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Obama's Economic Case For Health Reform

This article was originally published in The Gray Sheet

Executive Summary

A report released June 2 by the White House's Council of Economic Advisers makes the case that a 1.5% annual health care spending growth rate cut would have a significant long-term positive impact on the domestic economy. Specifically, the president's advisers say in the report, "The Economic Case for Health Care Reform," that the reductions would increase the U.S. gross domestic product (GDP) by about 8% by 2030 compared to if the health care system remained on a constant course. The reforms would also reduce unemployment, the report says. The improvements would result because lower health care spending will free up resources to produce other goods and will also reduce the federal deficit.
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