For profit drug and medical supply companies are geared to maximize profits

This topic is not a new one and is one I first wrote of several years ago. The concern is the number of for-profit companies who make drugs and medical supplies are not geared toward fighting pandemic or new bacterial strains that keep cropping up. They are geared toward profit. What do I mean by this?

Think of all of the television commercials about new prescription drugs. It will not be hard as there is a growing number with new names that make you ask, now what does this do? Quite simply, a drug company makes more money creating a maintenance drug you take every day for the rest of your life than they do making cures for major diseases.

It is not unusual for the company to codify a new illness which is neatly packaged with this new pill. Or, the new pill may be a supplement to an existing drug to make it better or address the side effects. Did you know there is an anti-constipation drug that is sold to help alleviate the constipation caused by opioid painkillers? Please note this is not intended to slight anyone who is gaining benefit from one of these drugs.

Making a drug that will cure something, simply has a low or negative ROI. One reason is the company would look poor if they charge to high a price for a cure. This is where the CDC and NIH must garner funding to pay for the development of drugs before the pandemic catches fire. The other risk is the new bacterial strains that may develop beyond our ability to fight the strain. This is where I first learned of the funding deficiency for massive exposure problems.

The same can be said of medical equipment. The New York Times has a good piece on the recent history of ventilator production. Agreements have been made then voided by acquisitive companies. These acquisitions were either to protect a higher priced ventilator or a market share. So, there were a number of false starts. What is frustrating is how easily contracts can be voided after an acquisition. This is horribly unfair to the buyer of the service or product, especially when the contract could help many.

There are a couple of larger points to be made. This is a great example of where there needs to be a blend of financial responsibility on investment for the greater good. This is not new. Our country has a history of a blend of corporate, venture capital, private and government investment. This is a key theme of Pulitzer Prize winning author Thomas Friedman’s book “That Used to be Us: How America fell behind in the world it created and how it can come back.”

Per another economic advisor, David Smick (“The World is Curved”) who advised Republican and Democrat presidents, this blend of capital investment need not occur on every investment or in some set order. Sometimes government funding leads and sometimes it may trail. The point is we have way to many either/ or arguments when the right answer is a blend of both or multiple. This is known as the “tyranny of the or.” Our history is built on the blend of capital investment, especially for large infrastructure projects.

So, greater good investments need to be evaluated as soon as possible. When the risk is identified, that is when the spend is needed, if not before given what the challenge is. Not having a COVID-19 vaccine early on is one thing that should have been addressed a few months ago given the development time. Not having enough ventilators is something that should have been addressed well before given their need. Leaving certain things to solely a for-profit lens will mean that some needed investments may not get made or not made soon enough.

All over the place

My favorite conservative pundit is David Brooks, who appears every Friday on PBS Newhour and NPR to recap the events of the week. I have found his voice one of reason, even if I do not agree with everything he says. I have also read several of his books on subjects like building character and community.

He has been an even-tempered critic of actions, decisions and behaviors of the US president. Last Friday, he used the word “inconstancy” of the president as a great risk in addressing COVID-19. The president will change his position within the hour, he consistently misinforms where it needs to be corrected, and he naysayed the severity of the coronavirus through the end of February, so we lost six weeks.

And, the misinformation continues today. So, much that NPR and other news outlets stopped covering his press conferences live. Building off Brooks’ term, I would say the president governs “all over the place.” He will change his tune due to criticism in the news or if he likes a message from one of his sycophants.

One of the better news shows happens to be a comedy show called “Last Week Tonight” starring John Oliver. The focus of this past Sunday night show is the danger people are being placed under by poor leadership, but also by sycophants.

Oliver notes this theme that danger to the American economy is far worse than people dying is beyond misguided. It is dangerous. He highlights words by the president, conservative host Glenn Beck and the Lt. Governor of Texas who downplay the health risk and speak of economic Armsgeddon.

As Oliver points out it is easy to talk big with others taking the risk with their lives. Then Oliver points out the economic fall out of overwhelmed hospitals and people dying. We are witnessing even now the cost of early inaction.

We must focus on the health of people first and foremost. I fully understand the need to help financially people who are in need due to layoffs or hours reduction.

Yet, while we missed opportunities to plan, we cannot miss any more. We must listen to the truthtellers and ignore those who are politicizing and trying to obfuscate the truth.

As Oliver addressed critics, he said he wants the president to succeed at helping fight this virus. But, he cannot be when his primary mission is how he looks. Perhaps Brooks comment a few months back is the more pertinent one – the president lacks common decency and a sense of empathy. That speaks volumes.

Debt, risk and lies

The following is a comment I posted on our friend Jill’s blogpost where she has penned an excellent letter firing the president. See below for a link. There is good back and forth between two of her followers, which is good for its content and civility, the way it should be. Since the debt came up as one issue, as a failing of many presidents including Obama, I used that as one example. These are the views of this independent voter who has been a member of both parties and defines himself as fiscally conservative and socially progressive.

Just taking the debt as one issue, while Obama will be remembered as a pretty good president, to me a key failure was to put on the shelf the Simpson-Bowles Deficit Reduction Act. Dems and Reps did not like it as for every $1 of tax increases it asked for $2 of spending cuts. Obama should have said, let’s start with this and make changes. What both parties fail to understand is we need both spending cuts and tax increases to solve the debt – the math will not otherwise work.

That was when the debt was about half of what it is now. I find the Freedom Caucus who got elected on reducing the debt the height of hypocrisy when they voted for a tax law change in December 2017 that increased the debt by $1.5 trillion – we did not need that, so now when we spend $2 trillion because of COVID-19, we have to go deeper into the well to borrow money.

On top of the many reasons not to vote for Trump (climate, environment, corruption, chaos, lying, global leadership retrenchment, et al), his cavalier short term financial focus to prop up a long running pretty good economy to be a little better for a little while was indicative of why he had six corporate bankruptcies and other failed investments. Even on the COVID-19, his primary focus has been his image, first, the stock market second (his proxy for the economy) then the people, third. This is not a recipe for good decisions and is one reason for his inconsistency.

But, at the heart of all of this, is I do not believe a word the president says and that makes me sad. All presidents lie to some extent, but this one is the most corrupt and deceitful president in my lifetime including Richard Nixon and he was a crook.

But, before we burn the government down, please read Michael Lewis’ “The Fifth Risk,” which reveals the true risk heightened by this “chaotic and incompetent” president’s White House (per conservative pundit David Brooks) and that is the gutting and hamstringing of people who know what they are doing to serve us. Could they be more efficient, always? But, for the very large part, they are dedicated public servants trying to do a good job. Lewis based his book on the required briefing materials prepared by the outgoing administration that went largely unread and not even picked up when briefings went unattended by incoming (or not even appointed) Trump people.

YOU’RE FIRED!!!

The primary focus on the economy is not just make believe

The coronavirus is a tough one. It may be less deadly than other illnesses, but it is still killing many and impacting others. And, while we have heard the young need to worry the least, the numbers indicate that people the ages of 54 and below are the largest group being hospitalized. One ER nurse said it surprised her how many younger folks were being stricken.

Yet, deal with it we must or it will overwhelm our healthcare providers. We simply do not have an abundance of free beds. We are still awaiting a workable vaccine. So, we must do what is asked of us to control its spread. We must “flatten the curve” of the virus.

But, this social distancing has caused our global and US economy to understandably grind to a halt. In essence, our economy is simple – people who need things buy them from people who have them to distribute and so on down the supply line. When people stop buying things, the supply chain grinds to a halt.

Focusing on the economy, people impacted by the virus and the companies that have had to furlough them, is not unwise. But, it cannot be the primary focus. It is an important one, but keeping people safe is the key. Getting them money to buy groceries, medicines and non-durable products is important. Making sure they have a job to return to is important.

But, we cannot lose sight of what this virus can and could do. One of my concerns that precedes the current tenure of the incumbent president, is the significant majority of his decisions can be traceable back to his fragile and large ego. He cannot tolerate looking poorly or accepting blame for anything. So, that has always been his top-of-mind mission. It is also one not conducive to solving problems.

Since the president thrives off the stock market (his main barometer for the economy) success, the fact it has tanked due to the virus reflects poorly on him. It matters not that any president does not have a huge impact on the economy good or bad, but as Warren Buffett said of the current president, “If he is going to take the credit for the rise, he must take blame when it falls.”

So, many fear that decisions will be made that prop up the stock market, but put us at risk. And, until people start buying more things, taking more trips, etc., the economy will still lag. Yes, the economy is important, but let’s focus on it from a people impacted lens. The article below is telling.

https://www.msn.com/en-us/news/opinion/trump-is-in-a-frenzy-over-the-economy—not-so-much-the-virus/ar-BB11Bkcf?ocid=spartanntp

Voting for Trump is not a favorable vote for Bernie

Note the following is a comment I made on our friend’s Jill’s recent post. See link below.

I have written separate posts on the relative veracity of Biden and Sanders. I have commented on a couple of progressive sites as well. I will vote for Sanders if he is the nominee, but I favor Biden. I am an independent who is fiscally conservative and socially progressive. I believe in helping people, but we need to make sure we pay for it and are getting a ROI (i.e. – is this the best way to help?).

Biden and Sanders are genuine and decent people. Neither are perfect, but I don’t find myself questioning the veracity of what they say. None of these descriptions fit the bill with the incumbent. I also recognize what too many don’t that America’s economic system is a blend of fettered capitalism with socialist underpinnings. That simple statement would blow people’s minds.

The question we need to ask is what is the proper balance? That question does not fit on a bumper sticker which is how the president got elected. I am just saddened that our reputation around the world has declined with 64% of Europeans not trusting the president trusting Putin and Xi more. To be frank, I am surprised it is not higher in distrust, as I don’t trust a word he says.

And, neither does Bernie Sanders who calls him a “pathological liar.” So, when I see Bernie fans say they would vote for Trump over Biden it is a puzzlement. I think it is an insult to everything Bernie stands for. I would also caution my more ardent Bernie friends to make sure who they are getting their information from, as it easily might be a Trump supporter masquerading as a Bernie Bro. Trump has and will stoop low to get reelected.

Finally, my friend Bernie is not getting the votes like last time. I was pulling for a good interview on “60 Minutes,” but his subtle answer to a question about Cuba cost him Florida in huge way. One Democrat said it may have lost Florida for the Dems if he wins the nomination. Trump cannot win if he does not carry Florida.

So, I do hope we rally around Biden. Otherwise, the climate change and environmental fights will be lost for a key four year period (per Greta and AOC) and SCOTUS will likely become a 7 to 2 conservative majority along with other judges. This point galvanizes Republicans as Mitch McConnell knows he can shape a future of jurisprudence that favors big business and is diminishes civil rights for forty years.

Discord & Dissension — Part X — Bernie or Bust?

The Fed needs to act independently

The Federal Reserve was set up to be a nonpartisan governing board over the money supply in the US, which impacts the economy. The president would only appoint members for Senate vetting when terms expired. The Fed is supposed to be independent from pressures from the White House.

Yet, the bull-in-the-china shop president wreaks havoc over what is supposed to be done. He acts regally in what is supposed to be a democracy with rules of governance. The Fed should not succumb to any president, but especially this one, who routinely places his self-interests above the country’s. And, that does not lead to good governance.

Presidents have little impact on the economy, only providing some headwinds and tailwinds. This president has done a little bit of both. But, he championed himself as a superior dealmaker and business person when campaigning and since elected. Yes, he has had success, but given his starting point, some financial people think he should be wealthier than he is.

He touts a $1 million loan from his father, but that is fable. An in-depth study was reported by The New York Times in the fall of 2018, that Trump’s father transferred tax free over $400 million to his son before he died. That is well north of a $1 million loan. Plus, there are Trump’s six corporate bankruptcies on failed projects. That caused US banks to stop lending to him, so he went to Deutsche Bank for money. But, there have been other failed investments – airlines, mortgage company, etc.

Trump has eagerly patted himself on the back about the economy. But, the economy was just over 7 years of economic growth and the stock market had more than doubled under his predecessor when he took office. But, as with Trump, Obama should not get too much credit for the economy either. He provided mostly tailwinds and a few headwinds. What is revealed by the stock market fall off due to global softening, falling oil prices and the coronavirus, is the president does not have much to do with the stock market. As Warren Buffett once said, if the president is going to take credit for the stock market increase, then he must take the blame for the fall.

So, the Fed would do well to ignore the president. Yes, the president is entitled to his opinion, but what has been shown over his history, is maybe his financial advice is not as sound as he (or his followers) think it is. My concerns are we are using tools that should be reserved for even tougher times. The stock and bond markets seem to be more jittery with moves like this. And, when people are staying home, traveling less and eating in, reducing interest rates may not be creating a needed salve, if less spending is occurring.

Yet, as noted earlier, what bothers me most is the president is interested in his own optics, not fixing a problem. He has and wants to trade short term gain for his benefit, at the expense of future problems. He did this with the debt and deficit and he has and will do it with the Fed. They need to tell the president, thanks but no thanks.

End of the weekend musings

This old body is weary from various chores. I am still slowly cutting down cedar trees that had fallen during a particular windy storm and decided to clean out the gutters that appeared in need from the ground. I sit here with ibuprophen inside and aspercreme on the sore muscles.

Here are a few random musings for the end of the weekend:

– the president needs to stay away from impulsive travel bans; his first one in 2017 was so bad it was pulled after two days; this one has left US people coming home in long lines for hours heightening risk. One person said folks were referring to the process as Dystopian.Apparently, vetting, planning and communicating are not in his to-do list. Of course, he likely does not use a to-do list.

– Biden looks to have the mojo to carry him to the Democrat nomination. I am hoping Bernie will help convince his more ardent followers to support Joe. And, I hope Joe will be open to at least listening to Bernie. Yet, he needs a good VP choice and he should also involve some of the young and talented tbinkers like Andrew Yang, Pete Buttigieg, Stacey Abrams and Beto O’Rourke on his team. Abrams has been rumored as one the VP candidates, but also being rumored are Senator Kamala Harris, Amy Klobuchar and Elizabeth Warren among others.

– if you want a good microcosm of how untruthful the president is, please refer to the compilation below which summarizes his various and sundry statements on the coronavirus dating back to January. His priority has always been himself, so rather than tell Americans the truth, the president has covered his behind.

– I personally don’t see how the economy can avoid being affected by the restricted to travel, canceled events, fewer outings, etc. This will have an echo effect.

That is all for now. Have a great week. Be safe.

**************
Compiled by my friend Scott on his Facebook.

All direct quotes ….

“I know more about viruses than anyone.” 🦠
January 22: “We have it totally under control. It’s one person coming in from China. It’s going to be just fine.”
February 2: “We pretty much shut it down coming in from China.”
February 24: “The Coronavirus is very much under control in the USA… Stock Market starting to look very good to me!”
February 25: “CDC and my Administration are doing a GREAT job of handling Coronavirus.”
February 25: “I think that’s a problem that’s going to go away… They have studied it. They know very much. In fact, we’re very close to a vaccine.”
February 26: “The 15 (cases in the US) within a couple of days is going to be down to close to zero.”
February 26: “We’re going very substantially down, not up.”
February 27: “One day it’s like a miracle, it will disappear.”
February 28: “We’re ordering a lot of supplies. We’re ordering a lot of, uh, elements that frankly we wouldn’t be ordering unless it was something like this. But we’re ordering a lot of different elements of medical.”
March 2: “You take a solid flu vaccine, you don’t think that could have an impact, or much of an impact, on corona?”
March 2: “A lot of things are happening, a lot of very exciting things are happening and they’re happening very rapidly.”
March 4: “If we have thousands or hundreds of thousands of people that get better just by, you know, sitting around and even going to work — some of them go to work, but they get better.”
March 5: “I NEVER said people that are feeling sick should go to work.”
March 5: “The United States… has, as of now, only 129 cases… and 11 deaths. We are working very hard to keep these numbers as low as possible!”
March 6: “I think we’re doing a really good job in this country at keeping it down… a tremendous job at keeping it down.”
March 6: “Anybody right now, and yesterday, anybody that needs a test gets a test. They’re there. And the tests are beautiful…. the tests are all perfect like the letter was perfect. The transcription was perfect. Right? This was not as perfect as that but pretty good.”
March 6: “I like this stuff. I really get it. People are surprised that I understand it… Every one of these doctors said, ‘How do you know so much about this?’ Maybe I have a natural ability. Maybe I should have done that instead of running for president.”
March 6: “I don’t need to have the numbers double because of one ship that wasn’t our fault.”
March 8: “We have a perfectly coordinated and fine tuned plan at the White House for our attack on CoronaVirus.”
March 9: “This blindsided the world.”
March 13: “No, I don’t take responsibility at all.”

—direct Trump quotes on coronavirus