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The Real Problems

Posted Jan 19 2013 5:53pm

Stanley Feld M.D.,FACP,MACE

I am becoming weary of the continuous political games President Obama and Congress are playing.

President Obama does best on playing the blame game.

Republicans do not know how to deal with President Obama.  

As we approach another Debt Ceiling increase neither the President, congress or the press are discussing the major problems the country faces.

One of the major problems is government waste in all departments and all agencies.

The waste is reproduced by multiple agencies creating an increasing number of bureaucracies leading to additional regulations. Some regulations are difficult to understand and many impossible to enforce.

The inability to enforce regulations leads to more agencies and greater waste.

The unsustainable entitlement spending for Medicare, Medicaid and Social Security are the key drivers of America’s deficit spending.

If these entitlements were originally constructed properly they would be cost effective and sustainable. They would not be a threat to America’s solvency.

They would be actual trust funds. They are presently virtual trust funds. The government borrows the money collected in the name of the trusts from the trust funds in order fund increased government spending.

The Social Security and Medicare Trust Fund receive unsecured government obligation bonds the trust funds cannot call.

Essentially the two funds are left to pay their obligation on a pay you go basis. As Medicare and Social Security rolls increases and longevity increases there will be more recipients than funders of Medicare and Social Security.

Our “under-informed society” is not aware of these facts. No one has explained it clearly enough to create a consumer reaction.

  “I t is an unfortunate fact that these programs cannot be modified for the long-term without the cooperation of both houses of Congress and the White House.”   

“There is absolutely no interest on the part of the Democrats in the Senate or Obama, in being serious about any meaningful reform, except to demagogue these issues.”

The media discusses everything but the causes of the problems. The public remains uninformed.

The administrative waste in Medicare has been estimated to be $250 billion dollars in 2008. None of this waste has vanished.

Instead the bureaucratic structure under Obamacare is causing the waste to increase.

Below is the new bureaucratic structure being developed by Obamacare .


Each one of these agencies creates rules and regulations . There have been 22,000 new healthcare regulations to date and still counting.

Most of the regulations pretend to add value to the healthcare system. However they all make the healthcare system more complex and complicated. The regulations decrease the ability of physicians to help patients get well and stay healthy.

The regulations create industries for secondary stakeholders. These secondary stakeholders make more money from the bureaucratic healthcare system.

America has been warned before. Listen to the following You Tube



His position is capitalism creates value. Capitalism with higher value creates more value.

He is against total government control over commerce. He state there are two kinds of government control.

  1. Government controls the system by regulations and owns the means of production.
  2. Ownership of the systems is privatized. Production is privatized to private companies but production is totally controlled by excessive government regulations. This leads to inefficient production.

Mr. Mackey’s point is neither system works. Free enterprise works because it creates competition. Free enterprise “capitalism” should have a conscious.  Free enterprise businesses must have a higher purpose.

Why do physicians exist?

Physicians’ higher purpose is to make people well. Making money should be secondary and is in most cases. However they should be compensated for their skills.

A plumber should have a higher purpose rather than just making money.

The higher purpose cannot be forced on the individual by government. It can only be adopted through competition in a consumer driven healthcare system.

Mr. Mackey wrote a beautiful article in the WSJ in 2009. President Obama and his administration have ignored Mr. Mackey’s WSJ 2009 advice.

 I think it is time our government starts listening to our successful entrepreneurs.

Government must be honest and transparent and inform the public with correct information. Only then can America be in a position to balance the budget and eliminate waste.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

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