Home About Archives RSS Feed

The Independent Investor: The Culling of America

By Bill Schmick
iBerkshires columnist
As the death toll attributed to the coronavirus breached 100,000 in the Unites States this week, among the hardest hit Americans are those in the elderly population. The numbers simply illustrate what we all know. Eighty percent of the known fatalities were at least 65 years old. As such, the virus appears to be very good at selective slaughter.
 
As one of those who are most susceptible to dying from this virus, I have done a lot of soul searching over our future.  Today, I will begin to share some of these thoughts. Aside from the human loss, for example, what potential impact will this pandemic have on health care costs in the future?
 
Today, according to the most recent statistics, firms and individuals spend between 10-15 percent of Gross Domestic Product on health care. While the elderly account for about 16 percent of the population, they represent over 35 percent of total health-care costs. Most of these people are oldsters like me. Statistically, they tend to be older and white, with 40 percent of those expenses accounted for by inpatient stays.
 
Part of the reason for this trend happens to be the large segment of the population that is now represented by Baby Boomers. One can assume that, as they age, their medical costs are going to escalate and grow to an increasing portion of the country's health care costs. That seems to be a no brainer.
 
However, one wonders how the ongoing pandemic will alter that equation. For example, if COVID-19 is here to stay (in one form or another), and continue to prey on the elderly, will the nation's health care costs go up or down? One's first thought would be up, but that may not be true. The coronavirus is an efficient killer. Victims either recover, or die fairly soon. There does not seem to be many cases where the victims linger on.
 
Why is this important?  Because medical spending in the last year of life accounts for 16.8 percent of total costs for those over 65 years old. Just think of it — machines, specialists, MRIs, chemo, radiation, surgeries — the list goes on and on. It is even worse for those that make it over age 70. They can expect to see health care costs double from the ages of 70 to 90. Will death by virus alter that spending outcome? I think so.
 
I realize that's a pretty gruesome argument but one that is nonetheless realistic. I wonder if nature, in the form of this pandemic, is taking a hand in culling our human herd, and, if so, how does one avoid the slaughterhouse?
 
We know that those suffering from low immune systems, diabetes, cancer, and other ailments are highly susceptible to dying from this virus. In fact, the sicker you already are, the higher your risk. The silver lining in this crisis is obvious.
 
If we Baby Boomers ever needed a motivation to change our unhealthy ways, we have it now. How many of us fail even to do the most rudimentary exercises? We eat all the wrong things, and as a result, we number among the highest of all nations in obesity.  In this country, fully 85 percent of us will die from chronic diseases, which could easily be avoided through exercise and diet. We know all of this and yet choose to ignore it.
 
Could this virus trigger a change in our collective psyche in regard to our health? Will exercising at home, wearing masks, eating healthier, and shunning fast food by necessity catch on? If elderly Americans start to perceive a life style change as a result of COVID-19, then just maybe there will be some good outcomes to this pandemic. What do you think?
 

Bill Schmick is now the 'Retired Investor.' After working in the financial services business for more than 40 years, Bill is paring back and focusing exclusively on writing about the financial markets, the needs of retired investors like himself, and how to make your last 30 years of your life your absolute best. You can reach him at billiams1948@gmail.com or leave a message at 413-347-2401.

 

2 Comments
     

Support Local News

We show up at hurricanes, budget meetings, high school games, accidents, fires and community events. We show up at celebrations and tragedies and everything in between. We show up so our readers can learn about pivotal events that affect their communities and their lives.

How important is local news to you? You can support independent, unbiased journalism and help iBerkshires grow for as a little as the cost of a cup of coffee a week.

News Headlines
Pittsfield Schools Extend Remote Learning as COVID Cases Rise
Pittsfield Sets Virtual Tree Lighting for 2020
No Baystate Winter Games Figure Skating in Williamstown this Year
Adams Hosting Holiday Home Decorating Contest
Questions Linger in Wake of Williamstown Cannabis Panel Discussion
Mill Town Begins Construction on 36 New Tyler Street Residences
District Attorney Launches 'High-Risk' Team to Address Domestic Violence
Great Barrington Police Get Traffic Enforcement Grant
Storm System Could Bring Region's First Nor'easter of Season
Santa Will Call Pittsfield Children This Holiday Season
 
 


Categories:
@theMarket (352)
Independent Investor (450)
Retired Investor (23)
Archives:
December 2020 (2)
December 2019 (7)
November 2020 (8)
October 2020 (7)
September 2020 (6)
August 2020 (6)
July 2020 (10)
June 2020 (7)
May 2020 (9)
April 2020 (9)
March 2020 (5)
February 2020 (7)
January 2020 (10)
Tags:
Markets Rally Currency Metals Bailout Europe Greece Fiscal Cliff Banks Stock Market Economy Japan Deficit Euro Stimulus Debt Congress Election Pullback Debt Ceiling Recession Federal Reserve Taxes Interest Rates Jobs Oil Wall Street Selloff Europe Housing Retirement Stocks Energy Crisis Commodities
Popular Entries:
The Independent Investor: Don't Fight the Fed
@theMarket: QE II Supports the Markets
The Independent Investor: Understanding the Foreclosure Scandal
The Independent Investor: Does Cash Mean Currencies?
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: How Will Wall Street II Play on Main Street?
The Independent Investor: Why Are Interest Rates Rising?
The Independent Investor: Will the Municipal Bond Massacre Continue?
Recent Entries:
@theMarket: Markets Bet on Stimulus Sweepstakes
The Retired Investor: Bitcoin Is Back
@theMarket: Market Cyclicals Take the Lead
The Retired Investor: Pandemic Has Been Good to Pet Industry
@theMarket: Markets Are in a Tug of War
The Retired Investor: The Rise of RCEP
@theMarket: Vaccine Hopes Send Stocks Higher
The Retired Investor: Small-Town America Is in Vogue
@theMarket: Markets Enjoy a 'Biden Bounce'
The Retired Investor: Polling Business Takes a Body Blow