Biotech Values

[Jonathan Robinson]

In general, the government spending would not be as big a problem as is being made out EXCEPT for the fact that healthcare spending overall to GDP keeps rising. And even then, as long as good jobs are being created, and there is a basic safety net (not more extensive coverage as desired by the Democrats which would drive up spending even more), the US can probably handle it. It will require higher taxes and higher user fees, however, which can mostly (again except for the overall growth relative to GDP) be paid for by reduced direct personal spending. It will introduce government rationing to some extent as well as restrictions on doctors (many won't take Medicare) and SOON, government price controls on drugs (even though they are only 10% of costs directly and maybe 15% overall when hospital and other non-direct drugs are added).

Jon