The doctor is in(sane)

I generally don’t like to get into topics that are too high concept or topics that don’t immediately and directly impact young people, but this morning I had a conversation with a coworker who wanted to better understand the concept of universal health care. After having this conversation, I felt that this is an important enough topic to cover here.

My friend started from a position that universal free health care for all residents of the country would be a good thing. His belief is that the current system is broken, and too many people today have no health coverage, which causes undue stress to the nation’s emergency rooms, which ultimately raises costs to those insured. If everybody had quality, affordable coverage, he surmised, then costs would go down for everybody. He also believed that having a public (government) option that competes with the current private (consumer) system would help to drive down expenses and would result in better, more affordable coverage to everybody.

The Players:

America:

I’m going to keep the concepts as simple to understand as possible, so understand that there are details that are unique to each type of program.  For this conversation, I’m not terribly interested in the details.  I want people to understand the concepts involved.

First, we need to understand what we are dealing with.  In America currently, we have a healthcare system where the majority of covered people are covered through insurance companies that offer services as part of a benefits package.  That is, most full-time employees of a company are offered insurance through the company they work for.  This coverage is generally offered at a substantial discount for the employee (sometimes even free), and a discount for eligible family members (spouses, domestic partners, minor children).  When the employee needs to see their doctor, they contact their insurance carrier and make an appointment.  The patient pays a fee, called a co-pay to the provider, and goes about their merry way.

Some people do not have insurance.  Some do not have an employer that is able to offer coverage, some are not eligible for their employers’ plans, and some deliberately choose not to get insurance because they believe that they would be better off spending that money elsewhere.

That last group of people, who have deliberately made the choice not to get medical coverage get free coverage from hospitals.  Hospitals in America have a rule that they cannot refuse treatment based on inability to pay.  So these people go to the emergency room for mundane things like colds and flu virus.  They get their treatment, and the cost of that treatment is passed on to the rest of the covered people.  Wait times are measured in hours in most cases.

America currently does offer some government subsidized insurance programs.  These include: Healthy Families, MediCare, and state coverage like California’s MediCal.  People who fall within certain income levels get free or discounted medical care.

Canada:

Canada offers a sort of hybrid system.  The medical practitioners (doctors, nurses, etc.) are in the private sector, and are not government employees.  But Canada’s laws state that Canadians must receive medically necessary care free of charge to the patient.  In essence, Canadians pay taxes so that they don’t have to pay when they go to the doctor.  Because there is free health care, Canadians have to wait in line longer than Americans do to get to quality care.  Many Canadians actually plan trips to the United States where private medicine is both more readily available, and of a better quality than they can get at home.  Wait times can be days to weeks.

United Kingdom:

Probably the best illustration of modern, socialized medicine is that of the United Kingdom.  In England, a patient sees their primary physician for free.  If any medical problems present themselves, the doctor will contact hospitals within the national network to see if any hospitals can see the patient.  The hospitals judge the urgency of all cases compared with each other.  This greatly extends wait time for weeks from a primary appointment to seeing a treating physician.

In both cases of Canada and the United Kingdom, private insurance is growing because of the extensive wait times.  The citizens, many of whom are used to a socially provided medical system, are willing to pay the extra money in order to guarantee they will be seen by a professional in a reasonable amount of time.

So, if countries that have had socialized medicine are running away from it, should we run towards it?

Sometimes, I drive by the local DMV and see just how efficient government control can be.  I don’t like waiting in lines to renew my license, and I’m pretty sure I wouldn’t like waiting in even longer lines to determine if I were sick enough to be seen by a government doctor any better.

As to the argument that more people would be covered, I look at it like this.  EVERYBODY gets to ride the bus.  It generally sucks.  Not everybody gets to drive a car.  Driving is significantly better.

I’m worried that the government is going to, once again, get involved where it doesn’t belong.  I’m worried that I will lose my insurance coverage because my company had been underbid by the government.  I’m more worried about all of the people younger than me who are going to be stuck in a government line at some hospital while they are dying of diseases that could easily be treated.

The moral here?  Don’t just back a stance because some charismatic authority figure tells you to.  Do some basic research and take nothing at face value.  Politicians lie.  Lobbyists lie.  Common sense rarely lies.  Stick with common sense.

Getting down to starting a business

A little over two years ago, I talked about some of the steps needed to become a SUCCESSFUL ENTREPRENEUR.  These tips presupposed that somebody had gone through all of the basic steps and are coming to the decision to start their own business.

During these tough times, with unemployment reaching double digits with no end in sight, many people are throwing their hat into the entrepreneurial ring and starting their own business.  Young people are encouraged to start their own businesses as an alternative to getting a job working for somebody else.  Sadly, the vast majority of these jobs will fail, and the people that started out with all the optimism will become disillusioned.

I have a very crafty friend (a friend that likes doing craft projects, not a friend who is particularly cunning), who is considering starting her own craft business.  I have a former sister in law who thought that she could avoid working at a real job by gluing the torso, limbs, and head of a teddy bear to a mason jar and selling the end result.  I have known several people who sold various products like Avon, Mary Kay, and other “home party” type products.  None of these friends or family members have succeeded in replacing the income that comes with a regular job.

So am I saying that one cannot succeed at starting their own business?  Of course not, that would be silly.  What I am saying is that starting a business isn’t like deciding to wear all black a la Johnny Cash.  If you accidentally wear some other color, nothing major is going to happen to you.  When you start a business, if you don’t dedicate everything to the business, for a long time, the business will fail.

The biggest reason why many of my friends failed was that they weren’t willing to dedicate themselves to doing what it takes to be successful.  Some of them never wanted to make their business a full-time venture.  Some of them just wanted a little extra pocket change, and some wanted the discount that comes with being a sales agent for a product, and others simply underestimated the amount of time required of them.

Another good reason they failed was because they didn’t have a clear idea of what they were trying to accomplish.  In my earlier mentioned post, I talk about what is needed (at the very minimum) to be a good business owner.  Some people think of their activity as a hobby that might pay for itself.    If that is all they want, that is fine.  Others believe that they will be able to survive on the income of their business.  This can be done, but not without a lot of hard work, and a long time of making no profits whatsoever.

So if you want to start your own business, go ahead.  Make sure you do the necessary research to make sure your business will be successful.  Some questions that you might consider:

• Is what I want to do something that people need or would be willing to pay for?
• Is my business unique enough to establish a niche, or am I going to wind up competing with larger, more established businesses?
• Can I survive without making any money for a long period of time?  This question is key.  When you have more than one source of income, you might be able to survive on only that income.  If you are putting all your eggs in the new business basket, you might need to rethink your timing horizon.
• Am I willing to keep at this business until it becomes successful, or am I going to dump it when I get bored or if I don’t see enough of a profit in a short amount of time?
• Is this something I really want to dedicate my life to, or am I just trying to avoid getting a more traditional job working for somebody else?
• Do I know enough about what I want to do for a business, or should I do a lot more research first.  I’ve said before, I like to read books, but that doesn’t necessarily make me a good candidate for opening my own bookstore.
• Do I have the support of my family, or am I going to have to succeed despite their wishes and feelings?  Some people thrive on thumbing their nose at the naysayers.  Others need to have validation and support of their family or they will fail.  Figure out which one you are.
• Am I disciplined enough to be my own boss.  Some people find that when faced with nobody telling them what to do, when to do it, or how to do it, that they wind up doing nothing.  This is not a recipe for success.

If you have started your own business, I want to hear from you.  Tell me about the business, the process you went through, and how successful it is so far.  Some of my friends have started out well enough, and I am always willing to throw a shout out to someone who is starting their own business.  Who knows, maybe the free publicity is just the ticket to boost you up to the next level of success!

Man Up!

I know it’s a juvenile taunt, but sometimes these two small words are the most appropriate response to the stupidity that has been taught to our young people.

I have a friend who is very young, who is trying to work hard and do right for his girlfriend and child. He is 19, I believe she is 18 (I’m not sure if she is or will soon be) and their child is less than a year old.

She doesn’t work (she is a stay-at-home-mom) who just got a diploma or GED.
She lives at home with her father, and my friend goes over often to spend time with his girlfriend and child.

The other day, my friend tells me that he is contemplating moving his girlfriend and child in to an apartment, and living as an adult couple. His brothers are planning on moving out of the apartment he lives in now, opening the way for the two girls to move in.

I asked my friend why the rush, since he is not working full time, and since she isn’t working at all. His response was that he didn’t like the way her father disrespects him. The father drinks, and is apparently not a friendly drunk. My friend admits to drinking as well, and you can imagine what happens when you get two drunks with a good reason to dislike each other stuck in close quarters.

I’ll deal with the financial issues later, but let’s look at the social issues first. I’m not a father, but I’ve known many fathers in my life. I recognize the look in a father’s eye when he is looking at the boy who either has already, or plans to take something irrecoverable away from his little girl. I also know that many girls seek a mate that reminds them in some way of their father. After all, their father was the first man that they fell in love with. He was their first protector, provider, and idol.

“Mother is the name for God in the lips and hearts of little children.”

I’ve always liked this quote by William Makepeace Thackeray, ever since I heard it in The Crow, in 1994.  I believe this is true for most children, but I think that in the minds of little girls in particular, Father fits the bill a little better.

So what we have is a young boy that has impregnated this man’s daughter, coming to this man’s house, eating his food, drinking his alcohol, and in some cases, smoking his cigarettes.  This boy seems to want to be trying to take this man’s place, and nobody wants to see that happen to themselves.

Let’s assume that the father is justified in drinking, and is a generally decent guy.  Where has my friend demonstrated that he has earned the respect of his girlfriend’s father?

Now, for the financial issue.  Especially in these current times of economic depression, people need to be careful whenever they endeavor to change their personal situations.  Moving in two other bodies that you have to pay for without changing your financial intake is suicide.  Worse, having talked to my friend I have heard his plan, and it all revolves around her taking welfare, food stamps and his continuing to work making at least the same salary as he is now.

While the current administration speaks to wanting to expand welfare, the truth of the matter is, welfare programs need to be paid for somehow.  With increasing unemployment, there are fewer taxpayers out there who can afford to pay for these programs.  The inevitable result is that these programs will end, or be severely curtailed.  That is sad, for there are some people who are genuinely needing and deserving of these programs, but that is the reality.  As far as his salary, I would hope that it would increase, but with rising unemployment, and more companies having to result to lay-offs of staff, he is a prime candidate to be laid off.  This put his family in a spot of not having any income, but still having to care for his girlfriend and daughter.  When I pointed this out to him, he asked my advice.

“Man up!”

I told him that he was biting off much more than he could chew by contemplating moving his girlfriend and daughter in with him on their own.  Since he (and she) made the choice to engage in activity that resulted in the creation of another life, his priorities had to change.  Her priorities needed to change as well.  I advised him to stop drinking because his daughter was counting on him to be a role-model for her.  His behavior today will determine the man she will someday bring home.

My friend has put himself in a bad spot, and has condemned both his girlfriend and daughter to a life where they will struggle to achieve in life.  Their spot isn’t hopeless, but they need to be careful.

As for everybody else, I understand that when you are “making babies”, your mind is usually occupied on things other than thinking of the financial impact of your actions.  This means that you need to think of the realities of life before engaging in risky sexual acts.  As far as housing expenses, no more than 30% of your income should be dedicated to housing.  Remember, in addition to rent, you have utilities, insurance, food, clothing, and many other expenses, some that you won’t foresee ahead of time.  Of course, if you ignore prudent thought and planning, the only thing you can do about it is to man up, put aside your own dreams and desires and do what is right for the life you have created.

Just a note on the term, “man up”.  Since my friend is a male, the term is accurate.  If my friend were female, I suppose my advice would be to “woman-up”.  What I’m saying is that I’m not making a gender-based comment, but the subject of my comment fits into one gender.  So don’t send me emails about the sexism in using only male terms.  Believe me, I’m not against calling out my female friends when they do something that reflects poorly on their gender.

To the class of 2009: We’re sorry!

Once again I find myself apologizing for not being able to post.  Circumstances that are beyond my control have conspired to make it difficult to post recently.  First, my computer had decided that it is ready to retire to Boca.  Second, I have been ill with what feels like a biblical plague, but is probably just a strong cold, or even a couple of different colds.

There was a third reason as well.  Around this time each year, I give an address to graduating students.  Generally, I try to keep the tone upbeat.  After all, this is the greatest time of some people’s lives.  I try to pass out platitudes and truths in equal portions, passing on some ideas for young people to do before their lives limit opportunities.  This year is a little different because the world is a decidedly scarier place than I have ever seen it.

This year, we have seen hatred, bigotry, and ignorance trump personal opinions and beliefs in the case of (former) Miss California Carrie Prejean.  Just yesterday, the aforementioned ignorant bigots finally won by having Miss California lose her crown for having personal beliefs.  Perez Hilton must be giggling into his Pinkberry.

This year, we have seen poor judgements and decisions rewarded by the government and prudent choices punished.  The housing fiasco is still in full swing right now because certain people in the federal government lied, obfuscated facts, and abused the trust that we as Americans have given them.  Not only were Chris Dodd and Barney Frank not run out on a rail, but they both still have a lot of influence over the economy.

This year, many Americans put personality before substance, and a good man is in a job that he is woefully underprepared for.  The problem is, there are no do-overs.  He bit off more than he can chew, and we get the bellyache.

This year, we have seen the results of cronyism, where almost one out of every ten Americans who are looking for work are unemployed, while a tax cheat runs the IRS.

This year we learned the concept of  “too big to fail”.  It sounds good until you realize that too big to fail also means too small to succeed for everybody else.

This year, because of many of the above mentioned choices, unborn children of unborn children will be paying for mistakes we adults have made.

So you can see, there is precious little that is encouraging to perk you up.  But, since when does that matter?  See, the good side is that you are going to be in charge at some point in the near future.  You don’t have to make the same mistakes we are making today.  You can do what my parents and their parents have tried to do.  You can make the world a better place for your children than it was for you.

1. Up till now, people in positions of authority have expected you to do as you were told without question or comment.  When you get into your career, many will expect you to do so as well.  Once in a while, when something doesn’t make sense, question somebody.  Do so in a respectful manner, and listen to whatever justification you are given, but don’t go away without an answer that satisfies you, even if you disagree with it.
2. Take a stand.  Just like Miss Prejean took a stand (that the President, Vice-President, and the majority of Americans share), that ultimately cost her a job, you need to find something that you are so passionate about that you would give up everything else in your life for.  Don’t waste that kind of comittment on something that is not worthy.
3. Be active.  In your community, in your family, or somewhere else.  Don’t blend into the walls, but stand out (in a positive way) and make people take notice.
4. Don’t let them see you coming.  Do something out of character when the opportunity presents itself.  I’m not saying do the wrong thing, or the bad thing, but sometimes you just have to do something different.
5. Read a book that you had to read in school, but this time read it just to enjoy it.  Some of those books were pretty good if they weren’t screwed up by having you try to find all of the plot devices.
6. Drive a really powerful, “cool” car once.  With many of the laws that are coming out, you might not be able to later.
7. Play like a kid once in a while.  Run like you’ve never run before.
8. Make your own list of Qualities of Success and start following them.  This list can be a work in progress.  When things work, keep them, but if they don’t– dump them.
9. Learn to cook one dish from scratch really well.  As you start your life on your own the temptation will be there to eat “convenience food”.  Sometimes, this is okay.  But if you can cook one dish really well, you can always treat yourself, or impress someone you might want to impress.
10. Don’t focus on the first part of this post.  While all of it is true, right now there is little you can do about it.  Enjoy this time because it might be the best time of your life.  You only graduate once or twice in your life.  This first one is the most important one because this is also the start of your adult life.

They got me!

Even experts will occasionally make a mistake, or do something that is contrary to their teachings. Sometimes this transgression leads to the downfall of the expert, and others it is just a footnote that is humorous. We’ll get to that one a little later.

First, an update on my friend with the car problem. LAST WEEK I told you about a friend who made several mistakes in the purchase of a vehicle.  I talked to my friend again over the weekend, and he was able to unwind the deal.  Essentially, he came out ahead.  He was able to use the car for a couple of weeks for free.  Now he has his money back and the seller has his car back.  My friend learned a few lessons with this transaction, and has stated that he will be smarter in the future.  Score one for the good guys!

Secondly, I consider myself to be a fairly shrewd consumer.  I rarely fall for gimmicks or shiny distractions.  Last week was one of those times where I fell for the gimmick.

I bought a CD on Amazon of a comedian that my wife and I enjoy.  His music is pretty explicit, but for adults I think he is pretty funny.  When I was placing my order, I got to the checkout and they said if I ordered something like $6.00 more, I could get free shipping.  Who can resist free shipping, right?  So I ordered a DVD of a web series that I really enjoyed.  I got my free shipping, and two items that I really wanted.  Then I saw that the shipping would have been about $3.00 give or take.  Arrgh!  The got me!

Now let’s look rationally at what happened:  I bought two items that I probably would have bought anyways.  I saved about three dollars.  Is it a little frustrating that I fell for the trap?  Sure, but there are bigger deals in the world.  I personally don’t think falling for this is anything more than a humorous footnote to a long history of doing the “right” thing.

What’s the lesson here?  From time to time, you will make financial mistakes.  Just like every dieter cheats occasionally, and just like people who are trying to kick any habit, you will slip up.  You have the choice of letting a one-off define your future, or of laughing it off and realizing that you probably shouldn’t fall for that one again.  Too often, young people come to me and throw their hands in the air in frustration because they made a mistake and feel that they can’t overcome the mistake.  This is rarely true.  Mistakes will happen.  Worry when you keep making the same mistake after recognizing that a mistake has been made.  Don’t worry about isolated incidents, or even a pattern that you have successfully broken.  Life is too short.