Medical Care as Percent of Core PCE

4/30/09 Is this higher spending in US medical care as a percent of Core PCE sustainable? As our population ages (leading edge of "baby boomers" turn 62 years old this year) won't there be higher spending in medical care? Health Care prices are controlled by the American Medical Association (the medical doctor's lobby) via Medicare and Medicaid so prices are unlikely to come down. What effect will this have on other descretionary spending?

GDP and Medical Care

4/29/09 Year-over-year change in medical care consumption as percent of personal consumption continues to spike higher.

4/14/09 Real disposable income and auto sales are still moving very predictable pattern. Looking at this chart one has to wonder how GM would sell a $40,000.00 electric car.

4/3/09 Y/Y increase in Social Security Retirement and Cost of Living Adjustments. Notice recent spike y/y retirement number and higher normal (5.8% increase) COLA. This spike could also reflect: 1) leading edge of "baby boommers" turning 62 years old or 2) a falling equity market.