[ExI] Why is “cost of living” such a big problem?

[John Clark]

On Mon, Nov 2, 2026 at 1:15 PM <spike at rainier66.com> wrote:


*>>…I'd like to know why more politicians are not asking how the average
>> technologically advanced nation in Europe or Asia spends per capita about a
>> third  what the US does, and yet they manage to produce results that are
>> superior to that of the US….. John K Clark*
>
>
>
> *> John that disparity goes away if you disregard gang wars, drug abuse
> deaths and suicides.  Those categories cause fatalities among the young,
> which have a high impact on statistics.  None of those categories should be
> averaged into life expectancy or efficacy of the medical system.*
>

*ME*: Somebody told me that the reason the USA spends so much more on
healthcare than other rich nations in Europe and Asia and yet the life
expectancy is significantly lower is because of gang wars, drug abuse
deaths and suicides in the USA; is that true?

*GPT: No, gang violence, drug overdoses, and suicides are not a convincing
explanation for America's enormous spending premium. The much stronger
explanation is the higher cost of providing healthcare, particularly
hospital services, physician services, prescription drugs, and
administration. One particularly revealing statistic: In 2024, American
life expectancy reached a record 79 years, but remained 3.7 years below the
average of comparable wealthy countries. *

*Annual healthcare spending per person in the United States is $13,432.*
*Average of 11 comparable wealthy countries is $7,393,  82% more per
person. Purchasing-power-adjusted figures, based on the study's 2023
comparison.*

*  What explains this difference?*

*The research points to several factors:*

   -

   *Higher prices: American hospitals, doctors, and other healthcare
   providers generally charge considerably more.*
   -

   *Prescription drugs: Many medications cost substantially more in the
   United States.*
   -

   *Administrative costs: The fragmented insurance system creates
   substantial billing, paperwork, and administrative expenses.*
   -

   *Insurance and access: Millions of Americans remain uninsured or face
   financial barriers to obtaining care.*

*Perhaps most interestingly, Americans generally receive fewer healthcare
services, such as doctor visits and hospital procedures, than people in
comparable countries. **In other words, we're paying more even though we're
not necessarily receiving more medical care.*
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