Economic Meltdown

After 12 years of losing credit bubble finally burst in the housing market, now is the time to fix what was damaged and that the U.S. economy. President Obama's first move was to bail out Wall Street, which was an idea that began with his former predecessor, George W. Bush. Further, President Obama has decided to create a package of measures known as the American Recovery and Reinvestment Act, is estimated at about $ 787 billion, which was later increased to 840 billion dollars to be more inline with what the president wanted to spend for 2012.

The package of incentives covered a wide range of consumer, such as giving perks to first time home owners, tax breaks and infrastructure such as roads and schools, Medicaid regulations, urban development, energy costs, heath information technology, support for security and support for people working outside and even things like broadband connections for internet!

There were a lot of promise has been made about how quickly taxpayers money (stimulus package) would be converted to work and save existing jobs by saving America from what was known as the Great Depression. Here is a breakdown of the results of these promises stimulus money can be done in accordance with government's own statistics.

In California, 34.6 billion dollars was awarded, 22 billion had so far resulted in 20.038 job gains. In Washington, has received 8.4 billion, 6.3 billion was made up to now resulted in a 5.258 job gains. In New York, 17 billion dollars was awarded, got 12.7 so far resulted in 10 620 job gains. In Texas, 16.6 billion dollars was awarded, 13.3 billion had so far resulted in 11.800 job gains. In Florida, received 11 billion dollars, 8.3 billion was made up to now resulted in a 9.455 job gains. In Illinois, $ 11.9 billion won, 7.8 billion was given so far resulted in 4.856 jobs.

A year later, because the stimulus package was passed in 2010, the Federal Reserve was disappointed with the economic recovery by describing it as "disappointingly slow." Thus, the Fed decided to produce 600 billion dollars from thin air in order to throw into the financial system to keep interest rates low and making it easier for companies to loan money.

One of the controversial moves by trying to restore the economy, but is more chance of fixing the economy or health care reform is currently known as Obamacare. It has promised to change government run health care system, taxpayers would save money while expanding coverage. When health care reform law was first enacted, the Mayo Clinic who lost $ 840 million in 2009, treating Medicare patients chose not to admit more if Medicare patients to pay cash, so that the new health reform denies seniors the best medical care in the world for cancer .

And that only scratches the surface, there are other things such as over 12 million who rely on Medicare Advantage, which allows them to look for free market health care, without aggravating the gap in coverage. But under the new law set up by President Obama, who was a political move, and not until after the presidential elections with the help of other law to obtain an additional 8.3 billion dollars to the program going. Then cuts to Medicare Advantage fee will apply. As a result, 12 million seniors will eventually be pushed back into the government run program.

Commissioners are in the Medicare program has recently released its report and there are estimated to employer retiree drug plans will fall from 6.8 million in 2010 to just 800000-2016, because the massive amount of new taxes employers would have to pay for new health-care the law!

What does this all mean? At the current consumption, the United States on the way to go bankrupt! When former President George W. Bush left office, the annual deficit amounted to an annual 400 billion dollars a year, but during the tenure of President Obama's spending rose to 1.3 billion years ago.

Rights such as social security and Medicare projected to go broke before it was expected. Baby boomers who helped drive the economy to new highs back in the 90's will be retiring in massive mass in the future, leaving fewer workers to pay taxes, and many more seniors will be collecting from the system, and live longer due to advances in medicine! Tax revenues remain low and the economy struggles to recover. United States credit rating further downgraded. On 6 April 2012, the fourth-largest credit agency (Egan-Jones) abolished the loan with the United States of AA + to AA. because of growing concerns about public debt.

Countries that have been in this position usually do next, or they raise taxes as much as they can, or have received bailout money from other countries, or both, or as a last resort, the government starts printing extra currency to pay the bills. A small country like Greece is let out, not once, but twice. Another time, foreign countries sought to reduce their consumption of Greece or in another way to get money. So, things like cutting state jobs. Huge protests in Greece resulted in people.

Unlike Greece, however, the United States have a much bigger problem with their financial situation. First of all, there are not enough foreign money to go around to bail out the debt in the United States! Which will leave the country with two options, raise taxes on the stunning new highs, very deeply cut programs or print more money to make up the difference. Printing more money on a massive scale to help pay the bills would in turn create hyper-inflation, because it would devalue the dollar so low, the prices of goods and services will go up dramatically, changing the standard of living for all. It is much the worst of recession or depression. It would not be the first time that the country went through hyper-inflation. Other countries such as Mexico, Russia and Argentina have gone through similar situations.

So how can we prevent such a collapse in the economy that would affect people lives so dramatically? The answer is simple, free market! Let's start with one of the most important government program that is Medicare, which hardly contributes to the deficit out of control spending. Here are some of the solutions proposed and implemented to some extent so far ...

Under Obamacare plan adopted, but not fully implemented more than 15 records of people who will decide how much money the government will pay for various health care and which services will be covered and what services would not be covered. If the Council decides to pay less for services than non-Medicare patients, they will see higher costs to such differences or the Mayo Clinic, Medicare patients will be more accepted.

Paul Ryan's plan is the solution of the problem, this plan would create competition with more consumer participation in health care costs for those younger than 55 years through a competitive bid that would create a spending cuts in Medicare spending without the use of hard hats.

Here is what he says ...

"The second cheapest approved plan or fee for service Medicare, which is the cheapest, will establish standards to determine the amount of premium support plan by choosing higher. If you chose the more expensive the higher the scale of the plan the plan, he or she will be responsible for paying the difference between the premium subsidy and monthly premiums. "

"On the other hand, if the senior chose a plan that will cost less than the benchmark, he or she will receive a refund for the difference. Payments to plans would be risk rated and geographical correction. Private health plans will be required to cover the actuarial equivalent of the minimum income packages that Medicare reimbursement for services. "

He estimates that health spending will be reduced by 2.5 billion dollars, while eliminating Obamacare tax hikes. The plan going in the right direction, but it does not solve the entire problem with health care costs because they see people spending their money, and that the insurance company's money. Getting a reduction in health services that will provide the greatest service at the lowest possible price based on you, the consumer, not just the insurance company!

Here is how a consumer driven plan works, and that goes for both Medicare and private insurance. Need an MRI, different hospitals in your area charge anywhere from 2000-3000 U.S. dollars. On MRI experts charge $ 600 and you choose that one instead of the hospital. Your plan consists of the feasible. This reproducible will be reduced to what you have to pay for better choices you made. You can save money and saves the insurer money in this case the taxpayers. The mandate of the deductible is limited to what can be reduced in relation to medical expenses, because to admit that one is filled there is no incentive to save more money for future medical treatment.

With consumer-driven plan, you can add all kinds of incentives that creates competition in the healthcare industry! Another example would be, if you need heart surgery and a hospital costs say, $ 80,000 and another $ 43,000. You can choose from a hospital charges $ 43,000, your deduction is eliminated and no co-pays for medicine or doctors to three months during rehabilitation. Now the dollar figures may vary in your area, but you're getting the idea to the consumer driven plan, not just by choosing an insurance plan? Consumer driven plan is a solution for the demolition of high health care costs while maintaining world class service!

Now the United States from bringing a large recession. As mentioned earlier in this article, President Obama has decided to use the stimulus package, which consists of taxpayers' money to create jobs and maintain existing ones. Statistics from the government are insured and we can see that the policy does not act like you promised. Allegations have been mentioned from the west coast to east coast. The sample consists of six states that are allocated and how much money he received to date. The total amount given to all six countries the respondents was 70.4 billion dollars. Total employment for all six countries was 62 027. A very low score considering how much money was spent. The stimulus plan is nothing to boast, it is not even turning around the economy has created many jobs as advertised.

Here is how it can be turned without the use of stimulus money. Take Apple for example. They have recently announced that their total earnings in the first quarter of this year (2012), which was astonishing $ 39.2 billion! It blew away expectations! How much stimulus money used to have this job in record profit sharing? You guessed it, none! Apple has become the most valuable job in America, despite a weak economy, their business is booming without the help of any stimulus money! So the key here, the free market will eventually turn the economy around. And when the economy turns, the tax revenue goes up, as it also helps pay for programs and the national debt down the road.

And one thing that has not already been mentioned, but did not play a role in deficit spending, and this is a post office that has lost billions of dollars. The government is not allowed to act as a mail company to become a liability, not property. One way to resolve mail delivery is limited to resident mail three days a week and business mail three days a week and those days are spread over the six days. If the job requires more supplies than those provided for 3 days, they will have to pay a user fee. If the mail must be delivered on a day which is not part of the rotation of three days for the people then they must pay a user fee.

So there you have it, a simple but effective way to prevent the U.S. economy from going through a major economic crisis that will affect the standard of living as we know it!