Challenges from Modern Amenities and Simple Strategies to Combat those

AMENITIES AND BLESSINGS OF MODERN ERA:

We are lucky living in these modern times when science has advanced so much to ease our many health related issues. We are now able to take care of our health much better than what we could few decades ago. In past century alone, we had many innovations. For example, antibiotics were discovered, cholesterol is better understood, blood sugar meter invented, tests like HbA1c developed and we now know that peptic ulcers is caused by H. pylori and many such ingenious discoveries and breakthroughs.

CHALLENGES AND ISSUES FROM THE BLESSINGS OF MODERN ERA:

While these inventions and innovations have provided us so many amenities and blessings, they have brought many challenges and issues to our health also. If we understand these issues well, we can protect our health by avoiding many pitfalls that affect our health adversely. I suggest use of simple common sense to combat these challenges. I have explained some of the major issues and challenges and have suggested recommendations and strategies to keep enjoying the amenities and blessings and yet stay in control to preserve and protect our health.

I received an article circulated by email from an old friend Mr. Majyd aziz, who has remained President of Karachi Chamber of Commerce and Industries, largest organization representing the business community in Pakistan. Without any doubt his views are the views of the business community of Pakistan, which makes up majority of population of Pakistan.

No sane person in this world can condone that two neighbors like India and Pakistan should ever live in a strained relationship, let alone wage several wars more in the past 60 years, not counting many other serious interlocution between the armies on several more occasions. Both countries are nuclear power and a misunderstanding or accident can cause havoc not only for these two countries but for the region and even for the world. Both countries and particularly Pakistan has been spending a substantial part of its GDP on the defense for past many decades because India is considered to be the enemy on the border, thus robbing the poor public of the possible infrastructure, education and health facilities, electricity and even potable water.

Everything that Majyd Aziz has said in the article that is reproduced below, not only stands to reason, I feel it is the deep desire of every common man in Pakistan right from the time of partition despite he fact that many people lost their assets and some lost lives of their loved ones. He has eluded very rightly that emotionally charged attitudes because of personal losses suffered by some people of influence in Pakistan and not being able to see the reason and adopt a logical approach has caused  failure of creating a peace. Kashmir dispute has also remained an ongoing reason for the acrimony between the two countries to increase.

Well, as we write this, thank God we are witnessing the distance between two countries seem to be narrowing. Pakistan has decided to reciprocate the most favored nation status to India. This will help both countries and their citizenry. If anything, the implementation of these moves should be hastened to bring about peace and tranquility to both countries, region and the world. Let us hope that the ever present issue of Kashmir also gets resolved in this friendly atmosphere.

Here is the article of Mr. Majyd Aziz:

Lessons from Indian Army for Indo-Pak Businessmen

 By: Majyd Aziz

Former President Karachi Chamber of Commerce and Industry

I was attending a meeting as part of the 80-member Pakistan Business Delegation led by Pakistan’s Commerce Minister Makhdoom Amin Fahim in September 2011. During the visit I noticed strategically placed billboards by the Indian Army. Each billboard had one of the three touching and significant slogan as it depicted the vision of the Indian Army.

I wrote down these motivating slogans. I realized that though these slogans were about Indian Army, they were remarkably applicable to businessmen of India and Pakistan both, especially with the prevalent “feel good” environment.

Their first slogan is “Empower your dreams”. For so many decades, the Indo-Pak businessmen, as well as their business organizations, have been demanding the normalization of bilateral trade regime and increase in trade and, hopefully, in investment. The desire has always been unhindered movement of businessmen across the border as well as longer duration, multiple visas without any limitations and restrictions. They want to see the day when there would be substantial bilateral trade ensuing very soon into a favorable and mutually beneficial Free Trade Agreement. This has been the vision for many years and now the time has come for a formidable and sincere campaign to achieve this objective. The visit of the Pakistan Business Delegation in September and the expected 200-members Indian Business Delegation led by Indian Commerce Minister Shri Anand Sharma in February of 2012 would surely be the way in which the dreams would really be empowered.

The second slogan is “They march with melodious precision”. Businessmen and industrialists on both sides of Pakistan’s eastern borders have been on the same page and not only have the yearning to undertake extensive bilateral trade but are passionate about their patriotism and their demand for joint ventures, technical transfers, and a common approach to trading with third countries. They have unanimity of views and are willing to support each other on an individual level and even at international forums. This is imperative as the time has come for them to accept that lot of water has flowed under the bridge while the hardliners and negative forces in both the countries have created a state of despondency, misery, and hatred for far too long. That is one reason why it is important for entrepreneurs as well as workers and employees that the anti-business forces must be silenced and sidelined and that the advancement on the avenue of prosperity, progress and peace is largely dependent if they make headway with their own mind-set of trust, purpose, and strength. This would then truly be a harmonious march.

The third slogan is “Poised for victory”. Fifteen years after India granted Most Favored Nation status to Pakistan, a decision has been taken in Islamabad to reciprocate. Thirty five years passed by before any Pakistani Commerce Minister took a trip to New Delhi. After initially erecting unnecessary roadblocks at WTO against the GSP+ incentives for 75 textile items announced by European Union to assist Pakistan, the Indian government unilaterally decided not only to withdraw objections but also to support Pakistan’s case. Recently, India wholeheartedly assisted Pakistan at the United Nations enabling Pakistan to obtain the mandatory two-third votes essential for becoming member of the Security Council. Inspite of its own infrastructure shortages, India proposed to sell 500 mw of electricity to meet shortages this side of the border. Moreover, Premier Dr Manmohan Singh categorically assured Pakistan’s Commerce Minister that India would honor the Indus Water Treaty. India also is spending billions to upgrade the infrastructure at the Wagah border and this would result in the movement of over 1000 trucks every day.

Pakistan too has moved forward. The frequent meetings of the two Prime Ministers at the sidelines of high profile global forums has thawed the ice and enabled the Ministers and officials to make positive moves for the better. Recently, when an Indian Air Force helicopter entered Pakistan’s territory, the military did not take action but honorably allowed them to return to their base in India. Pakistan needs cheaper oil and favorably priced raw material for domestic industries. Pakistan also requires comparably priced machinery for upgrading its local industries. All these are possible from India. Pakistan understands that India and China have done wonders in bilateral trade and are expected to cross $ 100 billion by 2013 and that the possibility of Pakistan taking advantage of trilateral trade and investment is apparent. Pakistan knows that in the global trade scenario, stagnation and isolation are not prudent because the water is rising and it has to be plugged otherwise there would be the threat of drowning in the global deluge. Thus the only way to plug it is to think global and trade openly.

Yes, businessmen of India and Pakistan must pay heed to the messages on the billboards in the cantonment area of New Delhi. The messages are loud and clear. There is no turning back. At the same time, governments of both the countries must shed their paranoia, at least with regards to facilitation of bilateral trade and investment. India must recognize that a stable Pakistan is also in her own interest. India must also take the lead in accepting that billions spent on defense and security matters means that millions of human beings are kept in perpetual poverty, suffering, and deprivation. Jobs and quality of life should be the paramount priority. And, for the Indian Army, a short and sweet advice, with truly a sincere hope. The next time I am in New Delhi, the third slogan would have been amended from “poised for victory” to “poised for peace” because the two business communities would, by that time, have ensured that for sure.

MAJYD AZIZ November 09, 2011

MHG GROUP OF COMPANIES

D/49, SITE, KARACHI-75700

Cell: (92-300) 826-1969 

Email:  majydaziz@gmail.com

 Greed is the precursor of dishonesty and corruption.

 We need to watch continuously what our elected representatives are doing to ensure that they keep doing good public service.

I was emailed the following article claimed to have been written by Charlie Reese, who has been a journalist for almost all his life. He wrote for Orlando Sentinel and retired in 2008. I tried to verify on Wikipedia and Snopes.com. He seems to have written this column in 1985 under similar head, which was then modified.

Though he wrote this column 25 years ago, it clearly reflects a down to earth true picture of the situation of our country, politics, parties and society today.  Charlie Reese has put the blame fairly and squarely on the elected representatives (congress plus Supreme Court), who are responsible for the decisions, legislations, changes in our cultural and moral values and judgments that impact each one of us every day. However, it must also be remembered that we elect these representatives and it is our duty to watch them to ensure that they continue doing the “right” things and not those things which are against our collective interests.

To achieve this we must insist on transparency and accountability by these representatives. These two elements, it may be said, are the parents of a good democracy and governance. I believe that the electorates are not absolved of their duty by voting once every few years only; they should be continuously vigilant to ensure that the elected representatives are doing what they said they would and act in the best interest of the country and all concerned. Their actions must be transparent and they must remain accountable.

Sometimes personal greed, corporations, interested groups and their lobbyists are always there to deflect honest legislators who primarily wish to do public service. Temptations are too great at times to resist. But with transparency in their action and ongoing accountability, the possibility of deviation under the influence of legal lobbying or corruption may be avoided. If we relax these conditions, we run a risk of those representatives getting a free hand and start making decisions on many issues as they think fit and not necessarily in our best interests. Worse still they may amass a lot of power, become authoritarian and create havoc.

Being a student of history, I do not ever forget that Hitler and Mussolini were also elected by their fellow countrymen but basically because of not having such checks and balances, they became terror for their country and the whole world. Such further examples are seen even today, when a number of such elected or unelected dictators have been facing their deeds in the International Criminal Court in Hague. I would not bet either that many more will not stand in the same court after their misdeeds. I would dare say that many of such misdeeds may be stopped before they occur, if we insist on transparency of work by our elected representatives and their continuous ongoing accountability, thus sparing many innocent people from their tyranny and damages from their unchecked work by citizens.

I am so impressed by Charlie Reese’s understanding of the place of elected representatives in our life that I am tempted to reproduce the whole article I received; here it is:

================
545 vs. 300,000,000 People -By Charlie Reese

Politicians are the only people in the world who create problems and then campaign against them.
Have you ever wondered if both the Democrats and the Republicans are against deficits, WHY do we have deficits?
Have you ever wondered if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes?
You and I don’t propose a federal budget. The President does.
You and I don’t have the Constitutional authority to vote on appropriations. The House of Representatives does.
You and I don’t write the tax code, Congress does.
You and I don’t set fiscal policy, Congress does.
You and I don’t control monetary policy, the Federal Reserve Bank does.
One hundred senators, 435 congressmen, one President, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country. I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank. I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman, or a President to do one cotton-picking thing. I don’t care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator’s responsibility to determine how he votes. Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party.
What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits. The President can only propose a budget. He cannot force the Congress to accept it. The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? John Boehner. He is the leader of the majority party. He and fellow House members, not the President, can approve any budget they want. If the President vetoes it, they can pass it over his veto if they agree to.
It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted — by present facts — of incompetence and irresponsibility. I can’t think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.

If the tax code is unfair, it’s because they want it unfair.
If the budget is in the red, it’s because they want it in the red.
If the Army & Marines is in Iraq and Afghanistan it’s because they want them in Iraq and Afghanistan …
If they do not receive social security but is on an elite retirement plan not available to the people, it’s because they want it that way.
There are no insoluble government problems.

Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power. Above all, do not let them con you into the belief that there exists disembodied mystical forces like “the economy,” “inflation,” or “politics” that prevent them from doing what they take an oath to do.

Those 545 people and they alone, are responsible.
They and they alone, have the power.
They and they alone, should be held accountable by the people who are their bosses.
Provided the voters have the gumption to manage their own employees…
We should vote all of them out of office and clean up their mess!

============

If most of us keep an eye on daily decisions of the congress, maybe it will remain streamlined and honest. In fact in this day and age of internet, if there is an issue requiring public opinion and sentiments, it can be easily obtained from them on internet. Recently for example when the congress was wrangling over the debt ceiling issue for weeks, the polls showed that the American populace wanted the same settled ASAP. Because it was delayed to the 11^th hour, those good meaning congress members have not only triggered many unforeseen events causing uncertainty in our economy and stock market but have also affected the whole world because of additional European economic weakness. That is clear disservice of the nation by their elected representatives. They may have done that in good faith but not budging from their party political agenda when the national interest is at risk is certainly not accepted by electorates. 

We should have referendum to dismiss all congress members, have re-election and elect only those who are coming for public service and are responsible persons.

Read this and most likely you will agree with me.

When FAA is disabled because of congress’s inaction the congress members are on vacation and when the debt ceiling debate was on they were having fun!!!!

Let us re-elect only those who are responsible.

Someone sent me this photo yesterday. I do not vouch for authenticity but I do not get surprised either watching the circus and drama on the TV over the debt ceiling for the past few weeks.

At that time I was watching the news that Federal Aviation Authority (FAA) has been disabled and cannot work because congress has not reached any agreement, their time was spent mostly on a “non-issue” debate of raising the debt ceiling. How childish?

As soon as that was done the congress went for a five week vacation without dealing with matters of FAA leaving all related matters in a limbo. This caused almost 65,000 construction workers put out of job because the matter was still under discussion in congress, which now will be discussed after they come back from vacation!!

How irresponsible on the part of congress members? This is when Americans needs jobs so badly.

And then this photo, which shows them playing solitaire, surfing web, enjoying FaceBook and watching spots score, when House Minority Leader Lawrence F. Cafero Jr., R-Norwalk, pictured standing, far right, is speaking and presumably the house was in session at some kind of serious work!!

This is unbelievable. When the debt ceiling debate is underway, these members are at their own chosen jobs, at our cost; they are on the payroll of tax payers!! Do they not think they have a moral duty to their voters and people needing jobs to bring bread to the table for their family? Is this the wisdom that our elected representatives show?

Here are their offenses:

• Being not attentive when the serious debate, which is likely affecting the reputation of the USA is underway
• Debate itself was self created pastime by them, since the money was already spent under the congress approved budgets in the past and hence conceptually the debt was approved with budget. Debate was about the payment of that debt, which was already created. This is the height of irresponsibility showing to the world that the USA is likely to say no to payment of the debt undertaken and spent? No responsible person does it in private life. If the congress even discussed that possibility, which they did, they do not represent our value system and we should not have them representing us.
• Then they go away on vacation putting 65,000 people out of work and FAA in disarray, causing safety issue to the air transport, loss of revenue and bread on table for thousands of workers?.

CONCLUSION: They should all be dismissed and sent home. We should have a referendum to be able to do that if needed. Have new elections. I am sure some of them are really good and have become congress members because they have pain of public at heart. They who are there for public service and have people’s confidence will be re-elected and other will stay home and do what they are doing in congress at our expenses and our pay roll. We will surely find someone else who is responsible and do the job that they are sent here for.

An open letter to Respected Congress members

We have been witnessing the Republican and Democratic parties posturing, politicking, wasting time and spending tax payer’s money when at the same time taking us to the brink of disastrous consequences of their tragic performance over the past few weeks. Worse still, a fear is spread that the US going to default on its obligations, bills will not be paid after 2^nd Aug and our government will be bankrupt. Unfortunately it is partly true and rating agencies like Moody’s and S&P have also given notice that they are considering to downgrade US’s rating. All this stage show is because the GOP who controls the House refuses to agree to raise debt ceiling without getting something from democrats in return as concessions for us!

Given that this is being done in good faith for the good of the country. But only a small number of the citizens understand what this commotion is about. Debt ceiling is a non-issue; it is fixed and changed whenever needed by the congress. Presently it needs to be raised because we have reached its limit fixed sometime ago by congress itself. Since 2001 the debt ceiling was raised ten times; was there such a drama even once? Truth is that no one explains why we have gotten into such a huge debt? Let us try and do that.

I agree it will be terrible if the ceiling is not raised, not because the world will come to an end, but because we will surely lose the confidence of the world in our abilities to come together and make important decisions. This may result in unpredictable results, which in turn may be too bad particularly in the weak economy, because the monetary and stock markets react unfavorably to uncertainty. As said above, debt limit is set by congress; they can and will raise it (few days are left anyway, within which congress WILL raise it). It is an internal matter for congress and it should be done as a matter of normal course of business.

Issue of raising the Debt ceiling is made into an absolute comedy, which if these politicians do not conclude quickly, may turn tragic. Larger issues that created this are as follows:

• It is a fact that we are spendthrifts and not fiscally disciplined for past many years.
• We do not have enough revenues to meet our expenses, which needs to be increased.
• Some spending are musts; like the Social Security, Medicare, Security measures etc. But many unnecessary expenses must be cut down. A lot of obligation to police the world that the US has taken on must be shrugged off because it is very expensive for US taxpayers.  
• GOP is totally against increasing taxes, so how do we increase revenue? This position is not acceptable.
• “Earned” entitlements of elderly and veterans must be respected but a future strategy must be chalked out to meet new necessary obligations.

Only during last few days they have started listening to voices more forcefully that WE NEED TO REDUCE SPENDING AND AT THE SAME TIME INCREASE THE REVENUE. This very obvious solution was only being talked about in fragments. This is our only salvation to be able to reduce the deficit every year. Large debt that we have created equals to almost our one year’s revenue and causing doubts on our credibility and our casting fears about our solvency.

First off, let me say that I am convinced that we will not default. Our leaders may be acting childish or even irresponsible, but they are not foolish to let that happen. I am surprised that our responsible representatives in congress are not taking the citizens into confidence and tell them in plain language the real serious story and measures needed to rectify the problems.

Let me elaborate. Our government collects revenue mainly from taxes. That money is spent on all sorts of projects for the benefit of Americans. These projects include all the welfare projects, entitlement programs, infrastructure projects, national security matters, space programs etc. We must also keep in mind that there are other several realities happening simultaneously.  They are as follows:

Our aging population is increasing

Our overall population is increasing

Our needs are increasing

Things are getting more expensive as we go by

Our income tax rate was almost 90% after the WWII, is less than 40% today

Our expenses have gone up with years

Keeping in mind above facts, net effect is that our spending is more than our revenue. Hence we are in deficit every year for many years. This deficit is gradually increasing. Deficit is met with by borrowings in the shape of printing money by Feds and giving it to lenders in the form of bonds with a promise that it will be paid back with agreed interest at a point in time in future. Some borrowing is internal from other trust funds.

Hence as mentioned earlier we must tighten up our belts for as long as necessary, take hard decisions, live in simplicity, and ensure that we reduce our debt substantially and not only have the balanced budget but have surplus to be able to pay the past debt.

We must ask our representatives in congress to stop wasting their time. They must come to a compromise resolution to do this in the national interest. We must keep a few simple objectives in front of us. We should ensure that we do not reduce the entitlement payments. No one should stay below poverty line. People in middle class must be able to afford an acceptable standard of living doing a respectable job. Large corporations (which are owned by Americans anyway) must pay higher taxes, because as a nation we all have a responsibility to look after each other. Let us do that.

I came across this review by Jeffery Wasserstrom of book: ‘On China ’; author: Henry Kissinger, in Time June 13, 2011:  http://www.time.com/time/magazine/article/0,9171,2075237,00.html

“China’s modern history has been shaped by improbable occurrences. Only a reckless gambler would have wagered in 1929 that the communist Party, then a ragtag organization on the verge of extinction, would rule the nation in 1949.  In 1952, as the Korean War raged and Chinese children watched plays casting Uncle Sam as an arch villain, it seemed unimaginable that just two decades later Chairman Mao would be greeting an American President in Beijing.  Similarly, who thought back in 1979, when Deng Xiaoping went to America and spoke of his country’s need to modernize, that China’s economy would surpass Japan’s by 2010.”

I thought this requires to be explained in a little different way:

The review remarkably puts these unbelievable facts across in only a few lines. This only tells us that if humans decide to do something they usually achieve it provided they are ready to sacrifice whatever it takes. That is what Chinese did in the past few decades under leadership of Mao and then tuned into the new world realization of capitalism. They remained isolated for a few decades, lived in communes and suffered ultimate miseries. Next then, they accepted even negative growth in population, which is not only sacrifice but is also unnatural living for any human beings. That is what a nation pays as price for coming back to top. And they are on their way to top.

We tend to forget the salient parts of history though. China has history of their dynasties, civilization and culture, which is more than two millennium long. For them to climb this ladder of progress, growth and transformation was only making a decision and simply sticking to it to make it happen. China is like European and Middle Eastern civilization in this respect. Compared to those titanic examples in this new world order, most of Africa, substantial part of Asia, Australia and Americas are young toddlers. With the exception of Mexico and Brazil, histories of nations like US and North America and most of Latin America are less than 200 years old, Part of Europe is almost similar historically and so is Australia.

Historically speaking, we need to eagerly wait for the leadership of China, India, Brazil, UK and older part of Europe. Even Turkey, the center of Ottoman Empire and Euro-Asian country with long history after a struggling for about two centuries is now coming up again strongly and may be another similar leader for the world in times to come. Egypt and surrounding nations like Israel and Palestine, Iraq and Iran, though presently weak and flimsy looking with so many divisions amongst them also have historical past of long and cultured civilizations and they may also lead us culturally and socially in the right direction.

If we keep history as our guide, these improbable looking changes are not difficult to understand and accept and even anticipate such advancement in leadership.

“The Hayek vs. Keynes” raps on Youtube.com

“Fear the Boom and Bust\” a Hayek vs. Keynes Rap Anthem

Fight of the Century: Keynes vs. Hayek Round Two

I have watched and listened to both raps “The Hayek vs. Keynes” on Youtube.com, links of which are above here. Very interesting and very humorous. Howsoever funny they sound, we all need to go deeper in our habits and the way we live. We should try and understand what is going on now and where we have gone wrong on our way to find better ways of living and higher standards of living. Also this should tell us what wrong have we done to the economy as a whole of countries that have been very rich and now some of them in different kinds of trouble including almost coming to the verge of bankruptcy. This state of affair is in many countries of Europe and US also. Third world countries seem to have sustained the shocks of meltdown of western economies fairy well.

I am convinced that the speculators and vested interests, perhaps including market makers have made it difficult for even academic economists to consider all the aspects of the moving parts, which results in a particular outcome of any action taken. Add to that the unforeseen terrorism, accidents and uncertainty caused by, say 9/11 or by the Seal 6 operation taking out Osama causing crash of commodity markets and you have a recipe for which no one can predict whether the result will be a Christmas pudding or a burnt out barbecue in the stock market or commodity markets. The pundits and speculators both have created a psychological balloon, which gets burst or manipulated by such important and ordinary events alike, more at the mercy of manipulators. But there is a reason for all this. It is obvious that we have been doing many unusual and totally not thought through things to know what will be the outcome. It may work sometime, but the accidents are likely to happen and that too serious, because we are sailing in uncharted territories.

Academician’s worries are real; they worry about unforeseen and nightmarish events, which may make their projections look like joke and make them look foolish.  These are more real in recent times when the information flow is far too faster than we can imagine. However, the forecasts, be it because of the economists or despite of them, sometime work as if the forecaster was the prophet of some kind, or fails miserable completely, making a stupid of so many pundits. Fact is that common sense always wins. I have come to conclusion that whatever a lay man does in an uncomplicated situation is perhaps the correct direction, if he uses his street smart wisdom and common sense.

These decisions are so common sense based that they almost do not fall in category of issues and decisions that may require the professional knowledge of an economist. These are what we have learnt as “default” decisions. For example, if I have a fixed income, I must remain within the limits of the income and should not overstep my limits. If despite of following this dictum, I need to borrow some money, I must pay it back ASAP, preferably within a month. This situation has changed because even with limited income people can obtain easy borrowing through his credit card, which has become a norm. Another example would be borrowing heavily and if one is not able to pay, filing a bankruptcy under bankruptcy protection law. Both these examples have a lot of abuses from many concerned people. But what is more important is the fact these new ideas of the past century has changed the whole picture of even trying to understand Hayek or Keynes.

There are many such examples, but these two most common ones suffice because these have not only changed the way the business is done, but has changed the ideology and misuse has been rife in both these cases.

If despite the insistence of vested interests and particularly the commercial and investment banks, things were kept simple, we would not have suffered the kind of shock that we did by the number of derivatives that were allowed. Unfortunately, as described earlier, these went wild and out of control by not having enough supervision on those vested interests. Regulators may have been involved in the financial benefits, which we do not know.

To keep ourselves, our society and our financial health in order, we all need to look for the general betterment than personal ones. Follow simple guidelines and use common sense to live within our means. Keep our debts to minimum. Keep paying back all debts in time. If we did that we surely can use the academician’s and economists’ advices with some benefit. Otherwise there will be theories of different experts and we shall be continuing to wonder which is correct and which one to follow.

Let us rap on such resolves, rather than raping on the things that we do not understand that well. Even those who write theories may not be able to answer and justify their position too well, because if they did then there would not have been another acceptable theory to negate theirs. What we need from the experts is to have some definitive guidelines and unanimity in those directions.

Should it be considered unethical to participate in shareholdings of Cigarette companies since tobacco is attributed to causing cancer? Is it against religious beliefs of Jews, Christians and Muslims to participate in Pork and alcohol industries? Holy Books forbid it? My answer to both the above questions is an unequivocal YES. On the same premise it is also unethical and immoral for the Health Insurance Companies to benefit from miseries of sick and in some cases dying human beings. I believe it is our moral duty to campaign against such businesses that profit from human suffering.

Tradition and Culture develops into Laws, Morals and Ethos:

We have had this debate going for a long time; what is right and what is wrong when viewed in the context of morality, ethics and legality. Some of us feel very strongly against it, some take it in stride.

Those who closely follow their religious, ethical and moral teachings would not invest in interest bearing deposits or pig and alcohol related (Haram or Non-Kosher) food businesses. In the last few decades the ethical dilemma has been stretched into the tobacco  industry, which causes lung diseases including cancers and hence considered to be morally wrong  to participate in industries that are  likely to harm mankind  or  to that matter any living being, since they all are  the creation of God Almighty.

Animal lovers have organized themselves in “societies for prevention of cruelty” to soothe their conscience and tell the world it is unfair to treat the living being cruelly or kill them unnecessarily. Most religions, on which almost all ethos and cultural philosophies are based, also teach this.

There has been hot and high profile debates concerning   dog fights, cock and snake fights based on the same principle.  We have discussions even on the plight of chicken being fattened with hormones for human consumption, and kept in compacted   spaces in poultry farms. And very rightly so, we should respect every living thing and not harm them. This is only humane.

Morality, Ethics and Legality of Health Insurance Profits:

But here is the human paradox. While we are touched by and are remorseful of the treatment that is meted out to birds and animals, we seem to remain less concerned to human suffering in many instances. Except of course in the developed and rich countries of the world such as US and Europe where measures are in place to provide food, shelter and clothing for their needy citizens and to be followed by universal education and necessary health care. However, with best possible intentions, it is a fact that even in such rich countries and nations some human beings die of some curable diseases. And this is highly regrettable that rich nations should allow its citizens to die from curable diseases because he or she cannot afford to buy the treatment.

Health Insurance companies in USA:

Unfortunately that has been the state of affair in one of the richest country; USA because of long overdue health care reforms. We hope this situation will change when these reforms come into effect. However, an indirect pressure on common citizen still remains potently hurting their other affairs of life; namely the cost of the health insurance.

Before the reforms, various statistics published reported   the adverse effect of this high cost of insurance and how it has kept a large number of Americans uninsured.  That situation has unfortunately not been addressed in these reforms because of the vested interest of health insurance companies. We are at the same time zone as we once were with regards to cigarette industry, when no one could talk about  them, but now legally no cigarette can be sold without a clear warning form surgeon general on each packet. Same with alcohol industry, which got prohibition removed some years ago. These industries have one common denominator and that is their objective to optimize their profit from every possible avenue including the suffering of human beings.

Not many of us know that USA is the only country in the world where health insurance companies are allowed to make profits for their share holders from the premiums paid by insured. This model of health insurance provision was started in Germany back in 1891 by way of contribution of employers and employees and such funds managed by a health insurance company. This model is still the most popular all over the world and USA is also following it. However, there is a large difference in the way these insurance companies work all over the world and those in USA.

Whereas, health insurance companies everywhere in the world are “not for profit” entities, the US companies are “for profit” entities. This means these insurance companies are owned by share holders and they make profit from the premiums that are paid by the insured. Such profits constitute as much as one fifth (almost 20%) of the premiums. Additionally since the executives of these companies make such handsome profits for the shareholders, they are also generously compensated with big bonuses. This is what we commonly describe as “I scratch your back and you scratch my back” situation. No other country in the world has such insurance companies and their executives making profits from the premiums paid by insured. Every country with “not for profit” health insurance system hence uses 100% of the premium money for the benefit of the insured, which is the real purpose. Unfortunately our ingenious capitalist system has created a business and a profit model out of the human sufferings.

This is obviously wrong to the insured that have paid premiums in advance with a hope that they will get the services in return when needed. They do get such services, but at that point in time as much as more than 20% has been skimmed off by the share holders and executives of the health insurance companies. Aside from this as much as more than 5% is spent on executive bonuses, and unnecessary expenses like having a big army of personnel to find ways to refuse the claims of the insured and his/her providers, like Hospitals, Doctors, Lab and X-Ray services. Hence the insured receive at least 25% less in return in the shape of services for the money paid in advance. Sometime they are totally refused such return of services for one or the other flimsy reason by the functionaries of the health insurance companies to ensure and fatten the bottom line of their company. In fact almost all these insurance companies have a troop of people assigned to do the work of refusal as often as is possible, not only for the insured but for their service providers like Labs, X-rays, Hospitals etc. It may certainly be good for their profits and perhaps it may be necessary to ascertain the legitimacy of the bills and claims, but it causes a lot of problems and psychological commotion to the insured. And all this “refusal staff” are also an additional expense at the cost of the insured’s benefit, which is reduced by as much as the expenses are made on this account

No other country in the world has such a farce of unfriendly practice particularly directed to someone who is paying money. Worse still this mockery of the pay-master is being practiced in open and under protection of law, which has been promoted by the vested interests. In comparison to such travesty, in some of the countries where this system exists, of course through the “not for profit” insurance companies, there are advertisements promotions by them to compete with each other, as to how quickly they are ready to pay the reimbursement of payment made to insured by the company, or to the service provider that they have contracted with, to supply such services when needed by the insured without delay or hindrance.

With the passage of the Health reforms and its becoming a law now, the insurance companies in USA are still unfortunately armed with a lot of clout with which they are likely to continue their wrong doing under the protection of law through their lobbying practices. We must have further reforms to bring in “not for profit” companies as soon as possible to compete with these mal-practicing insurance companies.

Let us campaign against such unethical practices:

One of the simplest way will be to campaign against the investment into such companies which thrive on the sufferings of their insured patients, maiming them and sometime killing them by refusing the treatment that they have paid for in advance with a hope that they will receive their help when needed. Instead they get refused, their providers are not paid their full work’s worth of money, sometime they are cut off from their treatment leaving them high and dry, only to make profits for the share holders, which is their fiscal but secondary responsibility after the primary responsibility to the patients who have aid in advance.

We all must try and remove ourselves from such sham practices which have been made legit by vested interest groups, and campaign to stop these wicked practices of these companies to make profits for their share holders at the expense of their primary and legal responsibilities to their patients. We need your support to be able to do this in a big way. Please respond by spreading these ideas to as many people as you can and create a momentum for this.