A $1,000 Pill in the United States Costs $4.29 in India

As reported in BusinessWeek magazine (January 11-17, 2016 edition) the treatment for Hepatitis C in the United States by Gilead Science’s Sovaldi costs $1,000 a pill or $84,000 for the entire treatment. However in India the same medication is being manufactured by an Indian company as a generic with another name but is the same medication. The cost is $4.29 per pill.

Some medicines are sold in Canada for one-third (1/3) the price that Americans pay for the identical product. Aciphex and Dexilant are among that group.

Senator Bernie Sanders has spoken repeatedly about our broken health care system that does not provide health care for everyone. Medicare is not permitted to negotiate with pharmaceutical companies but must pay the rates those companies set.

Why hasn’t our congress addressed these issues? The simple answer is that pharmaceutical companies have the lobbyists who influence our representatives and provide the funding for re-election.

No matter who is elected president in November 2016 it is a good bet that this situation will not be changed in any significant way as long as we keep sending the same congress representatives and senators back to Washington.

The Countries with the Most Millionaires

Senator Bernie Sanders is correct when he says that 1% of our citizens control more wealth than the bottom 90%. A new report posted on cnn.com references an English company named Oxfam estimates that the richest 1% will have as much wealth as the other 99% combined by next year. Just Google these words: “does 1% of Americans own 90% of the wealth” and you will find numerous web sites that confirm the Sanders contention. The United States is the overwhelming home of millionaires.

From Forbes Magazine date October 15, 2015

“The United States has the world’s biggest millionaires club by a huge distance. No other country comes even close to matching it. According to Credit Suisse Global Wealth Report, the U.S. was home was home to 41% of the world’s millionaires in 2014, and its share grew by 46% in 2015.”

“Wealth has risen has risen in the U.S. for the seventh year in succession and the U.S. millionaire population now stands at 15/7 million, according to the report. The United Kingdom comes a distant second at 2.4 million, while Japan rounds of top three countries with a population of 2.1 million.”

Countries with the most millionaires

This situation probably explains the ever higher costs of living in NYC, San Francisco, and Los Angeles.

So should we vote for Mr. Sanders based upon these facts? My response: 1) what would he do to change this reality? 2) Is this situation a bad thing?

Vermont Sen. Bernie Sanders for President of the United States

Bernie Sanders

A self-avowed socialist and long serving Independent, Senator Bernie Sanders seems to hold views that coincide with mine on so many issues.

Among his proposals, Sanders calls for free college tuition, a $1-trillion program to rebuild the nation’s roads and bridges, government-run healthcare, higher taxes on the wealthy and publicly funded elections to reduce the influence of the country’s rich donors. He would break up the nation’s big financial institutions, and he opposes trade agreements, like the Trans-Pacific Partnership that President Obama is pushing, which Sanders says have punished workers by shipping jobs overseas.

We are living in a global society and that changes everything for the United States. Wages in Indonesia are as low as 50 cents an hour. Wages in China and the Philippines are about $2.50 an hour. Mexican wages are about $5.50 an hour. Those people aren’t stupid. They just earn less than Americans. We need to make our country the “go to” place for products and ideas that the world wants. To accomplish that goal we must provide a better educated society with the infrastructure to compete.

Social issue solutions, even if they can be found, will not make America more successful in the 21st century.

Senator Bernie Sanders is An Outstanding Candidate for President

Senator Bernie Sanders is viewed by many as a communist or at the very least a socialist.  Read his 12 initiatives below and tell me who would disagree with his ideas.

I am looking for a presidential candidate that will provide a set of ideas or goals that are achievable.  Senator Bernie Sanders, the independent from Vermont who caucuses with the Democrats has offered his goals in an easy to understand declaration.  I agree with his goals.  Despite what others may call him, I identify him as a real progressive who wants to help the poor and middle live better lives.  Both the Democrats and Republicans should co-opt these ideas. 

Following is a copy of his 12 initiatives to help America’s middle class.

Bernie SandersThe American people must make a fundamental decision. Do we continue the 40-year decline of our middle class and the growing gap between the very rich and everyone else, or do we fight for a progressive economic agenda that creates jobs, raises wages, protects the environment and provides health care for all? Are we prepared to take on the enormous economic and political power of the billionaire class, or do we continue to slide into economic and political oligarchy? These are the most important questions of our time, and how we answer them will determine the future of our country. The long-term deterioration of the middle class, accelerated by the Wall Street crash of 2008, has not been pretty. Today, we have more wealth and income inequality than any major country on earth. We have one of the highest childhood poverty rates and we are the only country in the industrialized world which does not guarantee health care for all. We once led the world in terms of the percentage of our people who graduated college, but we are now in 12th place. Our infrastructure, once the envy of the world, is collapsing. Real unemployment today is not 5.8 percent, it is 11.5 percent if we include those who have given up looking for work or who are working part time when they want to work full time. Youth unemployment is 18.6 percent and African-American youth unemployment is 32.6 percent. Today, millions of Americans are working longer hours for lower wages. In inflation-adjusted dollars, the median male worker earned $783 less last year than he made 41 years ago. The median woman worker made $1,337 less last year than she earned in 2007. Since 1999, the median middle-class family has seen its income go down by almost $5,000 after adjusting for inflation, now earning less than it did 25 years ago. The American people must demand that Congress and the White House start protecting the interests of working families, not just wealthy campaign contributors. We need federal legislation to put the unemployed back to work, to raise wages and make certain that all Americans have the health care and education they need for healthy and productive lives. As Vermont’s senator, here are 12 initiatives that I will be fighting for which can restore America’s middle class.

1. Rebuilding Our Roads

We need a major investment to rebuild our crumbling infrastructure: roads, bridges, water systems, waste water plants, airports, railroads and schools. It has been estimated that the cost of the Bush-Cheney Iraq War, a war we should never have waged, will total $3 trillion by the time the last veteran receives needed care. A $1 trillion investment in infrastructure could create 13 million decent paying jobs and make this country more efficient and productive. We need to invest in infrastructure, not more war.

2. Reversing Climate Change

The United States must lead the world in reversing climate change and make certain that this planet is habitable for our children and grandchildren. We must transform our energy system away from fossil fuels and into energy efficiency and sustainable energies. Millions of homes and buildings need to be weatherized, our transportation system needs to be energy efficient and we need to greatly accelerate the progress we are already seeing in wind, solar, geothermal, biomass and other forms of sustainable energy. Transforming our energy system will not only protect the environment, it will create good paying jobs.

3. Creating Jobs

We need to develop new economic models to increase job creation and productivity. Instead of giving huge tax breaks to corporations which ship our jobs to China and other low-wage countries, we need to provide assistance to workers who want to purchase their own businesses by establishing worker-owned cooperatives. Study after study shows that when workers have an ownership stake in the businesses they work for, productivity goes up, absenteeism goes down and employees are much more satisfied with their jobs.

4. Protecting Unions

Union workers who are able to collectively bargain for higher wages and benefits earn substantially more than non-union workers. Today, corporate opposition to union organizing makes it extremely difficult for workers to join a union. We need legislation which makes it clear that when a majority of workers sign cards in support of a union, they can form a union.

5. Raising the Wage

The current federal minimum wage of $7.25 an hour is a starvation wage. We need to raise the minimum wage to a living wage. No one in this country who works 40 hours a week should live in poverty.

6. Pay Equity

Women workers today earn 78 percent of what their male counterparts make. We need pay equity in our country — equal pay for equal work.

7. Making Trade Work for Workers

Since 2001 we have lost more than 60,000 factories in this country, and more than 4.9 million decent-paying manufacturing jobs. We must end our disastrous trade policies (NAFTA, CAFTA, PNTR with China, etc.) which enable corporate America to shut down plants in this country and move to China and other low-wage countries. We need to end the race to the bottom and develop trade policies which demand that American corporations create jobs here, and not abroad.

8. Cutting College Costs

In today’s highly competitive global economy, millions of Americans are unable to afford the higher education they need in order to get good-paying jobs. Further, with both parents now often at work, most working-class families can’t locate the high-quality and affordable child care they need for their kids. Quality education in America, from child care to higher education, must be affordable for all. Without a high-quality and affordable educational system, we will be unable to compete globally and our standard of living will continue to decline.

9. Breaking Up Big Banks

The function of banking is to facilitate the flow of capital into productive and job-creating activities. Financial institutions cannot be an island unto themselves, standing as huge profit centers outside of the real economy. Today, six huge Wall Street financial institutions have assets equivalent to 61 percent of our gross domestic product – over $9.8 trillion. These institutions underwrite more than half the mortgages in this country and more than two-thirds of the credit cards. The greed, recklessness and illegal behavior of major Wall Street firms plunged this country into the worst financial crisis since the 1930s. They are too powerful to be reformed. They must be broken up.

10. Bringing Health Care to All

The United States must join the rest of the industrialized world and recognize that health care is a right of all, and not a privilege. Despite the fact that more than 40 million Americans have no health insurance, we spend almost twice as much per capita on health care as any other nation. We need to establish a Medicare-for-all, single-payer system.

11. Ending Poverty

Millions of seniors live in poverty and we have the highest rate of childhood poverty of any major country. We must strengthen the social safety net, not weaken it. Instead of cutting Social Security, Medicare, Medicaid and nutrition programs, we should be expanding these programs.

12. Stopping Tax Dodging Corporations

At a time of massive wealth and income inequality, we need a progressive tax system in this country which is based on ability to pay. It is not acceptable that major profitable corporations have paid nothing in federal income taxes, and that corporate CEOs in this country often enjoy an effective tax rate which is lower than their secretaries. It is absurd that we lose over $100 billion a year in revenue because corporations and the wealthy stash their cash in offshore tax havens around the world. The time is long overdue for real tax reform.

American Corporations try to Dodge U.S. Taxes

As more and more giant American corporations try to dodge U.S. taxes by moving overseas, Sen. Bernie Sanders on Friday, July 25, announced legislation to ban those businesses from receiving lucrative U.S. government contracts. Sanders said that he will file an amendment to a Department of Defense authorization bill to prohibit the U.S. government from awarding federal contracts to companies that reincorporate overseas to avoid paying U.S. income taxes.  “I have a message for these corporate deserters: You can’t be an American company only when you want corporate welfare from American taxpayers or you want lucrative contracts from the federal government. If you want the advantages of being an American company then you can’t run away from America to avoid paying taxes.”

Sanders announced the legislation on the same day pharmaceutical giant AbbVie said it plans to take over Shire, its European rival, in a merger that would allow the Chicago-based drug maker to reincorporate in Britain and lower its effective U.S. income tax rate from 22 percent to just 13 percent by 2016.

Walgreen’s, the giant drugstore chain, recently announced that it is considering moving its corporate headquarters from the U.S. to Switzerland to avoid $4 billion in U.S. taxes over the next five years.  According to a recent report from Americans for Tax Fairness, nearly a quarter of Walgreen’s $72 billion in sales last year came from Medicare and Medicaid.

At least a dozen other major companies are considering abandoning America through a loophole in the tax code known as corporate inversion.  Such inversions allow U.S. companies to move their corporate headquarters overseas by merging with a foreign company in a low-tax country, even though most of their profits and sales occur in America.

Sanders last year introduced the Corporate Tax Dodging Prevention Act (S.250) that would prohibit these companies from receiving tax breaks by shifting their headquarters to the Cayman Islands and other offshore tax havens. That bill would also stop rewarding companies that ship jobs and factories overseas with huge tax breaks. The Joint Committee on Taxation has estimated in the past that the provisions in this bill will raise more than $590 billion in revenue over the next decade. Nearly two-thirds of the companies who have established subsidiaries in tax havens have registered at least one in Bermuda or the Cayman Islands, according to a June 2014 report from Citizens for Tax Justice.

Companies that have received billions in corporate welfare and have made billions in profits should not be allowed to renounce their U.S. citizenship to avoid paying U.S. taxes,” Sanders said.

Too Big to Fail, Too Big to Exist

When the Federal government rescued the banking industry in 2008 there were 734 banks involved according to CNN.  The list is here.  You may recall that the idea of bailing out the banks was based upon a proposal submitted by then Treasury Secretary Henry Paulson near the end of the Bush administration.  Initially the proposal was rejected by the congress.  After the stock market took a significant drop the proposal was passed.  Many people, primarily Republicans, opposed the bail out.  Many condemned the idea of “too big to fail.”

This past April 9 Congressman Brad Sherman (CA – D) and Senator Bernie Sanders (VT – I) introduced bills in both houses to define too big to fail financial institutions with the purpose of breaking them into smaller units that could fail without impacting the country.

There are no cosponsors to these bills.  According to govtrack.us there is a 2% chance the proposal will get past a committee review and a 0% chance of enactment.

So where are all the indignant people who voiced their dismay in government bailouts?

I am not a reporter and I do not have the resources to walk through the offices of senators and congressional members.

This lack of concern does tell us that on camera pronouncements mean nothing.

What will happen when the next bank failure occurs?