• Dueling charts

    One last attempt.  Tyler Cowen asks specifically what happened in 1980 in his chart.  So I went back and remade it for the US alone.  I don’t see that jump in 1980.  My data was from the OECD today.  I can’t speak for that other chart.

    This might be much ado about nothing.

    • Those two charts look pretty close to identical to me…..

    • Aaron- Link to BLS chart on increases in health care spending. We did have significantly increased separation between health care cost increases and the CPI for three time periods in this chart. Since about 1952, health care has maintained a slight edge over general spending, but it is larger in those three eras. 1980 to the early 90s is one of those periods. This does not account for quantities purchased, so we still need that piece of data.



    • The question is why the US pulled away from the pack, starting around 1980. From 1960-1980 the US was near the front of the pack in health expenditures, but it was clearly part of the pack. During the 1980s the US pulled ahead, separating from the pack and opening a large gap in health expenditures between it and every other country.