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If you put the Federal Government

in charge of the Sahara Desert, in five

years you would have a shortage ofsand--

Milton Friedman

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Medicine and theVampire Economy

Lee D. Hieb, MD

Orthopaedic and Spinal Surgeon

Lake City, Iowa

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Dont prey

on each other

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Dont prey on the dead

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Prey on the living (productive)

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Only two possible outcomes:

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??

Why is America the MostProsperous Nation on Earth?

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Why is America Prosperous?

Democracy?Natural Resources?

Low population density?Work Ethic?

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Why is America Prosperous?

History of Economic

Freedom

Rule of Law

Respect for Private Property

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America

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American Decline as Disease

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Before Treatment:

Correctlyname Diagnosis

Catalog and analyze theSymptoms

Examine the Signs

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Symptoms

Decreased economicdevelopment

Under/un-employment

Escalating prices

Diminishing standard of living Diminishing middle class

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Medical Symptoms

Shortages of physicians

Shortages of necessities

Uncertainty of investment

Escalating overhead

Price Controls

Fear of Prosecution

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Economic Signs

Government administers a

capitalist system with an

immense bureaucracy

Criminalization of violators

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150,000 pages Medicare Regs

2000 pages

on billing

RAC

Auditors

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Tax Code

1913 400 pages

2011 82,000 pages

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Top Rule Producing Agencies

11

Treasury

Commerce Interior

EPA

Agriculture

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Rules (completed) > 100 Mil

impact

H and HS 23

EPA 4Treasury 3

Energy 3

DOE 2

Defense 0

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11 Pages of laws

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9 Pages= Disposal CFL

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Economic Sign

Government sustainseconomic life through

spending and borrowing

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Private vs Government Spending

1920 to 2011

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Economic Sign

Producers are organized

into cartels some of which

are favored over others by

government policy

(syndicalism)

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Economic Sign

Profit is held privately, but

loss is public.

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Economic Sign

The government acknowledgesno restraint on its powers.

Words have no meaning

Money from thin air

Property is no longer private

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Economic Sign

General Belief: Only the

State can protect the

individual from

unscrupulous businessmen.

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Economic Sign

Generalbelief:

Prosperitywill follow acultural and

spiritualawakening.

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What is the Diagnosis?

F. A. Hayek, NobelLaureate Economist

William Welk, HarvardEconomist

Thomas Dilorenzo, PhD.Economist, Mises Institute

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Public/Private Partnership:

Germany, Italy and Spain

Vast regulations

Violations of property rights

Inflation

Price controls

Taxes

Criminalization of business

activities

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F.A. Hayek: Road to Serfdom

Germany 1928: 55% Gov

controlled, 10% Military

Spending

US today, 45% Gov and

21% budget military

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rviving the Vampire

(Fascist)Economy??

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Business Organization

Sales

Manager

Purchasing

Agent

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Business Organization

Sales ManagerPurchasing Agent Public

Relations

Legal

GovernmentInterface

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Hire a

Contact Man

Former Pols on corporate boards,

etc.

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Companies Join for Safety

Small companies cant

compete legally--form

external legal arm.

Band together to lobby and

appease government

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All for the Volk:

Camouflage private interest ascommunity benefit

Conrad Hilton

wentGreen

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Economy of Coercion

Incentives forunwanted

investments

Forced investments

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Vampire Government

Increasing bureaucracy

meant increased

functionaries

Became a legally privileged

group.

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Cowering Businessman

Live in fear of beingprosecuted

Cannot keep track ofthe laws

Fear new extortion

Fear new decree thatwill bankrupt him

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Courageous Businessman

Not for

investment

risk, but for

circumventing

regs

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When all else fails---

Give up and join thegovernment.

(Adopting another fascist

characteristic: Pragmatismover Principle.)

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Outcome--at First

Government safeguardedbig business and avoided

bankruptcies.

Companies who couldnt

compete funded partymembers for favors.

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Gave lots of money to party

Lost all economic freedom

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To live in this process is

absolutely not to be able to notice

itone no more saw it developingday to day than a farmer in his

field sees the corn growing. One

day it is over his head.--Milton

Mayer, They Thought They Were Free

Principiis obsta. Finem respice.

Resist the beginnings. Consider the end.

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Progressive Economic/ Social

Oppresssion

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Best Outcome

1954 Franco

woke up toFree Market

reforms

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Conclusions: We are at tipping pt.

Without general economic

reform we cannot maintain

quality medical care

Economic improvement

means decreasing government

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Dont surrender a rightmake them take it.

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Practical Note

Stay lean, mean, able to

turn on a dime

Produce necessities, not

pain palliatives

Prepare to downsize

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Pragmatism With Principle

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Hope for the Future

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