No matter what the faults are that people find in the United States (and there are many) it is a fact that it is still the foremost destination of people all over the world. Even in countries that are traditionally well off (like the European and the Middle Eastern rich kingdoms) many of them still wants to come to the United States if given a chance. Even in this economic climate that we are in, if you ask a person (educated or not) from a developing country where he or she wants to migrate, the answer will be United States and then if they are unable to get visas here then the next options are other less restrictive countries. What is that that have made this country such a magnet for immigrants all over the world?
Maybe it is the movies and the culture that shows that even a person with a lower economic back ground can make it here. Despite all the history of the United States (regarding the Native Indians and African Americans and also Chinese) no other country in the world welcomes as many immigrants as the United States does without regard to any discrimination and gives it an opportunity to excel if they can work hard. It tries to integrate them but also lets them celebrate their own ethnicities and nationalities without being frown upon them. It is the welcoming nature of this country that keeps on attracting people here even at the cost of their lives.
Saturday, September 11, 2010
Monday, September 6, 2010
Is the Health Care Sustainable?
During the debate about health care, a constant theme was about the cost of the bill. Ultimately the bill was passed with much fan fare but without debating how the long term health care costs will be borne out. The United state along with other western countries prides themselves on their health care but is it sustainable in the future without being funded by public money more. Although people don’t want to talk about it but the health care is becoming expensive every day making it the number one issue in the United States. People are clamoring more for the health care making it impossible to cut the health care bill in the future.
A substantial portion of our federal budget is devoted to health care and unless something drastic is done to contain the cost of health care, we won’t be able to sustain it without sacrificing other areas of the budget. An honest debate by politicians should be a start, although it will be almost impossible for the people to elect that politician who cuts their medical benefits but leaving this problem to the next politician will only make it worse. The health care costs are getting out of control and unless everybody starts paying more for it and reduce its expenditure we are in for a time of shock treatment.
A substantial portion of our federal budget is devoted to health care and unless something drastic is done to contain the cost of health care, we won’t be able to sustain it without sacrificing other areas of the budget. An honest debate by politicians should be a start, although it will be almost impossible for the people to elect that politician who cuts their medical benefits but leaving this problem to the next politician will only make it worse. The health care costs are getting out of control and unless everybody starts paying more for it and reduce its expenditure we are in for a time of shock treatment.
The Coming Pension Nightmare
I have been writing about the pension the public sector employees are getting and how it is going to lead us all in trouble. Although since the public sector employees earn less than the private sector employees, they are entitled to their pension but when there should be line drawn about how much pension these employees should get. States that are in financial trouble are skipping pension payments into the pension funds each year just to balance their budget.
Even with skipping pension payments, the states are having trouble balancing their budget but in their infinite wisdom, they have been giving employees raises that ultimately raise their pensions. This cannot go on and this Pension nightmare will have to come to an end. If the private sector employees even with their higher pay are having pension plans replaced by 401K and other private retirement plans and increasing paying their share of the health insurance. It is time now to replace the pension plan in the public sector also because the Pension plans are already in deficit all across America so there is no point keeping it growing. It should be frozen after fulfilling their present obligations and the funds transferred to a privately managed 401K and other private plans if we are to reduce our states deficit and not burden our future generations (which are already burdened by student loans and family obligations and fewer job prospects).
Even with skipping pension payments, the states are having trouble balancing their budget but in their infinite wisdom, they have been giving employees raises that ultimately raise their pensions. This cannot go on and this Pension nightmare will have to come to an end. If the private sector employees even with their higher pay are having pension plans replaced by 401K and other private retirement plans and increasing paying their share of the health insurance. It is time now to replace the pension plan in the public sector also because the Pension plans are already in deficit all across America so there is no point keeping it growing. It should be frozen after fulfilling their present obligations and the funds transferred to a privately managed 401K and other private plans if we are to reduce our states deficit and not burden our future generations (which are already burdened by student loans and family obligations and fewer job prospects).
The Always Unhappy Economists
The Economists are always unhappy with the human behavior. Although they assume that the humans act rationally in financial matters but then when something goes wrong with that rationality they start to question that rational human being. Consider for example that during the time of pre-recession, they were lamenting that the people are not saving enough and indeed the saving at one time went to the negative. Now that some sort of normal behavior is being shown that of savings rate in excess of six percent, the economists are again complaining that this rate of savings is not conducive to the economy recovery. That people should start spending once more to help the economy.
Well they people are seeing the light (or at least they are) by trying to replenish what they have lost during this recession, a loss of home equity , reduction in the value of their 401K funds, lower stock values and a constant news about the state of the social security funds. Apart from this, they are also reading news about the state of the economy, locally and federally and they are scared about their future. Although I can understand that if people don’t spend, the companies cannot grow and hire more people but still people are scared about their jobs prospects and uncertainty about the economy so they are find it prudent to save as much as possible and until the uncertainty is somewhat removed or reduced, they will not spend.
Well they people are seeing the light (or at least they are) by trying to replenish what they have lost during this recession, a loss of home equity , reduction in the value of their 401K funds, lower stock values and a constant news about the state of the social security funds. Apart from this, they are also reading news about the state of the economy, locally and federally and they are scared about their future. Although I can understand that if people don’t spend, the companies cannot grow and hire more people but still people are scared about their jobs prospects and uncertainty about the economy so they are find it prudent to save as much as possible and until the uncertainty is somewhat removed or reduced, they will not spend.
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