The American economy is damaged in general. The real unemployment rate (as per shadowstats) is well into the two digits, not the phony 5% touted by the Government. The real inflation rate’s about 5-6%, not the bogus baseline of 1%-2% that the Government offers. The economy has been kept afloat by several incidentals, not the least of which is the boom of oil, and the collapse of oil prices, by fractional extraction.

Look back at the August 31 authenticmedicine post, friends. The only way that the middle class is staying afloat, is by the DEFLATIONARY trend of goods such as clothing, that have dropped in price over the last half-dozen years. Look at the graph.

Stuff that can be deflated by shipping its production offshore to Indonesia, like clothing, has help push down the real price of things. Wal-Mart business methods have also cut down on the real price of things. Because Wal-Mart owns a huge captive market, they dictate the prices they will pay the producers – and they’re not generous. If someone can make lawn furniture for five cents cheaper, you’re fired from the supply business, pal.
Some businesses can be crushed into efficiency by the Wal-Mart technique; and some can’t. -Strangling the networks for HMO’s is the same gig Wal-Mart offers its producers. Take it or leave it. I give it about three years when we start extensively “offshoring” surgeries to Mexico and the Caribbean. Let’m compete on a global market! Besides, the American physician’s going the way of the Zenith Tube Radio. The other cost component on the graph is the exploding bureaucracy of medicine – that’s got to account for some of the 3-5% annual rise in healthcare.

Think of it. If REAL inflation’s siphoning off 5% per year, and healthcare costs are rolling up slower than that, at 3.5%, AND the bureaucracy’s expanding, who’s making up for the balance sheet? I’m seeing about a 5% or more DEFLATION of expendables like salaries.

There was a reason Grandpa dreaded deflation. In the Great Depression, wages and prices dropped. But as the wages go down, demand goes down, and the amount of dollars available to circulate in the economy goes down. That’s why the plan used to be to avoid economic deflation. Since about 2000, the Government’s been speedily burying the deflation under a rug, and blaming it ALL of the healthcare sector. Stop medical greed! Billions spent! Yes, of course. -But the money’s not under the doctors’ mattresses. Until we “offshore” medicine, we’re in a pickle.

Military potentates from horrible festering African totalitarian states used to send their relatives to the United States for medical care. That didn’t speak well of the culture and economy of their horrid little fiefdom. And in five years, we’ll be sending people to Mexico and the Caribbean for medical care. What’s that say about us?

Warning – sometimes I poach my comments off one website, and throw them here.  I’m not plagiarizing myself.