Category Archives: economy

Normal human problems are turned into medical conditions, spiking healthcare costs

By Sherry Baker, Health Sciences Editor

Mainstream medicine has a huge new growth industry underway — the “medicalization” of the human condition. That’s the conclusion of a study headed by Brandeis University sociologist Peter Conrad that was just published in the journal Social Science and Medicine. The report, the first study of its kind, documents that over the last several decades, numerous common problems — many of which are simply due to being human — have been newly defined as medical disorders that supposedly need prescription drugs and other costly treatments.

For example, menopause is a perfectly natural part of womanhood but it is now considered a “condition” complete with symptoms that physicians often believe need treatment with hormones and anti-depressants. Likewise, normal pregnancies, taking longer-than-average time to get pregnant and impotence (now known by the medical term “erectile dysfunction”) are all now seen as medical conditions that may need intense medical monitoring and treatment. And if a child fidgets in class — bingo! He or she is frequently classified as having Attention Deficit Hyperactivity Disorder (ADHD) and quickly placed on stimulant drugs like Ritalin
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Conrad and his colleagues used national data to estimate the costs of these and other common conditions — including anxiety and behavioral disorders; worries over body image; male pattern baldness; normal sadness; being overweight; difficulty in sleeping through the night and substance-related disorders. In order to document what role medicalizing these problems could be playing in escalating U.S. healthcare spending, the Brandeis research team evaluated current data showing just how much medical spending results from the diagnosing and treatment of these “conditions”.

Their findings? The researchers concluded there is a strong and undeniable trend toward a medicalization of human conditions, with a constantly increasing number of medical diagnoses and treatments for behavioral problems and what the researchers called “normal life events”.

When they analyzed payments to hospitals, pharmacies, doctors and other health care providers for medical treatments of these medicalized conditions, the researchers discovered that the costs accounted for $77.1 billion in medical spending in 2005. That amounts to almost 4 percent of the total U.S. healthcare expenditures.

“We spend more on these medicalized conditions than on cancer, heart disease, or public health,” Conrad said in a statement to the press.

Conrad added that medicalization of human problems may have several causes, including increased consumer demands for medical solutions and Big Pharma’s expanding markets for drugs. “By estimating the amount spent on medicalized human problems, we’ve raised the obvious question as to whether this spending is ‘appropriate’. The next question is whether we can more directly evaluate the appropriateness of these medical interventions and consider policies that curb the growth or even shrink the amount of spending on some medicalized conditions,” Conrad said in the press statement.

Source: Natural News, May 28, 2010.

Congressman Steve Austria on National Debt

Our nation is making history for the wrong reason as our national debt reached $13 trillion, putting each American’s share of the debt at around $42,000 and each taxpayer’s share at $118,000. This level of debt is deeply troubling and threatens the economic prosperity of our children and grandchildren. A recent Rasmussen poll found that only 21 percent of the public think that today’s children will be better off than their parents.

Today, we still have no budget; no plan to reign in this out of control spending. For the first time the House will fail to even propose a budget at a time when the American people are demanding fiscal responsibility. To pay for the massive spending initiatives that have passed this Congress, the Democrat leadership has increased our national debt ceiling twice. These actions have added to the present level of debt we find ourselves in, which continues to grow every day. To pay for the massive spending initiatives that have passed this Congress, the Democrat leadership has increased our national debt ceiling twice. These actions have added to the present level of debt we find ourselves in, which continues to grow every day.

We can address the issue of job creation without racking up trillions of dollars in stimulus bills and bailouts; that we have yet to see any significant results from. We can make health care more accessible and affordable without a $1 trillion price tag. These are important issues that need to be addressed head on. To be serious about fixing these important issues, we need to be passing fiscally responsible policy, not simply throwing money at them which only serves to create additional problems down the road.

Now is the time for Congress to address the issues facing our nation in a fiscally responsible manner. We need to show constraint, set spending guidelines, make the tough choices and eliminate wasteful programs.

It’s important that Members of Congress hear from you on these important issues. I invite you to visit America Speaking Out to make your voice heard.

New Housing Up In First Quarter of 2010

The number of new housing starts this quarter increased by 1100 percent. That is a fantastic rate, but let’s not let our exuberance blur reality. During the first quarter of 2009, the total number of new housing developments was a dismal one (1). The excitement is all about the whooping 11 permits issued for new housing.

Eleven new housing starts is a good sign.

Let’s hope the trend continues until the new starts outpace the many more residents who have left Xenia. If that happens, city officials will have a real cause for exuberance–more tax revenue and more fee-based income for the enterprise. I’m sure union employees will quit sweating about the threat to their scheduled pay raises.

Economic Trends, What Do They Mean?

By Daniel Downs

The latest economic trends report by the Federal Reserve Bank of St. Louis reveals why City of Xenia officials think they need more of taxpayer’s scarce financial resources. In 2009, the report shows a 3 percent increase in GDP, which means total revenue produces by all our work as a nation. That figure reminds me of pre-industrial era economic growth when governments and citizens lived within their means most of the time.

Coinciding with the low GDP was low industrial output reflected by a significant decline in payroll and sharp increase in unemployment. During 2009, industrial production increased by a meager 6 percent. At the same time, payroll declined by $5 million and unemployment rose from 7 percent to around 10 percent.

The loss of jobs and income resulted in the loss of homes, which in turn meant a loss of tax revenue for municipal governments including Xenia. The rise in the cost of gas that contributed to the rise of costs of food and other goods as well as services has made matters worse–not to mention Wall Street’s short, like Soros, gleefully stuffing their pockets with our GDP revenue.

Nevertheless, long term government bonds have maintained their value while short term bond rates dropped to near zero. If that is also true of municipal bonds, then local governments are still giving our tax dollars at the same or possible higher dividend rates. This means less tax revenue for actual operating costs like paying police, fire, and street maintenance personnel.

While officials also claim higher costs for goods and services require higher taxes, the report shows the total increase of good and services represented by the Consumer Price Index (CPI) to be around 2.4 percent for 2009. That is quit low. The last quarter of 2008, inflation dipped to minus 2.5 percent. This could be interpreted as rendering overall inflation as near zero. As such, local governments use of higher costs to justify raising taxes does not appear to be warranted.

The best course of action by both government and taxpayers is one of fiscal restraint. Governments should decrease spending and tighten their budgetary belts. Taxpayers should restrain themselves from giving government tax increases until the economic trends show declines in unemployment to less than 6 percent, consistent payroll increases, and increased production figures i.e., industrial production, GDP, GDI, and the like.

State (& Local) Tax Revenue Decline : A Perspective

By Daniel Downs

A new state revenue report by the Tax Foundation came our yesterday. The report entitled “State Revenue Changes from 2008 to 2009” reveals Ohio tax revenues declined 8.7 percent the period assessed. Ohio ranked 28 which amounted to 2/10 of a percent below the national average of 8.9 percent.

Alaska suffered the highest percent of revenue decline at 51.9 percent. The next highest was Arizona at 19.7 percent, followed by California at 15 percent, and then Idaho at 14.1 percent. The state with the highest percent of tax revenue gain was Wyoming at 13.9 percent, followed by North Dakota at 4.3 percent, and then by Oregon at 1.9 percent.

The report also broke out the tax revenue losses by tax category i.e., property tax, individual income tax, corporate income tax, general sales tax, and selective other taxes. Ohio didn’t report property taxes collected. However, the report did show that the greatest loss of tax revenue in Ohio originated from corporate income declines. The percent of corporate income tax revenue decline was 36.6 percent, whereas individual income tax revenue decline only 16.8 percent. Sales tax revenue declined a mere 7.1 percent.

The high level of corporate income tax loss is due to the closing of both large and small businesses throughout the Ohio as a result of the great recession. Both greedy investors and power-mongering politicians must be thanked for the losses.

As mentioned in previous posts, the loss of tax revenues by Ohio government came after consistent increases in tax revenue and increased spending. The report brings this out very clearly in its historical statistics. When those national statistics are added up, the total percent of tax revenue increase was 19.7 percent, that is the total average increase for the nation from 2000 through 2007. The total decline from 2008 through 2009 was 9.2 percent.

The last paragraph of the report puts these above figures in proper perspective:

“Although state tax revenue decreased significantly during fiscal year 2009, the decrease is almost exactly matched by earlier years of major increases. Over the last decade, adjusting for inflation, state tax revenues have increased by 6.1 percent. When controlling for population, tax revenues are down about one percent.”

Like Xenia, many local communities are getting less money from the State because of the decline in tax revenues collected. As the report indicates, the real loss is only about 1 percent. That is why during times such as these taxpayers should not allow government officials to raise taxes to cover short-term fiscal problems is wrong. it is simply wrong to fix short-term financial problems with permanent taxes. The right thing is to assure that public officials practice fiscal and budgetary restraint. If necessary, they can always dip into the million dollar plus reserve fund until the economy actually recovers.

Austria on Sustainable Economic Recovery

Right now is a critical time in our nation’s history. In March, unemployment in Ohio reached nearly 11 percent, a figure not seen in decades. Even in the wake of a nearly $800 billion stimulus bill, the unemployment rate continues to climb. Yet despite the continued financial pressure on small businesses and families, many lawmakers in Washington continue to promote costly, unsustainable policies, in an effort to spend our way out of this crisis.

Last year, the President released a budget that would amount to more accumulated debt than all the presidents from George Washington to George W. Bush combined. And this year’s deficit is anticipated to reach $1.5 trillion. Thus far, this year hasn’t been much different. The recently passed health care reform law will amount to $311 billion in additional spending on health care than would have otherwise been spent if no law existed, according to a new report released by the Centers for Medicare and Medicaid Services (CMS). And currently, the Senate is moving forward on a financial regulatory reform bill, aimed to reign in excesses on Wall Street. While I agree we need more oversight and transparency of the markets, I have concerns that the regulations included in the bill could further restrict credit for small businesses, working families and those who need it most.

Bringing our nation back on a path of economic recovery and sustainable growth, demands limited government and more focus on investment coming from the private sector. It means putting tax dollars back into the hands of the American people who know best how to invest them. It means cutting back on the wasteful government spending that is driving up our nation’s debt to nearly $13 trillion and jeopardizing the livelihoods of future generations. It means giving businesses and industry the right kind of incentives so as to generate certainty in the market place and promote long-term job creation.

These decisions are not easy, but it is clear that the current spending behavior we have witnessed in Washington must end. Be assured that I will continue to work with my colleagues in a bipartisan manner to develop sound solutions to meet the challenges we face.

Vote Yes On Issue 1?

A businessman from Central America responding to a post made a very enlightening observation about Ohio. He said Ohio is a like a third world country lacking adequate development. Almost all media outlets, business organizations, universities, as well as the mother, brother and sister of nearly everyone else, seems to agree; they are all promoting the renewal of the not-yet-ended Third Frontier funding for high tech development.

So, why not follow the crowd. Well, because crowds generally chant whatever smooth talking speakers claim. Like other dumb animals, we like sheep are easily led astray–also called the herd mentality.

It cannot be denied that 48,000 new jobs have been created as a result of the Third Frontier economic stimulus fund. Ohio taxpayer gave the state $500 million to help develop high tech industries and job. Each job created cost taxpayers over $10,400. SRI Intl. research claims it also produced a positive economic impact of $6.6 billion. (A must read is an article by Tom Breckenridge on Cleveland.com)

If we forget that politicians and big business sold off our low tech industrial job to China and other nations, we also forgot the much how much greater the Third Frontier has actually cost. And, did most Ohioans really benefit from the sale? I doubt it.

Yes, Third Frontier is a boondoggle for universities, big energy, drug companies, General Electric, and some new enterprising tech companies. They will create new jobs while eliminating old ones. The costs are likely higher for many individuals than politicians and big business concerns care to acknowledge. For example, many young Americans will end up having to compete with foreigners with Green Cards.

Yet, in spite of the young who will benefit from those new jobs, if foreigners are need to fill positions, those jobs will in the end not be such great paying jobs. Just asks those experienced in computer technologies.

Trusting the hype media, business leaders, and politicians is like believing FDR’s welfare program would be a temporary remedy for those affected by World War II. You can be certain that Third Frontier welfare for high tech corporations will be as temporary.

Who pays for corporate welfare? All of the middle class who supposedly benefit from all of the great new jobs. Remember, low-tech Wal-Mart and the factory farm.

Carrie Mihalick wrote an article in which she traces the fascist or progressive history of the Third Frontier movement across the world and to Ohio. Her research facts reminds of the Progressive results of Obama and progressive Congressional Democrats economic policy. Third Frontier may seem more discrete than Obama and Company in how it will eventually run tech business in partnership with big business but I doubt it. (Her article is another must read.

Allowing the Third Frontier to continue will the Ohio Constitution’s 5% cap on state debt service to be violated. (See the rest of the argument by a number previous Ohio legislators by going here.)

A better plan is to give venture capitalists bigger tax breaks for investing to create new high tech industries and jobs. Let big corporation reinvest in their own high tech developments. Make politicians stick to policies and funding initiatives that actually do benefit all citizens rather than the chosen few.

America does not have a shortage of doctors, it has an excess of disease

By by Mike Adams, Editor of NaturalNews.com

Now that health reform relying on monopolized pharmaceutical medicine has become the law of the land across America, the mainstream media is reporting on a sudden shortage of doctors. The nearly one million doctors who already treat a sick, diseased population is no longer enough, it seems, and medical schools are ramping up to churn out more doctors to treat yet more disease. There are never enough doctors to go around when everybody’s sick, it seems…

What we’re witnessing here is a massive expansion of the sick-care industry which already swallows 20 percent of the U.S. economy. Over the next few years, that percentage will rise to 25 percent, then 30 percent, and this financial sinkhole called “mainstream medicine” may even hit one-third of the entire national economy.

That puts the U.S. in a dire financial situation. If a third of the economic productivity is being spent on sickness and disease, and another third (or so) is being spent on war and imperialism, and another third is spent on debt interest and social security, then where do you get the money to actually build roads and schools, pay government employees or administer the business of government?

The answer, of course, is that you simply print more money and keep on spending — a sure path to currency hyperinflation.

But that’s another story. The topic of today is how to solve the doctor shortage. And the answer to that is quite simple: Unleash the power of nutrition to prevent and reverse disease.

Nutrition ends the doctor shortage
We already know that vitamin D, all by itself, can prevent nearly 4 out of 5 cancers (http://www.naturalnews.com/021892.html). It also helps prevent heart disease, diabetes, depression, seasonal flu and kidney disease. Distribute free vitamin D supplements across the entire population and you solve the doctor shortage problem in one year as the public gets healthier and reduces doctor visits.

It’s a simple, cost-effective solution that any intelligent nation would embrace without a second thought: Invest a few pennies in the health of the population and save yourself many dollars in reduced health care costs. Regular vitamin D supplementation has no negative side effects and requires no prescriptions, no injections and no visits to the doctor. What’s not to like about that?

Except the sick care industry doesn’t like it at all. Drug companies, hospitals, conventional doctors, med schools, medical journals and now even the mainstream media all generate extreme profits from the ongoing business of sickness and disease. Vitamin D would disrupt their profit agenda and send people home healthy and well instead of bringing them back into the hospital sick and diseased.

America, you see, does not have a shortage of doctors… it has an excess of disease. And that’s an excess that the sick-care system seems determined to continue.

Rep. Jarrod Martin Sends Letter To Sen. Voinovich and Brown Opposing Cap-and-Trade

Ohio State Representative Jarrod Martin (R-Beavercreek) was joined by his fellow caucus members in signing and delivering letters to U.S. Senators George V. Voinovich and Sherrod Brown, regarding deep concern of the cap and trade and other impairing regulations.

“I fully support efforts to make the United States more energy independent and to protect the environment. However, it is doubtful these proposals would have any impact and would punish Ohio consumers with increased energy costs,” Martin said. “Our economy continues to struggle. We will not be helping anyone by putting into place policies that would drive more businesses out of Ohio and increase energy costs for every consumer.”

In the letters, House Republicans outlined growing concerns of the economic consequences of legislative or administrative efforts to implement cap and trade policies or to regulate carbon dioxide and other greenhouse gases as pollutants. Moreover, concerns in the letter also expressed that Ohio is so reliant on these energy producers that these increased costs are really another tax in disguise that will impact all Ohioans. The implementation of these policies would be extremely damaging to Ohio’s long-term success and budget sustainability.

House Republicans hope to encourage Senators Voinovich and Brown to oppose cap and trade and other proposed greenhouse gas regulations and assert that as the state budget continues to face ongoing revenue shortfalls, establishing new taxes on traditional energy sources as a way to subsidize will lead to a steeper economic downfall.

To read the letter, go here.

Rep. Steve Austria’s Position on the Financial Regulatory Reform Bill

By Steve Austria

This week, the Senate may consider Senator Chris Dodd’s (D-CT) financial regulatory reform legislation. The House of Representatives passed a financial regulatory reform bill last fall. The legislation proposed by Senator Dodd would essentially overhaul our financial system and place new, sweeping regulations on the banks.

The bill includes a $50 billion fund for bailing out firms Washington considers “too big to fail”, which will be paid for by levies on banks. It would also create an independent regulator housed at the Federal Reserve, which would essentially codify the bailouts used by the Fed to directly infuse money into firms like Bear Stearns, AIG, Fannie Mae and Freddie Mac. Concerns have arisen that this mechanism may simply add another layer of federal bureaucracy, allowing Washington to pick winners and losers in the financial industry.
By Rep. Steve Austria

While I agree that there needs to be more transparency and oversight within the financial industry and protections for consumers, more government involvement that only puts the American taxpayer on the line is not the only answer. Furthermore, giving more power to the Federal Reserve, a non-elected entity, to distribute funds to various firms, deviates away from its original mission, which is to provide oversight and guidance of monetary policy. Rather than adding to a government backstop, we need reform that strengthens consumer protections, helps protect the solvency of existing firms, and brings consistency to the regulatory structure.

Source: Email newsletter, April 23, 2010.