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Freedom Fighters' Elizabeth MacDonald, Carl Jeffers and Dan D’Amico debate the existence and cause of food inflation.
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It's a first for the Medicare program starting in July it will begin tracking how much is spent per recipient.
Hospitals that keep patient cost low will be rewarded while those -- high patient -- we'll have some of their Medicare money taken away.
There's perhaps well intended plan like many ill advised government ideas assured I have some.
Unintended consequences.
When bean counters and desperately want government money start influencing how patients are treated.
Here to discuss my freedom -- Fox Business stocks editor and my colleague Elizabeth MacDonald.
Democratic strategist Carl Jeffers and -- of New Orleans university professor -- Demeco.
Candy you first how how bad is this gonna get -- the mentality that runs the post office.
We'll be telling positions the medications the procedures.
And the and the tests that they can employ on their elderly patients.
I think that's the right way to look at -- judge I mean it's not it's probably not the worst plan.
-- ever Prague govern over our health care system but the idea that.
Any individual -- from Washington can design a mathematical formula to produce and distribute the medical resources for.
Our country as diverse and unique as that you've done -- health care needs of different people are is just pure hubris.
I mean call me crazy but I think that doctors and patients are the people who define quality the best for themselves.
Carl even a liberal Democrat like -- to agree with that doctors and patients should decide I'm medical care rather than faceless nameless bureaucrats in windowless rooms -- basement offices in Washington DC and trying to get on the skin.
Robin -- it -- -- they had said call me crazy fine I'm gonna do that right now because what you got the bad is it right job to get on in my scan judgment.
What about the guys dorm if it's taking this to -- -- the doomsday liable.
I think what is what they'll watch and crops of this proposal.
Is that we should have.
Have a better tracking and monitoring of the services and of the costs and expenditures it's not saying that we're going to take away the decisions about those expenditures and services from the doctors it -- we're going to keep track -- them.
-- -- and those who have supported up every form.
Had said that I want the way we can save money is by car that won't wait I thought about the argument and those who are opposed to weather also make the market.
About a billion is it -- it isn't Karl destroying his own argument isn't the unintended consequence of this that bureaucrats will say.
You are spending too much money -- mrs.
MacDonald our our mr.
Jeffers in Europe are running too many tests not because we're second guessing.
Your medical judgment but because we don't want you to spend that money.
Kelly that was been an idea that was that came out of the Clinton health reform under the Kerry health reform plan in 04 and it was a bipartisan plan to do just that -- 05.
Judge I don't -- I want taxpayer money to be protected I want to stop.
Waste in and fraud in Medicare I want that to happen.
But what we're talking about is -- fifteen member advisory panel that is unelected that'd be equivalent to the Federal Reserve board deciding on what is gonna happen in an economy part of economy that's the -- -- Great Britain can only hope that Medicare or the federal health plan.
We'll be able to cover the back -- in the contortions -- that bureaucrat -- -- to define things like efficiency because that's what it comes down.
And isn't this the inevitable result of government financing health care that government.
Not medical personnel -- the government but bean counters and the government.
Will supersede the decisions of patients and and positions that's the worst of all circumstances is it not.
I think I think you're absolutely right judge and the other thing to recognize here's the process of feedback I mean medical industries up fast paced high innovation market.
And the fact of the matter is that subjecting these processes the politics.
Means that at best we can update the model that we use every for her however many political cycles it takes.
This -- that these proposals is a problem of planning not the problem of any particular plant.
-- which is more efficient I -- the free market wanted to address is an issue or bureaucrats and politicians when they spend tax dollars on addressing that issue.
Well judges and were asking me a philosophical or intellectual question probably I've often times say the flea market.
But let me respond -- quickly I think that the reality is is that the average American as no more confidence and how the insurance companies are going to decide about services and the Anderson has the -- that's right it's received just a nice day rest then if that the Fed right and then I'm like yeah right that's -- any particular driver around -- that's right right -- price control.
-- by the insurance industry in a -- and however are.
Are betting -- I'm gonna give you one you make a good point on that we're gonna switch -- switch topics not because you want but -- doesn't add up revenue -- -- we leave.
The Federal Reserve cause a transitory.
But the international aid agency Oxfam.
And the UN food and agricultural organization say -- -- the UN global food prices for Staples like corn will double in twenty years.
So what exactly does the Fed think inflation is not a looming threat to -- why does the Fed think you can ignore something like all these international organizations are predicting food prices will double in twenty years.
Why -- the political wing is insulated from the effects of inflation insofar as people don't really feel it in their pocket -- when the prices of higher education the prices of houses go up.
People don't really recognize that it's systematic and economy wide.
Now -- only know how effective these cycles as the fact that finally food prices are going up but the other side of this quarter is that there are also being driven up not just by.
Inflationary tactics but it's part of the very real relative scarcity of food I mean all of these houses that we don't the no -- necessarily wants.
Came at the expense of consumer goods that we don't necessarily have right.
Assumption why is city -- that the Fed is so out of touch that it insists -- beautiful would be not in its.
Pricing structure when it decides whether or not inflation is happening or just refuses to recognize that food prices and.
You know I don't think -- -- the sense -- -- markets we do -- that led Fed Chairman Ben Bernanke said he it that he does think it's transitory does not think that -- to integrate the monetary policy does not affect food prices I have to say you have to focus on it when you have two to three billion more consumers coming -- -- -- the middle class in China and India you have.
You know gas prices going up yes that's a function of the dollar and also oil and Tibet supply Internet but -- -- gas made -- three core supporters the headline inflation never recently.
That can't be.
Or -- how can lead Federal Reserve ignore food and gas we all eat and almost all of us certainly -- out in California and a lot of people and fly -- country and most people on the East Coast except -- Manhattan drive cars and paid for gas.
Well we have.
Everybody -- he needs a healthy but -- -- that salads but.
But in other bid to really think the reality is Elizabeth Banks that as Italy and it makes an excellent point there because it it does tie into what I would suggest you.
That for this fourth century drilling for the last 200 years certainly in that sense the industrial revolution the last 150.
Years.
Are not crap has actually consume far more and food.
That any other country the world proportionate to its population what -- -- -- -- -- they -- -- the fact that that right because things have gone I mean she might need to do it.
So we had the money to do little.
Battle what would assume that it -- what -- -- -- the Federal Reserve ignoring food and gas prices look you can't because they know well you can't eat a computer you kidding it iPhone you can't even right ahead you have to eat food and you can't you can't answer your car with somebody would -- price -- you can't share -- -- -- we had about thirty cents I'll give you the last word day and the Federal Reserve ignoring reality go ahead.
I think that these are are are more than just inflationary price increases but they are with the result the Fed policy every dollar that we spend.
The increasing capital production by by means of low interest rates is a dollar that we're not spending our consumable goods its Austrian theory -- powered.
And and answer that quantitative easing the Fed to valuing the price of money food being purchased -- dollars bingo.
Nobody else -- are not set by US dollars -- had to do with weather events and other events have got to know thank you Dan the mood music -- I -- -- -- joining us David so the next time.
Back with the -- through.
