Published CommPro.biz 2014.02.27

The Solution
 

“What do you think is the most important problem facing this country today?” The folks at Gallup ask 1,000+/- scientifically chosen Americans that question the first week of every month. Last week (2014.02.17) they released the answers for this month. Jumping back into the lead it shared with “The Economy” every month from 2008 until last fall, was “Unemployment and Jobs”. So despite the chorus that has been droning “debt/deficit, debt/deficit, debt/deficit” during that same timeframe, the public has been worrying about unemployment, jobs and the economy. The deficit and debt has been at the bottom of their list after other concerns like healthcare and the politicians who are supposed to be doing something about these problems.

Actually the politicians beating the deficit drum are the ones who were in power when it was created. So if the people are concerned with unemployment, jobs and the economy, why do they keep sending the debt creators back to Washington to complain about their creation? The answer is twofold. Firstly, those who benefit most from the policies of debt creation –the ultra-wealthy– pour money into the election campaign coffers of the debt creators. Secondly, gerrymandered districts –immune to democracy– have been created for these servants of the wealthy.

How do we create jobs, reduce unemployment and fix the economy? We don’t claim credentials when it comes to economics, nor are we relying on the host of economists who see the solution we see. We are just reviewing the past. If you start at the beginning of the modern economic model –the industrial revolution and the birth of capitalism– you find the beginning of the pattern of periodic downturns in the economy, mostly caused by one greedy sector or another.

If you examine that series of ups and downs you will find that without exception, when the economy went down, recovery was triggered by the same solution. The government stepped in creating jobs, jumpstarting recovery. There is not a single instance in the United States or any other modern economy where a downturn has been reversed by any other means, not one. The idea that austerity is the path out of an economic downturn is a proven failure. Anyone who reviews history can see that. We see it today in Europe, nations teetering on the brink of bankruptcy. Germany, the strongest nation in the EU, is stagnating. We are the strongest nation in the world. Yet we are creeping; dragged down by the debt creators.

Now is the time to repair our crumbling infrastructure, to invest in education, to fund research, to create the jobs that will pull our economy out of the mud. To do what has been done every time we’ve faced this problem for more than 200 years, jumpstart growth. The people have been worrying about unemployment and jobs for five years. We know how to fix that; it could have been addressed in 2008. Makes you wonder why some of those charged with fixing it have instead focused on the debt/deficit; maybe a distraction?

"Am I wrong?"--"Am I Nuts?"-

-"What do you think?"--"Do you agree?"

 Published CommPro.biz 2014.02.20

A Bribe Is A Bribe Is A Bribe

A recent (2/09) New York Times story detailed the hiring of a young woman at the behest of a family friend. A job was created for her at JP Morgan Chase. Her family friend just happens to hold a powerful position in a Chinese agency that oversees insurers. The bank was looking to snag business deals with a number of the insurers that her benefactor holds sway over. There is nothing unusual about arrangements of this nature. What makes this one stand out is, that the “ask” was in the ear of Jamie Dimon, top dog at Chase. The young woman was not only in the room, she was serving as the official’s translator.

First off, the young woman was an outstanding candidate; Chase was lucky to get her. And Dimon was careful to distance himself from the hire. However, Chase did get a bunch of deals right quick from companies under the regulator’s gaze. It seems clear that in addition to getting a first rate employee, Chase made a ton of money from her family friend’s ”contacts”. Because a government official is at the center of this arrangement, a case might be made that hiring the young woman at his behest constitutes a bribe. That’s a big “No-No” under United States law.

This is not an isolated case. Chase has a history of jobs for deals as do most all of the monster banks; Goldman Sachs, Citi, and all the usual suspects. Legally they are likely inside the safe zone; ethically they are not even close. While Dimon was careful to give himself cover on this hire, it doesn’t change the underlying truth. These deals –especially in light of their frequency– indicate that they are part of the culture of these banks. The culture of any organization reflects the ethical and moral compass of its leader; in this case Jamie Dimon.

These monster banks slithering around making backroom deals to gain the favor of business or government officials are ethically pathetic. A good business leader knows to back away from any deal that is not a good deal for everyone involved. Cash under the table or hiring somebody’s kid, either way it’s a bad deal for the buyer and the seller. It’s an admission by the seller that what they’re selling isn’t worth the price, and/or it means the buyer didn’t get the best deal for their bucks.

These banks are too-big-to-fail and way too-big-to-manage. They’ve created a greed driven culture that does anything to keep the bucks rolling. They’ve trampled the real bankers in our community banks, using ill gotten profits gained by gambling with their depositors’ funds; all insured by the FDIC (that’s us). The solution is to break these monsters up before they trigger another crash. We did it in the 1930s  and set up rules that kept us safe for the better part of a century. Lesson learned? It’s time to repeat; break up the too-big-to-fail banks before they fail again. How hard is that to understand?

"Am I wrong?"--"Am I Nuts?"

"What do you think?"--"Do you agree?"

 Published CommPro.biz 2014.02.10

Legally But Not Medically Necessary

Depending on whose numbers you look at, somewhere between 5% and 40% of the cost of healthcare in America is spent on “Defensive Medicine.”  In 1994 the Congressional Office of Technology Assessment defined it: “Defensive medicine occurs when doctors order tests, procedures, or visits, or avoid high-risk patients or procedures, primarily (but not necessarily or solely) to reduce their exposure to malpractice liability.”

The body formally known as the Trial Lawyers Association, the barracuda bar that strikes fear into the hearts of all in the medical world, says that defensive medicine does not exist. They see it as a big scam that the medical types use as an excuse to ratchet up their income. And while we don’t buy that, there is a certain amount of truth in what they say. Testing facilities owned by doctors, hospitals and others in the game certainly benefit. As do those who consult to affirm the decisions made by their colleagues.

The leading solution is Tort Reform, restrictions on the legal profession. And/or limitations on the amount those harmed by the medical system can collect. Some of those reforms have been set up by state governments, however, and they don’t seem to help. That either means the lawyers are right, that unnecessary medical stuff reflects greed among medical providers, or that the practice is so ingrained that fear makes it near impossible for them to stop.

A totally different approach is now under consideration in Florida and Georgia, a concept that eliminates the possibility that any medical player could be sued. The Patients’ Compensation system would take medical errors out of our legal system entirely. Panels of experts would be tasked with evaluating claims and awarding the injured party funds to cover their losses. It would be quick and fair.

We spend more per-capita than other countries on healthcare but our outcomes rank below third world nations. We fail to make it into the top twenty-five in most cases. On the other hand our VA Health Care system provides excellent care at 40% less per patient than the national average. That’s an impressive number made even more impressive when you look at their patients. Mostly a bunch of beat up old folks, with some really beat up younger folks from our recent wars. Compare that to the national patient base; it includes all those folks under forty who are in relatively good health.

Oh yes, the VA enjoys a few other advantages. Their people don’t have to worry about lawsuits. And they don’t have to spend a lot of time filling out paperwork for insurers. They were among the first to go digital; any Vet can go into any VA facility in the world and they can pull up their records in seconds. All this allows them to focus on prevention. And the VA can negotiate to hold down drug costs, unlike Medicare that is prohibited by Big Pharma who has our Congress bought and paid for.

"Am I wrong?"--"Am I Nuts?"-

-"What do you think?"--"Do you agree?"

Published CommPro.biz 2014.02.04

The Bad Apples

Every year Harris Interactive surveys Americans on our level of trust in a group of nineteen industries. Over the last ten years a dismal outlook has gotten worse. Harris asks, "Which of these industries do you think are generally honest and trustworthy – so that you normally believe a statement by a company in that industry?" Not a single industry met that standard in the minds of even half of Americans, not one in the last decade. Most businesses are trustworthy, it’s the few bad apples that drag everyone down

Supermarkets did best at 30%. That means 70% of us do not trust supermarkets. The list gets worse quickly. All but one of the remaining 18 industries scores in the teens or a single digit. Oil and tobacco companies are at the bottom of the list. Oil comes in at 4%, putting their distrust level at 96%, tobacco scores 3% putting their distrust level at 97%. Fitting for a couple of industries that have fed the grim reaper millions of people around the world? Tobacco is at the bottom. We can’t imagine how anyone could have a positive outlook when it comes to tobacco. It’s more like a criminal enterprise that has killed more people than all the dictators of the 20^th century combined. Imagine, more than the big three –Mao Zedong, Jozef Stalin and Adolf Hitler– plus all the minor tyrants of the last century. 

Hospitals came in second at 28%, dropping from 36% in 2012, a result of the wide range of healthCARE entities that have become healthGreed entities. Banks come in at number four with a trust level of 18%. That means eight out of ten Americans have no trust in anything our bankers say. In 2004 the banks had a 40% trust level. That collapsed with the recession and recognition by the public that the monster banks are out of control. We would guess the 18% who trust banks are referring to their local community bank. In the same poll the number of Americans who say banks should face stronger regulation jumped 50% in the last decade. No surprise given what’s happened since the banksters lobbied away the regulations that protected us for almost a century. 

Industries sharing a low trust level and support for more regulation are topped by two that are literally killing us, tobacco and oil. The health care industries follow close behind. Driving costs out of control are Big Pharma, insurers and hospitals focused on money in this industry group that is immune to competition. Any fix is being blocked by those we elect to protect our interests. Our legislative bodies, in the states and at the national level are controlled by the lobbyists who pour money into their pockets. That leaves all of us out in the cold, spending more by far than on healthcare any nation on earth and getting third world outcomes.  

"Am I wrong?"--"Am I Nuts?"--

"What do you think?"--"Do you agree?"