| Lesson 25: The Old Must Die |
You must die. You know that. It is natural for the elderly to fear death, and natural for their beloved to
mourn them. However, it is insane to think that the elderly must not die. After all, the only alternative to
dying old is to die young. But insane or not, that is the idea that has driven the bulk of health care spending
for 40 years. It has also become an unspoken policy for much of the health care industry that profits from
that spending. The leading cause of death in the U.S. continues to be Old Age, but Old Age doesn't get any
credit anymore. Doctors have quietly banned it as an acceptable diagnosis.
This lunacy, like so many others, was caused by government. It happened in the usual way: a government
program removed shopping from consuming. (See Lesson 11). Shopping is the process of conducting
subconscious cost/benefit judgements. It is the thinking part of consuming. Without it, we consume like
animals. Since Medicare was introduced, Americans have engaged in a mindless pursuit of longevity with
staggering expense and awful return. The average health care expenditure in 1980 was $1,102 per person;
in 2005 it was $6,649. * Much of that was through Medicare, where annual payments (not costs) rose to
almost $8,000 per recipient.** For all that, in the same period, the average life expectancy of a senior
citizen went up only 2.3 years.***
If you think that sounds fine, it's probably because you have lost the perspective that comes with paying for
things directly. Think of it this way: Over a life-time, the average American manages to make enough to
buy a home. But you earn almost enough to buy two. We spend $25,000 in health care just in the last year
of life. All that money doesn't come from the rich. We could not spend that much if we took every dime
from every CEO. It comes from raising your cost of living in a thousand little ways (see Lesson 2). If you
want that kind of deal, great. I'd rather buy a boat and die at home. We have different priorities.
It has been a sight to see so many conservative celebrities recently championing Medicare and
championing immortality. There are two good reasons that they do:
1. The current seniors have no options. They have paid their boat without a choice. An abrupt
redistribution of funds, as currently being proposed by the Democrats, would kill senior citizens. It took us
45 years to get in this situation. It will take decades to get out properly.
2. The alternative is worse. Instead of returning money to us so that we may shop, Democrats are instead
planning to do the shopping for us. They will decide our priorities by committee and bureau. They will
calculate our cost/benefit analyses using tables, equations and regulations. They'll do it even in matters of
life and death.
References:
* Table 124, Health, United States, 2008
** 2006 Medicare Trustees Report
*** Table 26, Health, United States, 2008
mourn them. However, it is insane to think that the elderly must not die. After all, the only alternative to
dying old is to die young. But insane or not, that is the idea that has driven the bulk of health care spending
for 40 years. It has also become an unspoken policy for much of the health care industry that profits from
that spending. The leading cause of death in the U.S. continues to be Old Age, but Old Age doesn't get any
credit anymore. Doctors have quietly banned it as an acceptable diagnosis.
This lunacy, like so many others, was caused by government. It happened in the usual way: a government
program removed shopping from consuming. (See Lesson 11). Shopping is the process of conducting
subconscious cost/benefit judgements. It is the thinking part of consuming. Without it, we consume like
animals. Since Medicare was introduced, Americans have engaged in a mindless pursuit of longevity with
staggering expense and awful return. The average health care expenditure in 1980 was $1,102 per person;
in 2005 it was $6,649. * Much of that was through Medicare, where annual payments (not costs) rose to
almost $8,000 per recipient.** For all that, in the same period, the average life expectancy of a senior
citizen went up only 2.3 years.***
If you think that sounds fine, it's probably because you have lost the perspective that comes with paying for
things directly. Think of it this way: Over a life-time, the average American manages to make enough to
buy a home. But you earn almost enough to buy two. We spend $25,000 in health care just in the last year
of life. All that money doesn't come from the rich. We could not spend that much if we took every dime
from every CEO. It comes from raising your cost of living in a thousand little ways (see Lesson 2). If you
want that kind of deal, great. I'd rather buy a boat and die at home. We have different priorities.
It has been a sight to see so many conservative celebrities recently championing Medicare and
championing immortality. There are two good reasons that they do:
1. The current seniors have no options. They have paid their boat without a choice. An abrupt
redistribution of funds, as currently being proposed by the Democrats, would kill senior citizens. It took us
45 years to get in this situation. It will take decades to get out properly.
2. The alternative is worse. Instead of returning money to us so that we may shop, Democrats are instead
planning to do the shopping for us. They will decide our priorities by committee and bureau. They will
calculate our cost/benefit analyses using tables, equations and regulations. They'll do it even in matters of
life and death.
References:
* Table 124, Health, United States, 2008
** 2006 Medicare Trustees Report
*** Table 26, Health, United States, 2008