A single thought conspired and overwhelmed the synapses of my being the other day: Costs! Everywhere you look nowadays there are diatribes from famous and not so famous, from intellectuals and those who call themselves intellectuals, from business people and those who have never created or operated a business and from politicians. The lingering tormented flame that attracts all these disparate beings also, I fear, will burn them.
1. “We are running out of money!” well yeah its true! If you spend more than you earn eventually the debt will bankrupt you. No, that concept is on the decline because “experts” proclaim that we cannot run out of money because we are the innovators and the creators (by we, I mean the USA). But dare I ask about the $17.6 Trillion debt? and the $16.8 Trillion of Goods and Services (GDP) things become a bit fidgety.
2. “Healthcare costs are so high!” Agreed!. Okay now let us dissect that little nugget to its essence of quarks and leptons. 30% of healthcare is directly related to administrative costs. You know the kind that tells you whether you can care for the patient or not based on some obscure guidelines of population medicine correlational science data. The cost of healthcare in the United States based on Dan Munro’s article in the Forbes was $3.8 Trillion in 2012! If we were to reduce the administrative costs, eliminate most of the intermediaries, between patient and physician,s we could easily eliminate close to $1 Trillion. “Oh No, that cannot be done!” will be the cry from the vested interests of the intermediaries. But real reform is painful and agnostic!
And as the public funds continue to pay for the healthcare expenses increasingly the problem becomes obvious to anyone with a set of eyes and a brain to go with it! The skinin the game is being coddled by the politically engineered false safety net.
Reforms with weak measures and countermeasures will lead to no reduction in expenses:
Merely polishing the old paradigm will not work! Decreasing the burden of unnecessary costs and revisiting the concepts of how to manage as a profitable country would necessitate a reorganization of the hierarchical tall organizational structure into a lean-mean horizontal structure that fosters real innovation and not window-dressed words emanating from silver-spooned mouths.
Tort Reform is not likely when Congress is occupied by the Lawyers and they are shrewed enough to fund their lobbyists with their earned largess. That by the way according to some would eliminate over utilization and duplication of CYA services and reduce the costs by some 2,4%! That percentage translates to $55.6 billion of which $45.6 billion annually is the cost of defensive medicine.
3. Business Costs: The cost of doing business, any business- the core of the economy, by any measure has gone up. The Cumulative Regulatory costs in loss of productivity and Employment are huge, Meanwhile “the Regulatory Compliance Costs in 2008 were $1.863 Trillion.
The stranglehold of a regulatory bias, which by its very nature and being, threatens the potential for any future success lays bare the increasing probability of societal failure. Those that love regulations to protect them from the evils of witches, shamans and snake-oil men fail to recognize the risk of such protection.
So the rallying cry from all walks of the expressive, political divide is muted by the facts that exist today. Costs rise not solely as a consequence of inflationary pressures but from all the nuanced politically forged and well-entrenched ideology of excessive, obtrusive and overwhelming managerial interventions. While the initial intent may have been noble and the desire to “do no harm” a desire, the continued extension of reach can only lead to greater harm to the economy.
In reality human kind has a keen interest in Liberty and with it an accompanying cling to the Instruments of avarice that feed it the safety measures against the risks of risk-taking, innovation and creativity. Espousing the latter wretchedness on the grounds of finding comfort in a cocoon, sheltered from the many vicissitudes of life itself leads to the ceremony of perilous circumstance, of servitude and a longer term harm to living itself.
Let us remind ourselves that we must control our own individual destinies. We must shape our own individual futures and we must above all cherish the freedom and liberty of being the Unum in ePluribus unum.:
“What light is to the eyes - what air is to the lungs - what love is to the heart, liberty is to the soul of man.” Robert green Ingersoll