

About Author

Rodney Johnson works closely with Harry Dent to study how people spend their money as they go through predictable stages of life, how that spending drives our economy and how you can use this information to invest successfully in any market. Rodney began his career in financial services on Wall Street in the 1980s with Thomson McKinnon and then Prudential Securities. He started working on projects with Harry in the mid-1990s. He’s a regular guest on several radio programs such as America’s Wealth Management, Savvy Investor Radio, and has been featured on CNBC, Fox News and Fox Business’s “America’s Nightly Scorecard, where he discusses economic trends ranging from the price of oil to the direction of the U.S. economy. He holds degrees from Georgetown University and Southern Methodist University.