Wednesday, January 26, 2011

How does a non-tangible asset bubble burst?

The ERI Economic Research Institute, Inc. released this past years largest salary increases by profession. We all know that health care is expensive and is continuing to be more so but is it any wonder why when of the top 20 largest increases 70% of them (14) relate to the medical profession? Not so surprising 3 others relate to academics (fortunately 1 was a non-magement role). I can understand these increases in the medical field to a degree since they are concerned the new health care bill will eventually cap their salaries at some point (much like how insurance companies are franticlly trying to raise premiums). If the caps do hold (which they never do) then I guess it wouldn't be so bad but its unfortunate that we narrowly focus only on the money instead of the reasons why costs are so high. Sure doctors are highly educated and are worthy of their wages but many regulations exist that force up healthcare costs. Release the AMA and other governing bodies abality to control how many doctors are allowed into the field, end the war on drugs and drasticlly drop the price of drugs and peoples need to get a perscription are just two examples of how the government could restore freedom and lower costs and flip side is people will then have to be resposible of their new found freedom(s).

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