“…the very real problems with the health-care system mask a simple fact: Without it the nation’s labor market would be in a deep coma. Since 2001, 1.7 million new jobs have been added in the health-care sector, which includes related industries such as pharmaceuticals and health insurance. Meanwhile, the number of private-sector jobs outside of health care is no higher than it was five years ago.

“…Almost invisibly, health care has become the main American job program for the 21st century, replacing, at least for the moment, all the other industries that are vanishing from the landscape.

“…Make no mistake, though: The U.S. could eventually pay a big economic price for all these jobs. Ballooning government spending on health care is a major reason why Washington is running an enormous budget deficit, since federal outlays for health care totaled more than $600 billion in 2005, or roughly one quarter of the whole federal budget. Rising prices for medical care are making it harder for the average American to afford health insurance, leaving 47 million uninsured.

“There’s another enormous long-term problem: If current trends continue, 30% to 40% of all new jobs created over the next 25 years will be in health care. That sort of lopsided job creation is not the blueprint for a well-functioning economy. One solution would be to make health care less labor-intensive by investing a lot more in information technology.” —Business Week, 9.25.06

With the ongoing healthcare debate, I thought it interesting that we haven’t heard more stories like this one about healthcare’s role in the job market. It makes an excellent case for how multiple elements contribute to an overall situation. Yes, healthcare is expensive. However, it’s also the source of 1.7 million jobs since 2001.

When you make healthcare less expensive (in theory), how many jobs will be lost? See the conundrum, particularly as unemployment ticks up to double digits?

We’re shortsighted if we choose to focus on any one thing (e.g., cost of healthcare or jobs) as THE deciding factor behind our decision making. We sometimes allow single factors to play a central role in investment decisions, like a down day on the market or an overheard comment at the office. How often do decisions based on solitary, random information work to your advantage? Is it often enough to outweigh the potential risks?

Fortunately, the benefit of making and following a financial plan means you avoid the trap of letting single factors change your course. While course correction is necessary, you’ll make the corrections based on predetermined criteria versus outside factors that may or may not be relevant to your long-term goals.