If you put the Federal Government in charge of the Sahara Desert, in five years you would have a shortage

of sand--

Milton Friedman

Medicine and the Vampire Economy

Lee D. Hieb, MD
Orthopaedic and Spinal Surgeon Lake City, Iowa

 Dont prey on each other

Dont prey on the dead

Prey on the living (productive)

Only two possible outcomes:

??

Why is America the Most Prosperous Nation on Earth?

Why is America Prosperous?

Democracy? Natural Resources? Low population density? Work Ethic?

Why is America Prosperous?

History of Economic Freedom Rule of Law Respect for Private Property

America

American Decline as Disease

Before Treatment:

Correctly name Diagnosis Catalog and analyze the Symptoms

Examine the Signs

Symptoms

Decreased economic development Under/un-employment Escalating prices Diminishing standard of living Diminishing middle class

Medical Symptoms

Shortages of physicians Shortages of necessities Uncertainty of investment Escalating overhead Price Controls Fear of Prosecution

Economic Signs

Government administers a capitalist system with an immense bureaucracy

Criminalization of violators

150,000 pages Medicare Regs

2000 pages on billing RAC Auditors

Tax Code

1913 400 pages 2011 82,000 pages

Top Rule Producing Agencies 11

Treasury Commerce Interior EPA Agriculture

Rules (completed) > 100 Mil impact

H and HS EPA Treasury Energy DOE Defense

23 4 3 3 2 0

11 Pages of laws

9 Pages= Disposal CFL

Economic Sign

Government sustains economic life through spending and borrowing

Private vs Government Spending 1920 to 2011

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Pre New Deal 1947 2011

gov private

Economic Sign

Producers are organized into cartels some of which are favored over others by government policy (syndicalism)

Economic Sign

Profit is held privately, but loss is public.

Economic Sign

The government acknowledges no restraint on its powers.

Words have no meaning Money from thin air

Property is no longer private

Economic Sign

General Belief: Only the State can protect the individual from unscrupulous businessmen.

Economic Sign

General belief: Prosperity will follow a cultural and spiritual awakening.

What is the Diagnosis?

F. A. Hayek, Nobel Laureate Economist William Welk, Harvard Economist Thomas Dilorenzo, PhD. Economist, Mises Institute

Public/Private Partnership: Germany, Italy and Spain

Vast regulations Violations of property rights Inflation Price controls Taxes Criminalization of business activities

F.A. Hayek: Road to Serfdom

Germany 1928: 55% Gov controlled, 10% Military Spending US today, 45% Gov and 21% budget military

rviving the Vampire (Fascist) Economy??

Business Organization

Sales Manager Purchasing Agent

Business Organization
Sales Manager Purchasing Agent

Public Relations Legal Government Interface

 Hire a Contact Man

Former Pols on corporate boards, etc.

Companies Join for Safety

Small companies cant compete legally--form external legal arm. Band together to lobby and appease government

All for the Volk:

Camouflage private interest as community benefit

Conrad Hilton went Green

Economy of Coercion

Forced investments

Incentives for unwanted investments

Vampire Government

Increasing bureaucracy meant increased functionaries Became a legally privileged group.

Cowering Businessman
Live in fear of being prosecuted Cannot keep track of the laws Fear new extortion Fear new decree that will bankrupt him

Courageous Businessman

Not for investment risk, but for circumventing regs

When all else fails---

Give up and join the government.

(Adopting another fascist characteristic: Pragmatism over Principle.)

Outcome--at First

Government safeguarded big business and avoided bankruptcies. Companies who couldnt compete funded party members for favors.

 Gave lots of money to party Lost all economic freedom

Principiis obsta. Finem respice. Resist the beginnings. Consider the end.

To live in this process is

absolutely not to be able to notice itone no more saw it developing day to day than a farmer in his field sees the corn growing. One day it is over his head.--Milton
Mayer, They Thought They Were Free

Progressive Economic/ Social Oppresssion

Best Outcome

1954 Franco woke up to Free Market reforms

Conclusions: We are at tipping pt.

Without general economic reform we cannot maintain quality medical care Economic improvement means decreasing government

Dont surrender a rightmake them take it.

Practical Note

Stay lean, mean, able to turn on a dime Produce necessities, not pain palliatives Prepare to downsize

Pragmatism With Principle

Hope for the Future