Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
CoronaVirus Pandemic Day 76 Trend Forecast Update - Infected 540k, Minus China 1715, Deaths 4920 - 23rd Feb 20 -
Ways to Find Startup Capital - 23rd Feb 20
Stock Market Deviation from Overall Outlook for 2020 - 22nd Feb 20
The Shanghai Composite and Coronavirus: A Revealing Perspective - 22nd Feb 20
Baltic Dry, Copper, Oil, Tech and China Continue Call for Stock Market Crash Soon - 22nd Feb 20
Gold Warning – This is Not a Buying Opportunity - 22nd Feb 20
Is The Technology Sector FANG Stocks Setting Up For A Market Crash? - 22nd Feb 20
Coronavirus China Infection Statistics Analysis, Probability Forecasts 1/2 Million Infected - 21st Feb 20
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Trump Can Fix US Economy by Embracing Biotech

Economics / BioTech Nov 21, 2016 - 06:26 PM GMT

By: John_Mauldin

Economics

BY PATRICK COX : The presidential campaign made one fact very clear. Most of the media and public aren't focused on economic growth.

Growth powers and funds everything else. Just take a look at the enormous federal deficit and you’ll see that economic health keeps taking a back seat to short-term goals.

Yes, John Maynard Keynes made a case for using debt to stimulate the economy. But he never said anything about permanent deficits. And that is our current practice. The result is that taxpayers’ options will be curtailed in the future.


Worse, money that would have gone into investments will be used to pay down debt. The result is less job creation, less innovation, and a stagnant economy.

The first impulse of many politicians when looking at the debt is to raise taxes. But that means taking capital from the private sector, which reduces investment and economic growth.

Presidents Kennedy and Reagan took a different approach. They fixed stagnant economies by lowering taxes and reducing economic barriers to growth.

JFK and Reagan didn’t have Trump’s big problem

Trump has brought top deficit hawk policy experts into his Administration from the Heritage Foundation. They have some sobering news. Social Security will be insolvent in 2033 but could fail by 2024. And that would begin a cascade of crises, each worse than the last. A lot of people stand to lose a lot of money.

Trump has said that he will keep the promises the US has made to the aged. His team intends to do that by duplicating the economic miracles of JFK and Reagan. But I’m not convinced that it will work. Tax cuts and deregulation may not be enough to prevent a major systems failure. Why? The US faces a new challenge that it has never had to deal with before.

I’m not talking about a $20 trillion debt or even the staggering $200 trillion in unfunded entitlements. I'm talking about the demographic transition.

Americans are living longer than ever before, and births are below replacement rate. The result is a decrepit age dependency ratio. This is the ratio of younger workers to older recipients of transfer programs like Social Security, Medicare, and pensions.

Last year, the CBO stated that the factor responsible for raising the cost of government is aging and age-related disease. Former Fed chief Alan Greenspan now sees this reality and has abandoned his trademark optimism.

Greenspan says that the West’s feeble economic growth is caused by the “crowding out effect” created by growing entitlement spending for the aged. More to the point, it is the mandated 9% increase in entitlement spending needed to fund programs for an increasingly older population. “It has got nothing to do with the economy,” he says. “It has got to do with age and health and the like.”

I hope that Trump’s economic policies work, but I have to agree with Greenspan. These issues can’t be solved using traditional policy tools alone. The only way to fix the problems of “age and health” is to tackle them directly.

My fear is that even the best economists have trouble thinking outside of their field. As Maslow said: people who rely on hammers think all problems are nails.

Trump needs to look to biotech

Macroeconomists may accept that we could fix our age dependency ratio “if only there were some miraculous anti-aging compounds.” But it’s unlikely that they realize these compounds exist in labs right now.

Scientists in major research universities have developed anti-aging therapies that really work, even if you’re already old. There are other biotechnologies that will end most cancers. And still others that will make viral diseases (like Zika, influenza, and herpes) harmless.

When deployed, these biotechnologies will increase health spans by decades. This could fix our economy and pay off the debt.

But our national priorities are not focused on the problem of aging. And if this doesn’t change soon, aging will destroy the entitlement programs that the elderly depend on.

When that happens, politicians will finally turn to biotechnology. Then they’ll bulldoze the bureaucratic roadblocks that have kept anti-aging biotechnologies from consumers.

My guess is that it won’t happen during Trump’s tenure because it’s just too easy just to kick that can down the road yet again. Still, I can’t help but hope that I’m wrong.

Stay in the Loop on Life-Extending Research with Patrick Cox's Tech Digest

This weekly newsletter by biotech expert Patrick Cox highlights research that is much more advanced than most people know, and the profit potential for investors is vast. Read about the latest breakthroughs—from new, non-invasive cancer treatments to age-reversing nutraceuticals and vaccines that kill any virus–as well as the innovative companies that work on them. Get Tech Digest free in your inbox every Monday.

John Mauldin Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules