WE ARE MOVING TOWARD A NEW KIND OF GROWTH

(From Tor Dahl & Associates - www.tordahl.com )


The industrial revolution started with James Watt's invention of a
commercially viable steam engine in 1776.

Over the roughly one million years of human development, the industrial
age constitutes only 233 years. Were we to force that time span into 24
hours, we would only have been industrialized for 20 seconds.

In nature, it seems that everything either grows or dies. But nature is
not simple. Farmers know that for a field to regenerate, it must be
allowed to fallow. For the farmer, fallowing forsakes current income in
order to produce higher future yields. That is actually a definition of
investment. The problem is that we confuse no-growth fallowing with lack
of progress - because continuous growth has also become synonymous with
progress in the public mind.

But much happens during fallowing. Farmers plow the ground so that weeds
can be brought to the surface and removed and the soil structure
improved so that it can better absorb water and nutrients. Earthworms
enrich the soil, microorganisms flourish, and when the fallow field is
planted again, rising yields more than compensate for the pause.

For 235 years, we have harvested more from the Earth than we did over
the entire period prior to the industrial revolution. We have learned
some important lessons from that experience:

1. Not all growth is good for us.

There used to be abundant water, abundant breathable air, abundant
fisheries, and abundant energy for our daily needs. New scarcities have
emerged relating to groundwater, fossil fuels, world fisheries and
recently, world harvests. And in many cities, breathable air is still
lacking.

2. New scarcities emerged because we have been consuming beyond our
means.

Starting in 1973 growth in wages fell below our growth in consumption.
Household debt between 1973 and today increased 13 times, government's
debt increased 20 times, but wages grew by only 1.86 times. We became
overextended, and the only way to finance the debt was by hoping for
continual increases in the prices of the assets that we had acquired at
a time when we thought we could afford them. The private savings rate
turned negative in 2005. Asset prices entered a free fall in 2007:
Prices of housing, stocks and commodities all dropped dramatically.

3. The economy was like a field that had been exploited without
pause. To meet our needs, we even consumed part of the seed corn: What
we should have invested, we consumed.

A real field is restored through fallowing. So is the real economy.
The pause that is now imposed on us forces the regeneration that is
needed.

How does a real economy fallow?

We see it all around us: People cook at home instead of eating out.
People are going to the library again. People are staying home rather
than vacationing in distant and expensive places. People are repairing
their shoes, mending their clothing, remodeling their homes, going for
walks, shopping at local farmers' markets, attending school at night,
staying healthy, postponing cosmetic surgery - maybe canceling it
altogether.

But does not all this make us poorer?

No. The Gross National Product is a poor measure of our wealth. The
early economists measured our wealth in satisfaction, and satisfaction
in the U.S. peaked in the fifties. Beyond the necessities of food,
clothing, shelter, education and health, satisfaction does not increase
with additional wealth accumulation. In fact, our current stress and
insecurities largely stem from the very possessions we accumulated at a
time when we lived beyond our means.

What is the New Growth referred to in the headline?

It will be a shift of focus from investing to meet human needs rather
than human wants.

There is no limit to human wants. Human needs, however, signal when
they are met. Meeting these needs often doesn't cost any money.

So - what are the human needs that also increase human capital? How can
we improve our yield of life satisfaction by forsaking excessive
consumption?

The first priority is to increase our ability to contribute both to the
satisfaction of others and to that of ourselves. This could happen
through serving as volunteers in organizations we support, learning new
skills, teaching others the skills we have, and helping people in need.

Then, take care of our own health so that we do not become a burden to
others: A healthy diet, long walks, attending to weight and blood
pressure, and dropping unhealthy habits would all do wonders for our
health.

Keep in mind that the eternal scarcities are time, space and human
interaction. An economist's advice to you would be to allocate your time
so that it maximizes satisfaction with life, organize your space so it
is not an obstacle to what you need to live, and be with people who make
you happy.

None of this is measured and included in the GDP. We have only the
vaguest idea of how much human capital we add to our collective wealth
each year.

But we know it when we are investing in our own human capital.

We know it, because we see how we can contribute more, how we can help
more, and how we can build a richer community life.

One day some bright scientist will find a good way of measuring our
increased capacity, our increased human capital, and make it visible to
all.

In the meantime, let the economy fallow for a while. Let us bring back
the sense of security of living within our means. For those who may be
laid off for awhile: Rethink what you most would like to do on this
Earth. Then start it. You will find a way. And for all the rest:
Find out how you can help!

During World War II, Norwegians were healthier than ever. They could
not buy tobacco, and sugar was in short supply. Refined flour was
severely rationed. But the ocean teemed with fish, vegetable gardens
flourished on city lots, and people picked fruit and berries to preserve
them for the long winters.

We certainly had become poorer measured in money. But I cannot recall a
time when the community was more united, friendships and will to
sacrifice were stronger, and ingenuity in making do with what we had was
more prevalent.

Now Norway is one of the richest countries in the world in per capita
income. Norway also has no government debt and owns the third largest
sovereign fund in the world. What could they work on now in that
beautiful and well-run country? Well, Norway ranks No.27 in freedom,
No.9 in safety, No.12 in justice, No.13 in competitiveness, and No.19 in
happiness compared to other nations.

It is a challenging agenda to make every citizen freer, safer, more
justly treated, more competitive, and happier. Economists can estimate
the wealth increase that will follow from moving forward all these
areas, except maybe happiness.

Happiness is elusive. It is summoned by reaching out rather than
turning inward. What we do for others is more strongly satisfying than
what we do for ourselves. From an evolutionary perspective, that is
what helps us survive as a species - whether it is barn raising on the
North Dakota prairie or fighting disease in Africa.

In our final hours we are not likely to focus on our possessions - we
shall probably think about what made our lives richer and more
fulfilling. We shall remember those moments when we experienced what
Thomas Hood described as 'a happiness that made the heart afraid'. We
shall visit memories of both happiness and sorrow, both victories and
defeats, and we might ponder how we could have lived an even better
life.

But if we have learned, and grown, and loved, and contributed, I know
the feeling we would all have: What a splendid ride! What a glorious
life!

But why did life put us through all these tests before we had learned
life's lessons? And could we not have learned those lessons before we
faced the tests?

I think we could have. That is precisely what would have changed our
lives, and the world, for the better.

How about acting on life's lessons now? Before it is too late?

.





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Tor Dahl & Associates
Productivity Improvement Seminars, Projects and Tools

HEALTH CARE REFORM/DENTAL CARE REFORM?

We have been hearing and reading about health care reform. I was talking to a 'wise old man' the other day and he stated that dental care is critically important to overall physical health care but it appears costs are escalating to the point that people cannot afford to 'pay upfront' for dental services so dental care is ignored.

Over 47 million are without health care insurance so over 47 million are without dental insurance. Millions more have health care insurance but do not have dental insurance.

Do we need to begin to think about DENTAL CARE REFORM ?

(you will hear more from the 'wise old man' in the near future-an engaging thought provoking individual)

MN Requirements for Electronic Health Care Remittance effective December 15, 2009

(From Minnesota Medical Group Management Association)

New state requirements for standard, electronic health care remittance advices effective Dec. 15

Exchanges between Minnesota health care payers and providers must be done electronically; reforms are part of effort to save $60 million annually

As of Dec. 15, health care group purchasers (payers) and providers in Minnesota must exchange remittance advices electronically, using a single, standard data content and format. The requirement is part of a first-in-the-nation law that state officials say will help save millions of dollars in health care administrative costs each year.

The requirement focuses on the electronic exchange of remittance advices, or RAs, which payers send to providers to explain the payment, adjustment or denial of billings. Earlier this year, Minnesota implemented similar requirements for the electronic exchange of other information between payers and providers, including health care billing claims and queries to confirm patients' health coverage and benefit levels.

The Minnesota Department of Health (MDH) estimates that when fully implemented, Minnesota's law requiring the standard, electronic exchange of these three types of routine health care business transactions will save the state's health care system more than $60 million per year.

The requirements are part of Minnesota's Vision, a set of broader statewide health reforms that aim to improve the health of all Minnesotans, the individual patient experience and the affordability of health care. "Electronic RAs will reduce the amount of paper flowing in the system and speed up millions of routine transactions to help reduce overall health care administrative costs and burdens," said James Golden, MDH Health Policy Division director and the state's health information technology coordinator.

The law applies to insurance carriers, including workers' compensation, auto and property-casualty carriers, as well as third-party administrators that are licensed or doing business in Minnesota. The regulations also apply to HMOs, the Minnesota Department of Human Services, which administers the state's Medical Assistance and MinnesotaCare programs, and other payers.

In addition, the law covers over 60,000 health care providers, including doctors, hospitals, dentists, chiropractors, pharmacies and others providing services for a fee in Minnesota and who are also otherwise eligible for reimbursement under the state's Medical Assistance program.

For further information about Minnesota's statewide health care e-billing initiative please go to www.health.state.mn.us/asa or contact the Minnesota Health Information Clearinghouse at 1-800-657-3793, or health.clearinghouse@state.mn.us.

A SUMMARY OF HEALTH CARE IN OTHER COUNTRIES

Belgium: Has a compulsory health care system based on the social insurance model. Patients have free choice of provider, hospital, and sickness fund. A comprehensive benefit package is available to 99% of the population. The federal government regulates and supervises all sectors of the program. It is financed through employer and employee contributions.

Canada: Known as the Canada Health Act, it is Canada’s federal legislation for publicly funded health care insurance. Its aim is to ensure that all eligible residents of Canada have reasonable access to health services on a prepaid basis, without direct charges at the point of services. It is comprehensive in its coverage, insisting that a province or territory must cover all insured health services provided.

Japan: Has a system of universal health coverage, however, there are criteria to how it is applied to any given individual. The factors are whether or not the person is working, visiting or a student, and age. There are two main systems and both have different subcategories. Basically, there is the National Health Insurance or there is the Employees’ Health Insurance. One must belong to one plan or the other.

France: Health system is an important aspect of the French social security program. As a result, everyone received protection through the program, regardless of age, gender, income, or state of health. In some cases, the person pays a part of the charges out of their pocket, but in the case of the needy, they pay nothing. The program is financed by employer and employee contributions.

Italy: Has a governmental medical service, which encompasses all citizens. There are three tiers to the program: national, regional and local. The program if financed through public resources (37.5%), employer (48.8%), and the balance from private payments.
Austria: Guarantees medical treatment in case of illness or accidents, if not covered by the accident insurance. While there are 94 insurers, they are not allowed to strive for profit. Every person has to be insured. It is based on the American system of managed care.

Britain: Put in place more than 50 years ago (after WWII), all citizens are entitled to have access to health care. Medical treatment by a doctor is free, with no co-pays or deductibles. Citizens can also choose a private insurance plan. More that 70% of the financing is paid through taxes.

Denmark: State-run health system. All financing, planning and management are fully subject to the authorities. The services area financed through taxes, and there is only one legal state-run insurance.

Germany: Has a system of compulsory health insurance companies that are responsible for compulsory health insurance, and are considered public corporations. Decisions are made by legislation. Everyone gets the same benefit.

Switzerland: Guarantees medical treatment for illness or accident, unless covered through accident insurance. Program is similar to Austria.

IF YOU HAVE VALUE-ADDED COMMENTS FOR ANY INFORMATION LISTED FOR A SPECIFIC COUNTRY, PLEASE SUBMIT YOUR COMMENT FOR REVIEW

HEALTH CARE REFORM? NOT REALLY

FDR wanted health care reform but decided social security was a more important issue. Since the time of the FDR administration, multiple attempts have been considered related to health care reform resulting in many 'minor' adjustments to address issues (DRG's anyone?). Unfortunately, no substantial beneficial change occurred that would benefit the citizens of the United States of America.

We are now in a position, decades later, to see substantial change regarding America's ability to provide access to health care for all citizens - or perhaps we were in a position to see positive change. Suddenly we are reading about issues that are not focused on health care reform or reform of the insurance industry. We are now reading not about a 'public option' to allow all citizens to be covered, but a watered down 'public plan,' but private insurers - not the government - would offer coverage. We are now reading not about coverage for pre-existing conditions, but an amendment to restrict insurance coverage of abortion. We are now reading not about coverage for elderly, but reductions in medicare/medicaid services. We have lost our focus.

Perhaps it is the hope of some to get 'something' passed and begin cleaning it up in future years. Perhaps it is the greed and ethical lapse in corporate American that has been transferred like a virus to the leadership in the United States Congress to place party ideology before the concerns of citizens of the United States. Former Vice-President Hubert H. Humphrey noted that the moral test of a government is how it treats those who are in the dawn of their life, its children; those who are in the twilight of life, its aged; and those who are in the shadow of life, its sick, needy, and handicapped. For a government that can neither educate its children, care for and sustain its elderly, nor provide hope and meet the needs of its infirmed, sick, poor, and disabled, is a government without compassion and a nation without a soul.

May we hope our nation finds it's soul.