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1.On page 278, the author mentioned that one of the important pressures on health spending arises from new technologies. Although new equipment help to detect illness more accurately, it complicates the procedures and raises health care spendings. The complicated procedures decrease in the effectiveness because of various tests and procedures. Do you think a too rapid growth in technologies will bring a burden on the health care system? Is it necessary for the government to slow down the application of technologies in hospitals sometimes in order to reduce the growth rate of health care spendings?
2.Page 209 discusses the deficit of the social security fund. While the deficit is large, a straightforward increase of one percentage point in the payroll tax rate would entirely erase the 75-year deficit (as calculated at the time of the books publishing). After looking on the internet, I saw that the current U.S. payroll tax is still 6.2% which is the same that it was at the time the book was released. This means this strategy has not been utilized. Why do you think this is? If this isn’t the correct solution, what others might be better?
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