Re: CPI Composition
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As I think you are stating ironically, health insurance is not extremely expensive. If you consider that 6% of CPI expenditures represents a much smaller percentage of total expenditures, and that for those who itemize expenses > 2% of gross income are deductible, health insurance is in reach of anyone who needs it and isnt getting it.
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I got to you too quick, but you bring up a good point. I'm having trouble understanding what you are saying because I don't think I'm understanding economics at the same level that you are. However you say that "health insurance is in reach of anyone who needs it and isn't getting it." Why then do people say they can't afford health insurance?
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If shes a med student I dont think she'll have trouble understanding that CPI represents changes in the cost of a market basket of expenditures most commonly consumed. Health care's weight is just the perecentage of the total expenditures.
As far as people saying they cant afford health insurance, I think the majority of that is political rhetoric, not what "people" are saying about their own situation. For those who do complain about it, I would attribute it to their priorities. Eg $3000 a year for comprehensive coverage to someone who believes they are healthy seems expensive compared to the latest 1080p HDTV, so they "can't afford" it.
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