The new economy and the supply side economy
Supply side economy is almost all government controlled spending. Most people look for military and industrial complex for supply side to pump the economy. In the past few years, due to the change of cold war to uneasy peace; the supply side economy have been reduced. Our geovernment barely supported readiness in the military and industrial complex. New spending have been slow; old contracts were reduced. The national security has been changed from established bases around the world policy to mobilization policy; where we can delivered troops and equipment to contain the problems. Most of new problems around the world are solved by political settlement and subsequent peace troops to occupy the troubled countries. Almost the same as world war II solutions in Japan and Germany, where we had peace for the last 50 years. The military and industrial complex are now forced to look at cost effectiveness of new weapons and system instead of high technology. The reason is the competition of new technology is over. New advances only spur the competition not keeping the status quo. Unless there are new superior weapons developed, we do not need new weapons to defeat them. We do not want to obsolete our own weapons if they are now effective.
On the social side of the supply side economy, we now have slight surplus in social security and medicare systems. Thanks to the new economy which provided new jobs to support increased spending in these areas. Older americans have also been enjoying better food and supply of variaty, which is the foundation of good food, good health. CPI adjustment helped older americans on social security to be able to afford good food. Therefore, the medicare provision will steadily decrease.
Medicare should be run as an insurance. Insurance companies invest their surpluses to make more money to support large claims. The efficiency of medicare payment system is now through state agencies in the tune of $500 million per year per state, which can be reduced by computer efficiencies. Today, doctors are not questioned as to the need for approval of their decision to provide certain care. In the future, claimants and hospitals may have to provide alternative doctors' opinions and competative cost from other hospitals to justify cost and effectiveness of certain care. Such actions are demanded by the new economy, where surplus hospitals and doctors have to compete for patients and medical business. On the demand side economy, the HMOs and health insurances have large overhead in terms of payments and administration cost. New computer systems will catch up with the inefficiencies. Surplus profits may induce most health care providers to look for new applicants from the medicare entitlement crowd to have a product to piggy back on basic medicare insurance. Additional CPI adjustments may make these new healthcare providers' products affordable by social security receipants. Therefore, further reduce the medicare responsibility of our government. |
