The key to understanding the economic problems going in the United States today is based on a economic concept known as “”price discovery”. This is defined as the process of determining the price of an asset in the marketplace through the interactions of buyers and sellers. If you want to cure the United States of the economic cancer that is destroying it from within, you have to focus on the root of the problem. Our government is regularly engaged in activity that distorts the process of natural price discovery. They throw money into housing which falsely inflates home prices. They pour money into higher education which distorts the cost of a college education making it more unaffordable to the masses. They pour money into our bond market to drive down interest rates. They funnel money into medical care which distorts and destroys true price discovery and makes our health system the most expensive in the world. Then after all of this, we have idiots like Congressman Jim McDermott come along and recommend more market manipulation by trying to set limits on the cost of certain medical procedures in order to help bring down health care costs. Okay Congress, you want to figure out why the price of everything including health care continues to skyrocket? I suggest that you take Michael Jackson’s advice and look at the “Man in the Mirror”. My fear is that the majority of Americans will not understand what has been done to our economy until it is too late.
