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Archive for June, 2009

If Real Healthcare Reform

Posted by hanson807 on June 20, 2009

was what the democrat party was after, they could do it without taking over the healthcare system. There are steps the congress and the senate could take to make healthcare more affordable for everyone and add an incentive for people to get healthcare.

Right now if you want to deduct medical it can only be the portion that is greater than 7.5% of your income. “You can deduct only the amount of your medical and dental expenses that is more than 7.5% of Dental Expenses your adjusted gross income (Form 1040, line Expenses? 38).(chapter 21) If this was changed so that all medical expenses were tax deductible and not subject to the above 7.5% rule, the entire cost of your medical insurance could be deducted. Then the government would have no need to raise taxes to give you money to pay your insurance. Secondly, they could give companies a tax credit equal to 15% of the money that they pay for health insurance for their employees. The company would have incentive to provide good health insurance. Again, the government would have no control and would not have a hand in selecting your health insurance or dictating cost to the company.

Other steps could be taken to reduce the time drugs and medical procedures are approved by the FDA. For new drugs and procedures a tax free period could be enacted. This would stimulate bio-medical research possibly providing much needed jobs for the economic recovery.

These are simple, government free methods of stimulating growth, lowering taxes and keeping the government out of the healthcare business. But that isn’t the goal is it? That is not what the left wants. To do these things is to admit the private sector and individuals can solve problems that the government can’t. And that is something they are not about to do.


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The Economy Continues to Slide Down

Posted by hanson807 on June 16, 2009

The oil and coal production and use have been declining now for almost a year. Parts and use of trucking has dropped significantly in the past year. Airline travel is also dropping off. Trucks are shipping 13% less freight. These kinds of declines do not show a slowing of the decline of our current economy, they show just how deep we have currently droped.

Tax receipts, the money the IRS takes in has declined 34%. This is indicative of a huge decline. That shows that the American public has taken home significantly less pay than the previous year. This means they will buy less cars and trucks, less goods and services in the following months. The current unemployment level is 9.4%. The only thing the report said was that the rate of loss of jobs has declined. That really means nothing. As the percentage grows, there are less and less jobs to lose so the percentage will continue to drop. The unemployment by mid August will be above 10%. I would predict that if it hits 12% the government will be forced to raid all 401k’s to bolster the social security funds to maintain benefits to recipients. The talk about taking the 401K money has started. More designs are being drawn up to gain control of more financial markets.

What has happened is not that complicated. We have come to the end of a cycle. The computer age, the age we are in, grew for years and bolstered our economy. As the factories became more efficient and the market began to age we reached a plateau. We had 9/11 and then the war in Iraq. The entire time we had a press that disliked Bush. So the press talked the economy down as well as all of the democrat politicians. Since most are liberal, they have wanted us to fall. The problem is, we are a keystone species. Our economy drives the economies of China who some see as a major player with the posibility of over taking the US in economy. However, with the decline in the US economy we see a corresponding and larger decrease in the Chinese economy. Amazingly enough, the talking heads beleive that the amount of government control in China will actually help their economy and enable them to improve the economy faster. Is it any wonder that these same talking heads want more control here?

I beleive we need to start looking at new technologies and industries to rescue the economy. Start investing in upcoming industries such as robotics and bio-science. We have not seen the jump in biological science that we will see. The increase in drugs and medicines is exponential. Also look for jumps in technology that hooks humans to computers. The thing not to do is beleive we can have a return to where we were. I am not saying it won’t be as good. Of course it will. As a matter of fact it will be significantly better by all measures. But the government is lying about slowing the job loss and regaining jobs. This is a change in our economy. It is an opening for a new technology to emerge and a push to leave things behind. We are having this dip because we are in the lull between era’s. The government can’t spend our way out of it. We can invest and grow our way out of it but not by old industries and ideas. Look ahead, the economy of the old era is in decline.

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The Economy Will Sink Even Further

Posted by hanson807 on June 6, 2009

The oil and coal production and use have been declining now for almost a year. Parts and use of trucking has dropped significantly in the past year. Tax revenue has dropped significantly as well. Currently it is a downward spiral. As less people are employed and factories shutter, the demand for oil and coal go down. As less people are employed there is less tax revenue and less products are purchased and then factories get shuttered.

The spiral will continue until there is no real end in site at this time. Contrary to what the government says, we are no where near the end and we have not even come close to the bottom. The government has no answer when asked what will make the economy stronger.

We are on the verge of two possible revolutions that could bring us out of the depression we are in currently. I should first premise this with a discussion of the last two severe economic situations we were in. The great depression ended after WW II. But not because of WW II. It ended because we started an entire new industry. The mass production of kitchen and household appliances. It created millions of new jobs around the world making stoves, washing machines and refrigerators. Although refrigerators were created just after the first world war, production didn’t really ramp up until after the second world war. The US was broke after WW II. The war left an immense debt. Manufacturing however had some major improvements and the boom in manufacturing got us out of debt. In 1980 IBM released the IBM PC. This innovation was the start of the computer revolution. Sales and advances brought us out of the recession. For those that argue Reagan did, sorry he didn’t. He was a good president and lowering taxes as well as standing up to tyranny were good things to do, the computer age came in 1980 and that is why the economy boomed. Let me clarify why it boomed. Millions of jobs were created. Both making computers and programming them. Secondary markets on the computers themselves drove an immense amount of wealth as well. There was E-Bay and day trading. None of these jobs was a replacement of another industry. It was just a brand new industry with millions of jobs. As sales picked up, capital picked up and we were off and running.

What will get us out of this economic slide will be a new industry. The question is which one. Of course it could be two industries but I don’t know I am only making an educated prediction based on information I read. I think it will either be robots or some extraordinary medical advances.

In the Iraq war, when we started we had a few predator drones. Some considered them a waste. But we will consider them part of the flat earth society. Currently we have more than 15,000 drones and robots deployed in Iraq. Some are for ordinance disposal and some for actually patrolling the border. Well one has to ask, how about moving irrigation pipe in the field or picking tomatoes? I believe this will also alleviate the illegal alien issue as well. I think that the next big car manufacturer will be the one that builds a car without a single human hand. No cost or overhead of employees. Also consider the textile industry and what that will mean. More done by robots at home and less imports. Localized manufacturing because of robots. What will we export? Almost everything. Our imports will be natural resources for production. Our schools loaded with robot engineers and boom will rush on.

The second great advance will be medical. This is the only one that the government can crush before it gets going. Currently there have been advances in growing sheep and pigs without an immune system. Also advances in growing organs in these animals. So organ replacement is coming. This will be a huge industry and will require biomedical researchers as well as animal care facilities capable of handling the animals without immune systems. Secondly, the animals will only be used for a short time. Possibly 5 to 6 years before the researchers figure out how to regulate all the growth factors so that the animal is not necessary. Now the problem is, the government can crush this research. Some of this research is being done in Japan right now. The Japanese people have religious issues with organ transplant so they need an alternative to getting an organ from a human. Innovation is turning to these animals. Animal rights activists coupled with liberal left will use it as a wedge issue and get it out lawed. This will slow the progress immensely.

So currently we are sinking. When this liberal congress and senate pass health care regulation the economy will take a nose dive that no one has ever witnessed before. After several years we will through off the yoke of government control and a new 20 year era of growth will come because of robot development and biomedical research.

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