Keep It Simple!

Paul Krugman has been getting a lot of heat for this thing, and actually, much of it is quite undeserved. Ronald Reagan may not have seen the hazard in which Garn-St. Germain Depository Act may have placed the nation, but the villainy had to wait for more corrupt lesser men. Paul is right, though, as the decision and passage of the Act cost Americans some $130 billion–I would actually add another $40 billion to that, through considering interruption of business flows. It must be admitted by all Sides that We picked up the habit of accumulating Public Debt from this Period, though One has to accept that Congress was even more responsible for this addiction than Reagan can ever be held accountable–both Democrats and Republicans. Reagan can be held responsible more than Most for the financial deregulation, but never as negligent as George W. Bush, whose inactivity deactivated any regulations once placed for safety. Blame should be placed where it actually exists, and the benefits of Hindsight should not be utilized to condemn, even though George W. Bush may seem a desecration of American values.

Mike Shedlock expresses more alarm than I would suggest, but the Kennedy proposal is pretty bad. I would suggest an Alternative where Medical Costs are first discussed rationally, then Payment schedules can be designed to pay for the Expense. Medical Wages should be separated from other Medical Costs; I would pay an averaged yearly payment to every Doctor, Clinic, and Hospital per registered Patient; this being the sole Wage payment to the specific entity, they expected to pay their help from this source which cannot be increased or subject Patients to further billing. This will be the method of determining Medical Wage scales, with much howling from medical personnel, but with a viable system for Wage suppression in the medical industry.

Medical Drug and Equipment Costs will be switched to payment of actual Production Costs plus 10%, plus whatever Royalties from Patents are applicable; though I very much would alter the Royalties granted. I would pass legislation which would limit potential royalties to $.10 per 4,000 proven Research or Development hours utilized in designing the Product. Such accounted hours will have to be presented and Approved prior to future Patent award, and current Patents must switch over to the new system within one Tax year following passage of the Act. This will seem oppressive to Research personnel, but this places them within the realm of suppressed Wage scales for Research personnel, and desirous for mass production and usage of their Product at reasonable Cost. I am only explaining the system; only economic analysis can effectively determine the base number of Hours which should be used to set the increment level of payment, with even the numeral payment amount subject to change. lgl