United States How does the United States pay for things? What are the technical details?
The United States doesn't have a 'bank account' so how does this work exactly. All checks from the United States government are from the Department of the Treasury, correct? And when that check is deposited in a bank, then how exactly does the bank increase that person's account without debiting the United States government account (of which there is none)? Basically I'd like to orient myself to the 21st century method of payments between the government and its people.
They issue bonds and t-bills, Chinese and Japanese and Taiwanese buy them
Analyzing wealth in the USA I can't help saying a few words about the economic development of the country, because the prosperity of the United States fully depends on it. The U.S. economy is based on free enterprise system. The government places regulations on economic practices. The U.S. economy arose due to the stubborn labor of American people, the appearance of market relations, great consumers demand. The country's productivity has grown during the last 70 years.
Today the nation's gross domestic product (GDP) is about 13,049 trillion dollars and it continues to grow. Federal budget per capita is 5,740$ with public debt 18,956$ and personal income per capita 22,000$. The economic situation during the year 2005 is considered to be strong in general, but there is some fear because of the Iraq War, high oil prices and so on.
But from time to time the U.S. economy faces the problems, such as recession, depression and inflation. And one of the points of American instability is the financing of the Healthcare system of the country.
Healthcare in the U.S.A.
American healthcare is one of the largest branches of industry in the country. The expenses on health protection grow incredibly with the increasing rate. In 1994 Americans spent 800 milliards on healthcare, but this increasing numbers occurred mainly because of the governmental programs. To my mind the country threw its money to the winds, because thousands and even millions of people were left without a proper treatment and all of them suffered from a lack of necessary healthcare, as the country did not guarantee publicly-funded medicine for potential patients.
Nearly 20 per cents of Gross domestic product (GDP) of the United States are spent on Healthcare program. The expenses overtake the growing of national economy and by the year 2015 they will form more than 20 per cents. For comparison I should mention that in 2004 only 16 per cents of GDP were spent for these purposes. And according to the research work the experts got a result that the national expenses will increase on 7,2% during the next 10 years. By the prognosis of experts, the United States will spend nearly 446 milliards on medical provision, while in 2004 it was only 188 milliards.
The government meets the expenses with the help of two main state programs: "Medicaid" and "Medicare". According to the program "Medicare" life and medical insurance is carried out for all Americans, who are older than 65 years, who has serious health disorders, for example, problems with kidneys, diseases of blood, gastro-intestinal tract and nervous system. The program "Medicaid" provides services and insurance for medically needy Americans, mainly women (during pregnancy, not after birth), children from poor large families, for those who want to live, but can not afford to pay for treatment. Besides this program pays for staying at the houses for aged people.
Unfortunately nowadays costs on payment for doctors' service rose to 22%, nearly 16% - for medicament treatment and so on.
As a result people have a lot of objections and are subjected to agitation. Many of them came to understanding that healthcare in their country is not effective at all.
Here are the examples. The United States have about the most terrible infant mortality compared to other highly developed countries, while spending of finance for healthcare is the highest in the world.
The U.S. contains less than 5 per cent of the world's population, but spends 42 per cents of world's healthcare expenses. But at the same time the American nation is not the healthiest one among others. A lot of people still wait for the planned operations for several months and even years, people can't visit simple specialist (internist, dermatologist, cardiologist, oculist, etc.) without a record and insurance policy. It seems that it is a real absurd, because all of us have a right for life, treatment and medical support according to the Constitution.
No doubt insurance is very important and necessary, but not in America, where people pay huge extreme, all in all incredible fees, taxes, money for insurance to the government and never get the proper medical help and treatment. The goal of all insurance companies is to make people believe that the law guarantees them that they will get the highest quality and effective health care. Most Americans receive health insurance through the special benefits programs, provided by their employers. The employers pay 3,3% tax plus 1,45% tax for Medicare. But there is the other side of a medal. Some people do not earn enough to cover all their house and public bills and 75% of them have a constant job, but insurance is too expensive for them. So the country shows us a principle, that insurance and especially in medical field is a privilege for wealthy people. Nearly 43 million Americans exist without insurance policy and approximately 42 millions are underinsured. But wait a minute. I speak about the money that people pay to the government voluntarily and where are the money (nearly 20 per cents of Gross domestic product) that the country spends on Healthcare?
The explanation is funny... One third of the budget money is focused not on people's health, but on plastic surgery, cosmetology and other luxury. The remaining portion of money are directed and used in scientific research work. Of course this money are used with good and noble purpose, but the history shows that several dozens and even hundreds of years should pass before something incredible new to discovered. That is why we are to believe that once American financing will give fruit and this work will justify all the inconceivable investments.
Conclusion
But now it is obvious that Healthcare in the United States is a real burden on economy. Therefore the government should properly use the budget money and develop a program that will include different ways of healthcare: inpatient, outpatient, emergency, long term, eye care, prescription of drugs, mental health services, dentistry and so on. Patients should have the choice where to be treated: at the hospital, at a clinic or stay at home, then what doctor to choose, what medicines to use in this or that case. All in all a significant changes, reconstruction and restructuring are needed to be done in Healthcare and economy. Before it is not done the country's economy can fall down, because of money that are burned and thrown to the winds. So the state budget should be distributed in a smart way. And only under this condition and circumstances we can expect the nation to be healthier and wealthier simultaneously. And during the next couple of years the tremendous growth of American economy and wealth will only continue to double. Customized written term papers Custom Essay Buy custom essays
