From AlterNet:
Two Trillion Spent on Healthcare Each Year: A Sick Way to Prop Up an Ailing EconomyBy Joshua Holland, AlterNet. Posted July 28, 2007.
Between 2001 and 2006, the healthcare sector added 1.7 million jobs while the rest of the economy added none. So how well is the economy really doing? For the first four years after the dot-com bust in 2001, a weak economy in most sectors was masked by an explosion in real estate sales, rocketing home values and a surge of consumer spending as people taking advantage of super-low interest rates and easy credit grabbed chunks of equity out of their newly high-priced digs and went shopping.
In the summer of 2005, the New York Times reported that the real estate biz -- "everything from land surveyors to general contractors to loan officers" -- had added 700,000 jobs to the American economy during the previous four years, while the rest of the work force had lost 400,000 jobs over the same period. Technically the economy was in "recovery," when in fact most of it remained soft.
A few economists sounded a warning about having all our eggs in one economic basket. People like Yale's Robert Shiller and Dean Baker at the Center for Economic Policy and Research pointed out that home values weren't syncing up with the fundamentals of the market, and that we were headed for an "adjustment" -- either a real estate crash leading to a recession or, in the best case scenario, a "soft landing."
But while there were some voices of caution, other economists told us that everything was going gangbusters. This was the New Economy in action: American manufacturing may have been gutted during the previous few decades, but the service sector is where more "value" is added anyway -- where the big profits are -- and Americans would be just fine selling each other houses, insurance and the occasional cheeseburger until the Next Big Thing came along.
It was a hot debate, but something else was going on at the same time that got less attention: There was the emergence of what could be called the healthcare economy. As Michael Mandel wrote in Businessweek last September, "Without
, the nation's labor market would be in a deep coma." Between 2001 and 2006, 1.7 million new jobs were added in the healthcare sector. Meanwhile, the rest of the private sector added exactly zero new jobs (net) during that period. .......(more)
The complete piece is at: http://www.alternet.org/workplace/58099/