The Pipe

Having worked in the financial field for a number of years, one thing I learned was a simple principle, anything to do with money is like a pipe, what goes in one end has to come out the other.

Lately, I have seen a new kind of ecomonics that claims to create money where it does not exist. For example, claims that putting more people in the health care system but actually reducing costs and lower the deficit. Clearly, the current administration has no interst in lowering the deficit. Even China, who basically owns the United States, no doubt indicated by Obama's less than friendly treatment to Tibet, has warned the president to stop increasing the debt.

Truth is that like credit cards, debt has to be paid and yes, you can print more money but all t hat does is strech the pipe, it does not actually create money. Think of four poker player who are each given chips which are valued at one hundred dollars. If each of the four players is playing for a share of a common pot, say $400, and you double each of the player chips you still only have $400 to distribute.

The $400 is like our GDP. Its not determined by how much money the government prints but what America produces and how much it gets for those products. Now government spending will also increase it but it does little to help that number to go up other than artificially proping it up with jobs. I can, for example, employ a young naive student out of college to count polar bears and prayer 5 times a day in the direction of Al Gore but that does little to help create jobs making products that are going to compete on a global market.

Look at it this way. If you put 10 liberals on an island and they sit around talking all day about everthing they need to survive but never actually do it (such as produce products), then they will starve or be killed in the next storm because they had no shelter.

Labor unions want higher wages and benefits but they complete on a global market. This can't be sustained unless you do what the goverment probably plans to do with GM which is continue to pump money into it. Besides, who wants to buy cars that run on pedal power.

There is clearly no doubt that health care could use an overhall but having worked with people in that field I would suggest somethng radical, let them figure out a solution rather than relying on starry eyed liberals who hang up pictures of Mao. The truth is that tort reform is the only real meaningfull way to reduce costs because money is wasted on doing tests which are merely defensive and trying to keep the ambulance chasing lawer away.

Reducing the number of mamograms and pap tests is called rationing. Obama knows that the easy way to reduce costs is rationing but sorry folks "he lies". Yes, that evil man who said that was telling the truth. Truth, remember that one. I think sometimes our government should try it.