Government Spending is Climbing to War-Time Levels

During World War Two, government spending as a percentage of GDP was about 45%. Understandably. It is over 20% right now, with the Obama administration on a spending tear. And that percentage is rapidly on the way up, headed much higher, as bailouts and additional programs are proposed.

So, you see where the government-centrist planners envision their left-leaning philosophical opening in this country? And what it means for business? Particularly those who cannot compete with the big company competition?

Remember: Government spending displaces funds available for the private sector. When that occurs, the smaller firms seeking funds are less likely to get them. Yet, they are the entities who mainly create jobs.

Costs of Health Care

This is another of many health insurance ideas on which I have some comments.

The Obama administration seems intent to make the United States more like the rest of the world when it comes to government-enhanced health care.

Presently, Germany leads the pack in universal care. As of 2008, 52% of employee costs went to their government for social services and health care. France was right behind at about 49% and Italy at almost 47%.

That tells only part of the story. Health care operated in a competitive market can be a growth industry, and highly productive. Not so, when operated by government, as in Europe,

The rest of the story involves rationing of services that keep costs within the described levels. And the number of doctors supplied for that demand.

Another Health Care Idea

This is but one of many health insurance ideas on which I will have future cogent comments.

Break up a source of potential administrative nightmares, if you must have some sort of government system enforced as public health care. At least have each state administer its own system.

You can have a central data bank for important medical information, but each state would enforce what it wants for its own citizens. That would be in direct response to what its voters want and for what they might want to be taxed.

Ideally, however, the health care system ought to remain entirely private. No Trojan Horse public plan of any sort. Changes in small steps should be made with regard to tort reform, policy portability and the coverage of presently uninsurable citizens.

How Creative Entrepreneurs Can Lose Their Business

Periodically I watch sad sagas of highly creative entrepreneurs who build a business from scratch and do extremely well very quickly, expand rapidly, and then watch the business fall apart.

The reasons? Three. Many are poor planners from the very start. They often lack an efficient business plan which can guide them in their financial planning.

And the lack of sufficient funds, which they probably were unaware of early on. Because of poor planning many entrepreneurs are clueless about how short of capital they are eventually going to be.

And three, unfortunately, they are incapable of managing a business, or getting a manager who can.

The Worst Time to Increase the Minimum Wage

You can gauge how wise a politician is when he or she proposes an increase in the minimum wage. Because research shows minimum wage increases always cost jobs of entry level workers.

Those at lower levels generally leave for higher wages or get raises with time. It’s usually not the same worker remaining at that lowest level. A fact that proponents conveniently overlook.

But minimum wage increases do cost jobs. Employers must think twice in estimating the value and affordability of their workers. Especially small businesses who are responsible for the bulk of American employment.

The minimum wage is a ploy of powerful unions whose contracts are automatically revised up from minimum wage levels.

What is more, it is almost criminal to impose higher minimums during a recession or depression That stymies the possibility of stimulating any increase in job opportunities.

Having a Baby Needs Regular Health Insurance?

This is but one of many health insurance ideas on which I have cogent comments.

A distinction ought to be made when buying insurance between the need for catastrophic insurance and buying coverage for a probable event. You buy insurance should you have an automobile accident and not for the purchase of gasoline you will definitely need for the auto.

In the same way, you buy health insurance in case you get an illness worse than a common cold. If you get married and intend to have several kids, you are not getting sick. You are anticipating having kids and need coverage for that. It’s not anticipating a catastrophe such as being in an accident or getting very sick. Unless childbirth evolves into a medical emergency. Routine childbirth costs can be reduced under competitive conditions much lower then they are today, without government interference.

There ought to be means of separating these two kinds of costs.

On top of all this, malpractice suits have gotten out of hand, especially with maternity awards. That affects this absurd situation much further. The reason why I mention the childbirth factor.

These two coverage-path distortions are now thrown together into a common health insurance package by left-leaning politicians that skew the numbers even more.

There is a health insurance solution . Take the problem apart in steps. Revamp present tax incentives. Guarantee coverage. Consider the childbirth factor.

By keeping government hands out of a one-plan-fits-all solution. By having the ability and competition of almost 1500 private insurers compete nationally.

We Can Do a Better Job of Measuring Unemployment

Unemployment figures by themselves can be very misleading. For one thing, they can be adjusted after publication because of errors and short-term conditions that may occur.

Then other considerations must be part of the picture for the analysis. Job creation is getting smaller. Look at that number, alongside the unemployment figure. Other factors ought to always be considered as well:

One: The length of time people are unemployed is now longer than since 1948.

Two: Employees are taking unpaid leave in larger numbers.

Three: People have given up looking for work. Some may have actually taken early retirement.

Four: The average work week is getting smaller.

All these factors affect what we see as unemployment.