Will America avoid fiscal collapse?

Approximately two-thirds of federal spending grows on autopilot based on laws that exempt these programs from the annual budget process. Referred to by Washington insiders as mandatory spending or entitlement spending, the list of programs that fall in this category include Medicare, Medicaid, ObamaCare, Social Security, welfare and other income security programs like food stamps and federal housing assistance, as well as student loan programs, and the refundable part of the child tax credit. 

Despite the different nature of the programs, Medicare and Social Security are by far the most significant drivers of the impending fiscal collapse. 

As the federal budget becomes further unsustainable, change is inevitable. Lawmakers should approach these changes with deliberation and reform current policies gradually to enable the American people to adjust to them without doing unnecessary harm. Not reforming is not an option. 

In the absence of reforming entitlement programs to reflect longer life expectancies with higher eligibility ages, lower birth rates by reducing the cost of benefits for younger generations, and higher health care costs by introducing more choice and market forces in the health care sector, the American people will still pay the costs of the fiscal collapse, be it through higher taxes, greater inflation, and a smaller economy that may put the American dream out of reach for the next generation. We cannot escape from this fiscal reality. But we can face it with dignity and conviction.

DYI:  Here we go again with an attack on entitlement programs that all can be fixed without gutting the programs.

 

Let’s start off with the biggest of the biggest Medicare/Medicaid.  The Medical Industrial Complex for decades has and continues to collude in order to price fix among their competitors and now has moved from local monopolies to regional.  They are all in civil and criminal violation of the long standing laws passed by Congress to deal with the Gilded Age of robber barons.  Robinson-Patman, Clayton, and the Grand Daddy Sherman Anti-Trust Acts all have massive civil penalties AND criminal penalties up to 10 years in prison! 

If these laws were enforced medical costs would drop by 75% across the board.  Or to be more specific, depending on the severity of illness, prices would drop 60% to 90%.  For every day mundane illnesses insurance would not even be needed!  For catastrophic illnesses a family or individual would require an insurance policy easily attainable due to its low cost in the new competitive environment.

  

Even if these two programs were gutted the economy will continue to go into economic downward spiral as this one industry dwarfs the remaining economy at higher and higher levels.  This is effectively starving out other industries for consumption and investment.  Also the medical field domestically does not add to our GDP as it is a cost borne by sick people.  The only time that it does is when foreigners come here for treatment or when products are exported.  Other than those two exceptions these costs should be subtracted from GDP giving us a truer picture of economic performance.

The pharmaceutical industry through the use of bribes or should I say campaign dollars years ago pushed through legislation making it a felony for the re-importation of ethical drugs.  This massive anti-competitive legislation is simply OUTRAGEOUS!

 

A Federal offense is now imposed for a run of the mill business tactic.  The reason is simple prices of drugs are “jacked up” here in the States and depending upon the wealth of the nation they are marketing to will determine the price for sale.  If made legal by repealing this anti-competitive law prices for drugs would drop from 60% to 90% depending on whether remaining on patent or available as a generic.

Big pharma is now so out of control they are now committing massive academic fraud in their research reports as to the level of effectiveness for many of their drugs.  Plus they are using deceptive and manipulative statistical marketing tactics to bamboozle both doctors and patients alike all to benefit increased sales.  This is illustrated by the YouTube video of a British top notch Cardiologist when discussing stents and statin drugs.  Near the end of the video this doctor calls this industry a criminal enterprise.  His qualifications are impeccable and has been published both here in the States and England in all of the top medical journals.  A loose canon this doctor is not just telling the unfortunate truth and reality of today.

Social Security is an easy fix.  First Congress should change the law making this a pay as you go program from general revenues ending the regressive F.I.C.A. tax.  If these laws that I mentioned earlier were enforced for anti-competition against the medical industrial complex prices on balance will drop by 75% leaving a huge amount of dollars for Social Security.  Simply put case closed problem ended.

Zero effort from any Federal politician even remotely pushing this agenda.  The economy is being ground down as we speak for many reasons due to fraud.  The medical industrial complex is doing it all by themselves add on all of the other frauds I’ve reported on it is a miracle the economy isn’t worse.

   DYI