The Economics of Death: Crash Course Economics #30
TLDRThis economics video examines how death impacts the US economy. It notes rising life expectancy but disparities by income level. Key points are that end-of-life healthcare is very expensive, costing Medicare billions, but studies show expanding hospice access could lower costs. Funeral costs are also high in America. The video advises planning ahead with advance directives and wills to reduce costs. Though uncomfortable, confronting mortality has economic benefits for society and can ease family burdens.
Takeaways
- 😀 Life expectancy has increased globally, but there are still disparities between countries.
- 😕 In the US, more people now die from old age, but dementia is also on the rise.
- 😟 Longer lifespans can benefit the economy, but more chronic illnesses have high costs.
- 😫 End-of-life care in the US is very expensive, with unclear benefits.
- 😡 Funerals and burials in the US can cost over $15,000.
- 🤔 Medicare and Medicaid help pay end-of-life costs for some people.
- 🤨 Advance directives can help reduce unwanted medical costs before death.
- 😐 Many people avoid planning for death, though experts recommend it.
- 😃 Life insurance and wills can ease financial burdens on families after death.
- 😊 Making plans for death now can save money and help loved ones later.
Q & A
What are some key factors that have contributed to increased life expectancy in the US over the past 50 years?
-According to the script, some factors that have contributed to increased life expectancy in the US over the past 50 years include: improved health and safety leading to fewer accidental and violent deaths, advances in medicine and healthcare, and more people dying from natural causes at older ages.
How does income level impact life expectancy in the US?
-The script states that income level has a significant impact on life expectancy in the US. An upper income man in 2010 was expected to live to 89 years old, while a lower income man was only expected to live to 76 years old. This 13 year gap highlights the disparity.
What are some economic impacts of increased lifespans and aging populations?
-The script discusses both potential positive and negative economic impacts. On the positive side, people living longer consume more over their lifetimes, contributing to economic growth. On the negative side, caring for an aging population with more chronic health issues creates rising healthcare costs.
How expensive is end-of-life care in the US and what factors drive these costs?
-End-of-life care in the US is very expensive, accounting for a large portion of Medicare spending. Factors driving these high costs include aggressive treatments and procedures to prolong life at all costs, frequent hospital/nursing home stays instead of home care, and high spending in the last few months of life.
What are funeral costs like in the US?
-According to the script, the median cost of a funeral with viewing and burial in the US in 2014 was $7,181. Major funeral expenses include transportation, embalming, facilities fees, caskets, and burial plots. Total costs can exceed $15,000.
What steps can individuals take to reduce end-of-life costs?
-The script recommends advance planning and directives, like living wills and healthcare powers of attorney, to clarify wishes and prevent unwanted aggressive treatments. Purchasing life insurance and pre-paying for funeral expenses can also reduce costs.
How does the government try to regulate end-of-life costs?
-The government regulates the funeral industry, has expanded Medicare hospice benefits, and reimburses doctors for end-of-life conversations. This aims to cut unnecessary costs while improving quality of care.
What happens to debt when a person dies in the US?
-It depends on the debt type and state laws. Credit card debt may go unpaid if the estate lacks funds to pay it. But debt collectors may still try to get families to pay, even if not legally obligated.
What are estate taxes?
-Estate taxes are taxes levied on the value of assets transferred from a deceased person to their heirs. Proper estate planning helps minimize these taxes.
Why is planning for end-of-life care economically beneficial?
-Planning reduces unwanted and futile medical spending at end of life. It also ensures funeral costs and debts are handled, preventing burden on families. This promotes cost-effective outcomes for both individuals and society.
Outlines
🤔Introduction to Economics of Death
Paragraph 1 introduces the episode on the economics of death. It notes that death is inevitable but has significant economic impacts. It provides background on increasing life expectancy globally and in the US, where people now live longer and die more often from natural causes rather than accidents. It also notes disparities by income, where higher income people live longer and receive more government benefits over their lifetimes.
💀The High Costs of Dying in America
Paragraph 2 discusses how longer lifespans affect the US economy. While some argue they boost consumption and growth, others note the costs of age-related illnesses like Alzheimer's. End of life care is expensive, with Medicare spending billions on patients in their last 2 months. Most people want to die at home but do so in hospitals, often with intense treatments of questionable benefit.
🪦What Happens After You Die
Paragraph 3 examines the costs associated with death itself. Funerals cost over $7,000 on average, with itemized costs for services like embalming and caskets. Burials cost more than cremations. Government regulates the funeral industry but individuals can plan ahead with insurance, advance directives, and wills to reduce costs, though few do.
Mindmap
Keywords
💡life expectancy
💡income inequality
💡healthcare costs
💡palliative care
💡funeral costs
💡advance directives
💡life insurance
💡debt
💡wills
💡denial
Highlights
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Transcripts
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