Monday, October 16, 2017

PRESIDENT ELECT TRUMP'S DISTORTED VIEW ON THE DRUG INDUSTRY..(ORIGINALLY PUBLISHED 1/17/17).

Total national health expenditures are reported to run about 3 1/2 trillion dollars.  Total drug expenditures are reported to run about 385 billion dollars.

If the cost of drugs could be reduced 100 billion dollars, the drug industry would be forced to close down because of huge losses.

HEALTH CARE EXPENDITURES WOULD DROP FROM 3 1/2 TRILLION TO 3.4 TRILLION.  OTHER LABOR COSTS WOULD LIKELY RISE OVER 100 BILLION AND HEALTH CARE COSTS WOULD NOT GO DOWN AT ALL.

THE FLOW OF NEW DRUGS WOULD STOP AND THE ABSURDITY OF OUR POLITICS WOULD HAVE CREATED A MEDICAL DISASTER.


TRUMP - WE WOULD ALL BE DEAD WITHOUT DRUGS...ORIGINALLY PUBLISHED 6/4/12

Three major drug companies spent $100 billion dollars on Research and devleopment in the last five years.

Three major generic drug companies spent under $10 billion on research and development in the last five years.

Since important new drugs are almost impossible to find the major drug companies are likely to find fewer new drugs over the next ten years as their cash flow will decline.

Since generic companies don't do much research or find too many new drugs, the net result will be less drugs, more illness and consequently, more expense.

Unless we get very lucky and the drug companies have a few more breakthroughs.

Furthermore, there is a strong likelihood of declining morale and a significant weakening of the talent who are able to find new drugs.

DRUGS....MORE NOT LESS....(ORIGINALLY PUBLISHED 12/16)

Doctors and drugs are a small percentage of medical spending.  If it wasn't for the drug industry, we would all be dying horrible deaths.  There wouldn't be a need for hospitals because they would not be able to treat even simple infections.  Almost all the money spent in the medical industry is spent on administrators, technicians, floor sweepers, exterminators, etc.

The Senators and everyone else who attack drug prices instead of providing incentive for more and more drug development, are fools.

When one of them gets a significant disease as for sure some of them will they will understand that they ought to get out of government.  

Wednesday, October 11, 2017

HILLARY/SANDER'S HERO - SAUL ALINSKY...(ORIGINALLY PUBLISHED 6/13/12)



Saul Alinsky pontificated in his Rules for Radicals that to destroy the American system that a realistic radical is completely unconcerned about the verification of facts and that they are only interested in their agenda. He states that the purpose of radicals is to sew discontent and to seek to create an environment so they can influence the generally ignorant population to support political goals that would otherwise be unsupportable in the face of the facts.

AMAZON..MACYS..KOHLS..HOW WILL IT PLAY OUT...(ORIG. PUBLISHED APRIL 2011 AND REPLUBLISHED OCTOBER 2016)

Im having difficulty putting into words what it is I am currently thinking.  Several years ago we wrote about the Apple IPad and the implication for sales of personal computers.  The Ipad seemed to be what is called a disruptor but its impact on overall economic activity was and is minimal.

 If there is going to be a serious economic decline,  there is one main place to look in my opinion.  That is Amazon.  We all use Amazon. Its getting bigger and bigger and is run by an obvious genius.  He is on the fast path to destroy "all" retail businesses which account for a large portion of our jobs and GDP.

Amazon is becoming so huge that it is on the road to becoming every manufacturers largest customer. The manufacturers, because of this phenomenon,have to do business with Amazon.  Amazon  in turn is putting pressure on the sellers of goods to provide products at a discounted price.  This will eventually lead producers to cut back on their costs which will lead to job loss and deflation.

Amazon, which was already selling most anything you could want is now branching into auto parts, office supplies, groceries, television shows, fast food delivery, etc.  Who knows where this will all lead.  Unfortunately it appears from the weakness in  the retail industry, not to a good place.

Point made!




 

Shepard Osherow. All Rights Reserved