Tyler Cowen, Columnist

Spending a Lot on Health Care Is the American Way

It's a nation of consumers: Big houses, the latest gadgets, huge hospital bills.

Good health is priceless.

Photographer: Joe Raedle/Getty Images
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The U.S. has some of the most expensive medicine in the world, with health-care spending now almost 18 percent of gross domestic product. But why? And might we hope to get this spending down? Unfortunately, expensive health care is embedded in the American way of life -- more specifically, the American desire to live it up with high consumption.

As outlined by the blog Random Critical Analysis, U.S. health-care expenditures go well beyond what the U.S.’s relatively high per capita GDP might lead us to expect. But viewed through the lens of consumption behavior, American health-care spending is typical of this nation’s habits and mores. Relative to GDP, Americans consume a lot more than Europeans, and our health-care spending is another example of that tendency.