Decline in Health Spending in the Economy

The health share in the economy has decreased in the year 2012 as stated by federal data released on Monday.

The decline, the largest of its kind in a decade has come after a slow growth in heath care spending. This phenomenon has puzzled the economists that whether the decline is merely short term or is part of a bigger change in the medical industry.

According to a Harvard Economist David Cutler, who also served as a health advisor in President Obama’s 2008 campaign said “There are two explanations, One is the recession was a big and drunken episode that has a very long hangover. The alternative view is that something big has actually changed.”

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