So here are the facts as it stands:
- Health care spending is the fastest growing part of the provincial expenditures on a per-capita real basis. At current rates, health care will eat up over 50% of government expenditures if the status quo is maintained.
- With an aging population, and the baby-boomers starting to retire, you'll have additional demands for health care resources. These people will be retired and will not be contributing the much less in taxes as they're not working. So you're looking at lower revenues and increased expenditures going down the road.
- Since this is a government run system, it automatically makes it a political system. They baby-boomers want all the bells and whistles (costs be dammed), and will not tolerate tax increases to pay for it. They will be become a large voting bloc that politicians ignore at their peril.
- We haven't mentioned that since it is government run, it is inherently inefficient, and featherbedding for self serving unions and health care bureaucrats takes precedence over patients. This accelerates the problems above.
- Start cutting all other expenditures. Education? Kids don't vote and there are more retirees than parents with school age children. Won't get much love from the teacher's unions, but the retirees are more powerful by this point.
- Ration as much health care as possible. But then there is a tipping point when the voters revolt over this.
- Raise taxes. Retirees on fixed incomes are really ornery over taxes, and it has to be done where it soaks everyone but retirees. So business taxes and income surtaxes are increased, which leads to;
- Every major employer moving shop somewhere else. No workers and no business equals no revenues.