Lobbying is the Cause of the Problem

There was an article in Bloomberg news that go to me so I emailed a comment straight to the reporter. It basically said that the problem with healthcare is in the numbers and then forgot to show the numbers. I do not know if he wanted to show the real numbers or he was just playing around. The following is my response to him.

Your right. In fact you are dead right. It is all in the numbers and they stink. Healthcare costs in US going over 20% of GDP while every other developed country provides the same services for half that price. That shows that 10% of the GDP is waisted on unnecessary healthcare and excessive costs. He is how I like to measure the waste. In Canada they spend about $4500 a year for healthcare per person. Other developed countries are about the same. In the USA we spend over $8500 per person. The difference is $4,000 per person. For a family of four that is $16,000 a year (not for healthcare but for the waste in the system). Over a ten year period that is $160,000 and for a thirty year period of a working career with some compound interest it comes to half a million dollars. That is the money the family need to pay of the student loans, the mortgage and save for retirement. None of these goals are now feasible.

The Troubled Assets Relief Act that cost the US government $800 billion could be paid for by reallocation of the healthcare waste for one year. A similar amount was spent in the stimulus package that Obama got from Congress. We can have such a program every year for years.

If we gave the waste (again not the real cost of healthcare) to the military we could triple the size. We would have a military big enough to go to war with the whole world and we may be able to win it.

Lobbying is the cause of the problem. Forget making money the old fashion way. That only gives returns of 20 % or so. By lobbying the returns can be as high as a thousand to one. That is how to make money in America at the present time. We know the waste in healthcare is approaching a trillion dollars a year. If we take one, one thousands of that amount we have a billion dollars. Give that money to the lobbyists and you get every Congressman and Senator to do tricks that Monica Lewinsky never dreamed of.

As you say, it is all in the numbers and I just gave you the numbers. It is like a big elephant in a room that no one wants to see. The republicans do not see it, the democrats do not see it, the press often does not see it and in your article while you point in the right direction you do not see it.

The waste is so huge it is killing the country. With so much money spent in the wrong direction the economy cannot move. The fact that it is not moving is reported all the time but the press blames it on monetary or fiscal policy. The low interest rates by the Federal reserve, the bailout program to save the banks, the fiscal stimulus packages are not working. That is because the economy is sick and all the government has to offer are steroids and everyone knows that such drugs while they may work in the short term can kill you in the long term.

The Middle East has had a number of revolutions, the Ukraine has joined the trend, Venezuela is about to do the same and in the US everyone knows that neither political party is able to deal with the problems, that corruption (n the form of crony capitalism is pervasive. And when corruption levels get too high the recipe for a revolution emerges. We are on the road going in that direction and your inability or unwillingness to see the elephant will push us further