Health_Reform

The United States is the only country in the developed world, except for South Africa, that does not provide health care for all of its citizens. Instead we have a confusing private insurance coverage based primary on employment, along with public insurance coverage for elderly, the military, veterans, and for the poor and disabled. Such a “non-system” creates serious gaps in coverage. Health care costs are consuming a growing federal and state government budgets. The U.S. spends over 2.2 trillion dollars on health care each year- almost 8,000 dollars per person. This number indicates that approximately 16 percent of the total U.S. economy. And professor Kanthy Grove said that if U.S. government do not act soon, by 2017, 20 percent of the U.S. economics- more than 4 trillion dollars- will be spent on health care. But we cannot accept tens of millions Americans lack health care coverage. If there is no appropriate health care and there are many unhealthy work forces, they will lead to unhealthy economy. And this leads to no economic growth which shift short run aggregate supply curve to left and decreasing in consumption so aggregate demand curve shifts to left. These cause recessionary gap and deflation. So now president Obama is trying to reform health care. Two of these reforms are Increasing Health Care Coverage for Children which are reauthorization of the children’s Health Insurance Problem and Develop on Effective Medical Interventions which is to help physicians get the information they need to provide high quality care for patients. If these reform success, these cause population growth. Because of increasing in productivity, in the capital goods and consumer goods model, institutional production possibility curve and physical production possibility curve to right. And population growth and healthy economic increase consumption, this shifts aggregate demand curve to right. These means that there is economic growth. In Price level and Quantity of real out put model, Long Run Aggregate Supply curve and Short Run Supply curve shifts to right. Because of improving health care system, people can work harder and can more concentrate on their jobs so productivity increase. And also improving medical system, Americans life expectancy will rise and this stimulate consumption. This shifts Aggregate Demand curve right.