Saturday, October 3, 2009

Economic Engine, continued

The WSJ reports on the continued employment gains in the health care sector. Over the past year, 300,000 jobs have been created by the ostensibly profligate health care industry. During the same period, non-farm jobs nationwide fell by 6 million.

So obviously we need to cut health care spending right? Or wait a second. Maybe we depend on the fact that we spend 17% of our GDP on healthcare. So maybe we ought to just cut spending in that sector a wee bit. A smidgen perhaps. At least until those steel mills and auto plants and textile factories start churning out product again....

4 comments:

Trader Bob said...

I think it's time for a green revolution. Everyone should have solar panels installed and some of our energy consumption will be taken off the grid. The only problem with this idea is that Al Gore said he invented the sun and we have to pay him useage fees.

Anonymous said...

yeah, no need to bring in money from abroad. just have an internal repairs and maintenance service economy passing the same money around itself. compulsory insurance and massive government assistance so the whole machine doesn't topple. tremendous.

Trader Bob said...

For our country to thrive we need to have capital flows from US exports which will reduce our trade deficit and strengthen the US dollar. Healthcare technology and green technology could be made in the USA and exported abroad. The problem is green technology can be developed in the USA and manufactured in China at 10% of the cost. China and Mexico have no standards like OSHA for workers which add costs to production. The US needs to get back to production, saving, and investment not borrowing and consuming. The Chinese consume 35% of GDP while the US consumes over 70% of GDP. The US saves less than 5% of their earnings and the Chinese save more than 35% of their earnings. I guess dead broke is the new American dream. The problem begins and ends with the monetary system and the Federal Reserve. I'm half way through End the Fed by Ron Paul which highlights how the banking system has robbed from the common man through inflation since its beginning in 1913. The biggest conspiracy going in America is the conspiracy of optimism. Some how people believe that basic economic laws don't apply to the US and its reserve currency. The Weimar republic in Germany in the 1920's where they had hyper-inflation can happen in the US. This type of hyper-inflation happens because people lose faith in the currency. Prices go up because your currency is worth less and less. Go Browns!

Anonymous said...

Outsourcing has been a problem for years and in some circles is stated as being the beginning of our current economic issues. Along with the sheer arrogance of our car companies not knowing how to compete directly with foreign companies and well, here we are. There is no quick and easy fix it for anything that has taken decades to happen. The Rust Belt, such an ironic name, should be where innovation comes to life in regards to energy and other products. I am not sure it will happen.
As someone who is in healthcare, there are massive mistakes being made there as well such as phasing out LPN's and in some places RN's. The disparity in education on the floors of a hospital will be unwelcome especially if insurance companies keep Nurses, now BSN's and up, busy with their ridiculous amount of paperwork and leave care to just a CNA.
MissFifi