Sunday, July 08, 2012

Mexico for Republicans

Much have been made of the SCOTUS judgement on the POTUS' Healthcare Law, and its impact on the "American Way of Life" by the right wingers. Of course Rush is threatening to move to Canada (that has more or less a socialist healthcare system) and many have much more options like Costa Rica, Mexico, Somalia (with absolutely no government control) and would I say my dear Nigeria where life expectancy averages 44 years, as opposed to nearly double that in the USA?

Speaking about Mexico, I do truly believe that the Mexican experience; a country that have been around about much the same time as USA..with somewhat parallel history, but a totally different foundation and national philosophy, is a lesson on the superiority of the American ideals of can-do, rule of law and above all building the middle class as a bulwark of the economy. Mexico is a right wing paradise, with the 12th largest economy in the world (the richest man in the world lives there) and low regulation- one should expect the heavenly results promised by NeoCons. But nay, you get poverty, great income disparity and crime!

People often underestimate the role social programs like social security, medicare, unemployment insurance etc play in the entrepreneurship eco-system of United states. Often times, entrepreneurs take risk because at least they know even if they fail they won't die in penury; that when they get old they will get taken care of and that last 99 weeks of unemployment check could build their next business dream. Adding healthcare to this roll, only ensures that entrepreneurs (many whom I interact with,and who don't carry any health insurance because they can't afford it while building their dreams) will only make this ecosystem better. They are the ones that create jobs not the top 1% that sock money away in Cayman Islands and Bermuda.

Much have been made about socialism, government control and quality of care with concerns of opening up the healthcare system to the 30 million (10% of population) that don't have it. But fact remains that short of requirements that health insurance company have minimum level of payouts (85%), the Affordable care act is the closest the right wing will get to market based reform that covers most people without government control. What is not to like about no Public Option, Mandates (personal responsibility) and state operated exchanges? All these policy choices were suggested by Republicans against the Clinton Era Universal Health Coverage, and now upon adoption by the President it suddenly becomes socialism? Hypocrisy!

We ignore the link between lowering risk, improving middle class incomes and consumption on economic growth at our own peril. The Republican philosophy of make life easy for the rich and it trickles down to the rest of the economy flies on the face of consumers being the mainstay of an economy. I agree with Nick Hanauer that "giving business people credit for job creation, is like giving squirrels credit for evolution". Business people invest to change their society, be independent, of course make money but not just for that. No one invests because they will pay low taxes, because you get taxed only when you make money. People invest because there is a market for their product, and they believe they can make healthy return on that investment pre-tax! That is why increasingly reducing taxes, while lowering incomes because of lack of investments in the broad economy as the GOP prescribes is just dumb economic policy! Hey, how is austerity working in Europe?

Just Reading: Mastering the VC Game: A Venture Capital Insider reveals How to Get from Start-Up to IPO on your own terms by Jeff Bussgang is an exciting page to page read for any start-up type, intending to take the unpaved road to IPO glory. In the end, patience- luck- and intuition is what is required toe survive this game. Next Up: The Money Culture by Michael Lewis and Hopefully catch up on the perennial but Voluminous Master of the Senate on LBJ. It is shaping up to being a busy reading season. Bunch of periodicals to catch up on as well.


this is