As I noted last time, when looking at longevity, there is a very high correlation between a country's healthcare (or medical) spending and their average longevity (see graph below). The variation around that strong trend reflects relative weakness or strength. The overachieving group of countries in terms of longevity for their respective healthcare spending include poorer ones like Bangladesh, Vietnam, Jamaica and Cuba, as well as richer ones like South Korea, Singapore, Japan and Spain. On the other side, lower- and moderate-spending countries like Mongolia, Indonesia, Kazakhstan, and Russia do poorly on relative longevity, even compared to their lower spending levels, as do higher-spending countries like Kuwait, Saudi Arabia and the U.S., the latter of which is the largest healthcare spender in the world by a large margin (all these spending figures are per capita, and after adjusting for Purchasing Power Parity (PPP), or countries' respective cost of living).
Following up on my two previous discussions about medical and drug industry corruption, this time I would like to quantify the impact of the medical industry's corruption and enormous misallocation of resources has had on the healthcare and financial health of Americans and taxpayers.
David A. Pace, CFA
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