Health-Spending Growth Actually Slowing

Last week’s data highlighted the growing gap between the health of businesses and consumers that is starting to contribute to a widening gap in the performance of consumer and business-driven stocks, as well.

Center-left Washington is arguing with ever-greater ferocity that center-right Washington is mistakenly obsessed with deficit reduction. Part of the argument is familiar: 1. Low Treasury interest rates show markets unconcerned about the $16 trillion national debt. 2. As the economy continues to heal, annual deficits will shrink substantially.

People don't bring this up very much, but one of the best ways to control costs in health care -- or any private sector, really -- is to have a huge recession. Robert Pear explains:

A number of folks in recent weeks have question or criticized my views, both here at OTE and on TV, regarding endorsing spending cuts, including some targeted at the social insurance programs Medicare and Social Security.  So let me expand a bit on those views and what I believe is a balanced take on these highly charged issues right now.

Once again, the consensus has been consigned to the dustbin. We knew that the growth rate in last quarter of 2010 would be harder than usual to get right: as it turned out, none of the leading City economists even came close. The lowest forecast was growth of 0.2% - instead the first estimate is for a contraction of 0.5%.

Obamacare is having some impact, but the weak economy is the biggest driver of America's slowing growth in health care spending.