Is there anyone who does not believe that we are in a full-blown healthcare crisis?
Identifying our Healthcare Crisis
The first step to resolving a problem is identifying the problem and its components. What do we typically hear is the problem?
I. We need more money. On this issue I agree with Trudeau; money for what? What will it be used for and what will throwing more money at healthcare do?
I am going to stay on this theme for a bit. More money? Let’s take it at face value that the system is sorely underfunded. But time to move on to the next question.
Where Will the Money Come From
We cannot just go and pick money off the tree. The tree was stripped some time ago and we have all loved the handouts, the largess, and the dump trucks with the government shoveling money out as fast as they could. We could have stopped this by working collectively but we have all been at the trough.
No sense bemoaning the fact that we are effectively bankrupt. Our debt is in the Trillions and just the interest alone per year is presently at about $69 billion. That is a lot of money out the door to pay for our borrowing. Money that cannot go to anything else – education, housing, addressing poverty and food insecurity, energy poverty, and now healthcare.
With $69 billion we could build at least 15 hospitals per year and staff them. But we can’t because we have already spent the money and racked up the debt.
Back to my question, “Where will the money come from?” Trudeau recently “expressed confidence that Canada can afford to boost healthcare funding.”
I am sorry, I do not believe Trudeau. Every penny that goes into new healthcare funding will be borrowed money. When does borrowing become too much? When does it become the tipping point to financial disaster for our population, for our country, for our grandchildren and their children?
I read that the provinces are looking for $28 billion per year of new funding. Financing that over 30 years @ 4% will cost us $295 Billion. Add $28 Billion per year for the funding and that adds $840 Billion. Total, $1,135 Trillion
Can someone explain to this old mind how we are going to pay for this?
How are We Going to Pay?
How are we going to pay? Who knows. Most do not seem to be worried about increasing the debt. Or possibly, our politicians do not want us to think about this until such time as they are out to pasture, romping on a warm sandy beach in the Bahamas.
$1,135 Trillion spread over 30 years equals an annual debt of $41.2 Billion. Remember, our present interest on our debt is about $69 Billion. We are talking about almost doubling the cost.
How are we going to pay, there are a few options:
I. In the “old days,” it was resource extraction that paid for much of what we wanted. I am not putting any value judgment on the decisions not to build pipelines to get gas and oil to markets, protecting 30% of our land base, timber harvesting, and…. I am only stating a fact that in the past, it was the conversion of resources that paid for much of this stuff.
II. Government can continue to print more money. Historically, when countries have simply printed money it leads to periods of rising prices. Often, this means everyday goods become unaffordable for ordinary citizens as the wages they earn quickly become worthless. Between October 2022 and November 2022, the federal government increased the money in circulation by 3.4%, for an annualized increase of 40.8%.
Does anyone have any questions about why living costs have gone through the roof? And the thought is to add another $41.2 Billion to all of this.
III. Increase taxes. The carbon tax is just one example and there will be much more coming.
2. We Need More Hospital Space
I promise. The last item. Everyone is focusing on more doctors, nurses, etc. There is no argument from this end that those are desperately needed. But a visit to a hospital emergency should provide a good example that we need more space. More emergency beds, more beds, more MRIs, more everything. What is the plan for this?
Think of it this way. A bus has 14 seats and there are 20 people who want to travel. Easy to think of being 6 seats short. People get squished into seats, they stand in the aisleways or wait for the next bus.
I do not have any answer for this, hoping that someone upstairs is looking after this.
Conclusion
Healthcare services and spending are hugely political, and the costs could strap us fast. This article is not about stopping healthcare expenditures, but mu attempt to discuss all options for today and for the future.
‘Thanks for getting this far. Our best wishes to all.
