Colorado Health Care Costs Keep Climbing Despite Growing State Subsidies
By: Nash Herman | Commentary, Complete Colorado
In economics, it is well understood that the larger a business becomes, the more cheaply it can produce goods or services due to lower relative fixed costs, more technical know-how, and increased specialization.
Why then is Colorado’s largest industry in terms of employment–health care–only becoming more expensive?
Subsidies inflate costs
Let’s back up. In 1990, Colorado’s largest industry by employment was retail, which also dominated most of the rest of the country’s employment as well, along with manufacturing.
Along the way retail and manufactured goods became cheaper for consumers, as expected, relative to inflation.
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