My Short Career at Odo

Freshly graduated from the watchmaking school in Cluses in 1966, my first job in the trade took me to the Research and Develpment at Odo, in Morez, in the Jura region of France. 

At the time, this company manufactured electric clocks. Owned by the Odobez family that had lived in the area since the 17th century, it gradually came to watchmaking from farming and nail-making. 

Between 1660 and 1800, the Odobez family crafted mechanical parts during the winter months and in 1806, Jean-Baptiste Odobez, aka "Jean le Comtois"—emerged as a master local watchmaker. 

In 1843, François-Désiré Odobez, succeded him, perfecting the iron-cage movement used in the so-called “Comtoise” clocks; then, in 1885, the firm "Odobez Père et Fils" was established in Morez to manufacture timekeeping instruments. What became the Odo company was founded in 1920 by Léon Odobez’s sons, André and Roger, in partnership with the Moret-ès-Jean Barbaud family. Together, they industrialized production and modernized the enterprise. 

Odo’s golden age spanned the period from 1930 to 1970. In 1931, the famous Odo chime clock was launched—a timepiece that would find a place in countless French households. It was a tremendous commercial success. It was followed in 1937 by the "Gai Carillon" (Joyful Chime); Odo had commissioned Vincent Scotto—a highly popular composer of the era—to create a unique melody to distinguish their clock from the Westminster chime. It turned out to be a stroke of marketing genius. 

Incidentally, I inherited just such a clock from my parents—a timepiece I still have in Park City today. The 1950s saw the diversification of Odo’s product line, introducing electric clocks, battery-operated alarm clocks, wall-mounted chimes, and modernized “Comtoise” clocks. The company expanded, setting up its main factory on Rue Voltaire in Morez, and adding two sites in Montmorot and Domblans; by 1980, its workforce reached 300. 

This was about the time (1966) when I arrived as a young graduate from Cluses to join the R&D as a technician. Odo was then at the very peak of its industrial power. I enjoyed my work in the design office, which was headed by Mr. Péricouche, and I was taken under the wing of Jeantet, a fellow draftsman. Unfortunately, I did not take to liking this isolated corner of the Jura region and remained there for only a few months before setting out to pursue skiing a passion that was already consuming me. 

After my departure, things began to take a turn for the worse for Odo (I know, I should have stayed!). The causes of this decline were easy to track. First and foremost was the collapse of the domestic clock market. Indeed, starting in the 1970s and 80s, wall clocks, chimes, and “Comtoise” clocks began to vanish from households as demand plummeted. 

Cheap electronic products imported from Asia made France production costs too expensive. It was then that Odo attempted to diversify by venturing into the sunglasses business securing a licensing agreement with the Bugatti brand but it was too late to offset the clock market collapse. 

In 2001, the Odobez family sold the company; in 2005, Odo’s new owners ceased operations and most recently, in 2025, the historic buildings on Rue Voltaire were demolished. 

And so, a page was turned and a book closed on one of the greatest French watchmaking houses of the 20th century.

Is the World Economic Forum compromised? (Part Two)

Yesterday, we discussed the hijacking of the Davos Forum by Trump and today we’ll see what’s likely to happen following this new development. To begin with, the media spotlight has become too narrow, with coverage focusing on the most dramatic personalities and celebrities of the moment, but no longer on the substance of the sessions. 

Another development that we might see is the forum becoming a stage for political signaling, with some leaders eager to exploit what was an important global gathering to project their strength, shape their narrative, try to influence the market and hopefully reassure allies or create even more chaos in the world order. 

All these transformations will not only overshadow, but pervert the Davos forum’s intended purpose. Let’s not forget that public trust erodes when the conversation feels skewed. We all expect global forums to address global problems, but when we can easily spotlight shifts to political theatrics, it clearly feels like the institution has lost its seriousness. 

The most optimistic among us might hope (good for them!) that the underlying work (economic modeling, climate coordination, policy frameworks) will continue quietly in the background. Of course, a more useful question than just “Has the forum become irrelevant?” would be to wonder if the forum is still doing meaningful work behind the scenes, even if the public narrative is distorted? 

Perhaps and hopefully the answer will be yes, but the visibility of that work will gets drowned out by the gravitational pull of a single political figure dominating the news cycle. I’m not certain this will be the case and I’m pretty sure my view of the moment is not so far from reality as global institutions are struggling to maintain focus in an era where media attention is shaped by bullies, polarization and circus-style spectacle!

Is the World Economic Forum compromised? (Part One)

You may feel differently, but it seems to me that the World's Economic Forum has been hijacked by Trump and that his obsessions have been the sole subject debated at that venue, falling largely outside the focus of the meeting. Has this annual economic summit become tainted and irrelevant? 

I know that I’m not the only one who wonders why global gatherings sometimes feel dominated by a single political figure or a single country’s internal drama. It’s clear that large international gatherings like the World Economic Forum, G20, COP summits, or UN assemblies are extremely sensitive to whatever or whoever dominates the global media environment. 

When a political figure like Trump generates all the headlines, provokes strong reactions, shapes geopolitical uncertainty and influences markets or alliances, their presence or absence can overshadow everything else. 

Historically, highly polarizing or unpredictable leaders have often pulled the attention to themselves, even when the official agenda was something else entirely. 

The Davos Economic Forum’s stated purpose is to address global economic trends, climate and sustainability, technological change, geopolitical stability and long‑term systemic risks. But as we’ve just seen, the media ecosystem rewards conflict, personality, drama and controversy. 

So even if the official sessions cover climate, AI governance, supply chains, or global inequality, the public conversation can become dominated by someone intent on stealing Greenland. This creates a perception gap inside the forum and outside the forum with the limelight turned on the most polarizing attendee. 

That gap can make the event feel “tainted” or “off‑mission,” even if the internal agenda hasn’t changed. Has that forum become irrelevant? Not necessarily, but its public narrative has become distorted. Tomorrow will explore the consequences of that situation and where it leave all of us.

A future for the multi-resorts model? (Part Two)

If warm winters like this one happen to become the norm, passholders might hesitate to renew, especially casual skiers who only get a few days in. At the same time, requests for refund or credit are likely to grow, adding pressure on companies to soften rigid policies. As a result, senior pricing, local pricing, and more flexible products could become bargaining chips. 

Divestment is also quite plausible: Vail, Alterra, Powdr, and Boyne may shed low‑elevation or chronically unreliable mountains. This is already happening in Europe, where abandoned lifts are becoming a common sight everywhere. In the longer term, if the model does survive, it will have to mutate significantly. We should expect fewer small and, or low-elevation resorts, in the mega-pass networks. Instead, the investments will continue only in those high-altitude, snow-secure destinations. 

Making more snow will still remain difficult to accomplish in a phase of diminishing returns and water freezing temperature stubbornly remains set at 32 degrees! 

Perhaps more productive solutions to improve cloud-seeding could help by leveraging AI, but I might be getting ahead of myself! 

Will poor snow years force concessions like senior and super-senior passes? Possibly, there is room to see leverage here. If and when renewals drop, companies will have to respond. 

Historically, ski corporations only change pricing structures when they face public backlash, and anticipate a measurable revenue loss. A bad winter added to climate anxiety could create exactly that pressure on them. I’m not saying that skiing is dying tomorrow, but it will be consolidating as well as stratifying, and will take a different face. Skiing may continue at high elevations, in colder climates and will shrink and shrivel everywhere else. 

To survive, the mega-pass resort model will concentrate around fewer, more reliable snowy locations. It will be in some ways like the airline industry with fewer players, fewer routes but higher stakes. In addition, ski towns will have to creatively offer more non-ski revenue (mountain coasters, summer tourism, winter biking, ice driving schools and other events). Dynamic pricing may also have to replace the “all-you-can-ski” model. 

Unless climate warming really takes the “hockey stick” route, the multi-resort model won’t go immediately away, but will be headed toward a contraction phase. The big companies will protect their strongest assets and quietly offload the weak ones. And yes, a slimmer renewal cycle could finally force them to rethink rigid policies and offer more flexible or senior-friendly pricing. 

If anything, the next 5–10 years could be the most transformative period the ski industry has seen since the invention of snowmaking and of high speed chairlifts. I remain far less optimistic than the whole industry that remains in full denial as it seems trapped by its huge investments and its lack of appropriate action!

Have multi-resorts passes a future? (Part One)

In my opinion, multi-resort passes like Epic and Ikon are likely to get pummeled if our weather keeps on misbehaving as snow failed to deliver on time this season and in sufficient volume. If the missing element was just precipitation, I wouldn’t worry so much, but the growing warmth that’s in line with global warming is a much more concerning sign that doesn’t bode well for winter snow activities as we know them. 

I wouldn’t be surprised if companies like Alterra, Boyne, Powdr’ and Vail Resorts begin divesting some of their resorts at winter’s end. The net result of a poor snow year might create a reluctance to renew passes next year and also be the straw that breaks the camel’s back of these mega-resort networks that might have to mollify some of their rules, like creating a senior priced pass among other concessions. 

There’s no question that the ski industry is wrestling with exactly the same anxieties I’ve just described. The data backs up my intuition with warming winters, erratic snowfall, and rising rain‑on‑snow events. All are already reshaping the economics of ski resorts, especially those below mid‑mountain elevations. 

Whether we want to admit it or not, climate change is already destabilizing the traditional ski model worldwide. Fresh reporting shows that in Switzerland, for instance, ski resorts have boosted numbers through multi‑resort passes too, but there’s a widespread acknowledgment that melting glaciers and snowless winters threaten the long‑term viability of the model. 

All over Europe, resorts below 1,200 meters may need 100% artificial snow by 2050 just to remain skiable and a major European study warns that a quarter of ski resorts could face snow scarcity every other year with just 2°C of warming. So far the Epic, Ikon, and other multi‑resort entities may survive thanks to their geographic diversification: If Tahoe is dry, maybe Utah, Colorado or even New England is better. This spreads the risk. 

Their massive cash flow intake from pre-season sales get them revenue before snow falls. The system remains robust as brand loyalty and fear of missing out will continue to force skiers to buy early “just in case”, so just one bad season won’t break them. If this might prove to be true in the short term, my concerns would become very real in the mid term and that’s what we’ll explore tomorrow...

A darker Oracle from Omaha…

In recent weeks, it appears that Warren Buffett, our famous “Oracle from Omaha”, is going “dark” with pressing and alarmist messages and videos about the economy and the dark future of US seniors Of course, some of these videos are third-party content obviously designed to maximize views and often exaggerate or sensationalize his actual comments. 

They often compile old or recent quotes from Buffett's annual shareholder meetings or interviews regarding the national debt, inflation, and the solvency of Social Security (a major concern for seniors). It’s evident that the creators of these videos, like the one below, seek to generate ad revenue by leveraging his authority to discuss serious, but often complex, macroeconomic issues in a dramatic, urgent tone. 

This said, Warren Buffett’s recent warnings about the U.S. economy and the future of seniors stem from growing concerns over the financial stability of Social Security and broader economic uncertainty under Trump haphazard leadership. For quite a while, Buffett has highlighted that the Social Security trust fund is projected to be depleted by 2033, which could result in a 23% reduction in benefits for retirees. 

Then, there’s the rising cost of living: He’s pointed out that many seniors are already struggling with inflation, housing costs, real estate taxes, insurance costs and medical expenses, making any cut in benefits potentially devastating. Buffet is creating a sense of urgency in planning, by urging seniors to act before December 2025, suggesting they review their finances, optimize retirement plans, and prepare for possible changes in federal support. 

His advice isn’t just for retirees as Buffett has issued a broader warning about a potential market downturn, referencing historical patterns and signaling caution to investors. He’s also concerned that political gridlock and rising debt could lead to austerity measures that disproportionately affect vulnerable populations, including seniors. 

My take-away is that Buffett’s tone may feel unusually stark because he’s trying to mobilize public awareness before policy changes become irreversible. He also sees a disconnect between political promises and fiscal realities while emphasizing personal responsibility in financial planning, especially for those nearing or in retirement. I admit that without being paranoid, I take his advice more seriously than our government-approved propaganda.  

The video message I mentioned was since then taking down by YouTube. Unauthorized? Probably. 

 

What’s up with Gini? (Part Two)

What follows is a selection of countries I was particularly interested in. Here’s a detailed look at how the Gini coefficients—which measure income inequality—have evolved over time in the countries you asked about, along with how they compare to the global average: 

The global average for 2025 is around 38.0, with the highest inequality found in South Africa at 63.0, Namibia with 59.1 and Colombia at 53.9. The lowest inequality is found in Slovenia at around 23.9, the Czech Republic at around 24.0 and Belgium at 24.2. 

What comes out is that the USA remains above the global average, with persistent inequality that won’t get any better under the Trump regime. Nordic countries (Norway, Sweden, Denmark) show slight increases but still rank among the most equal. Surprisingly, Belgium stands out as one of the most equal societies globally. 

This said, global inequality remains high in many developing countries, but some European nations maintain low Gini scores through strong social policies. Now, I can only hope that you know a lot more about Gini and how to judge a country by analyzing its Lorenz curve!

What’s up with Gini? (Part One)

Gini isn’t an old girlfriend of mine, but a statistical measure used to calculate income inequality within a country or population, and expressed as a coefficient. It ranges from 0% (perfect equality) to 100% (total inequality) and is calculated by comparing an actual income distribution to a perfectly equal one. This index was developed by the Italian statistician Corrado Gini in 1912. 

A useful tool for analyzing the wealth or income distribution in a country, it does not indicate however that country’s overall wealth or income. Some of the world’s poorest countries like the Central African Republic, have some of the highest Gini coefficients (61.3 in this case). 

A high-income country like the US can have the same Gini coefficient as a poor one. There’s plenty of room to debate whether it’s better to live in a country with a high Gini coefficient with very high average income or in one where equality is perfect but average income is dismal. 

Additionally, when reliable GDP and income numbers are hard to get, the Gini index accuracy will suffer. Let me put it this way, it’s not something easy for anyone to see and is just like someone’s blood pressure. It’s only when we see the measurement that you realize the extent of the social or cardiovascular problem! 

I have already discussed the Gini index in this blog in 2012 and 2016, but wanted to provide a more complete interpretation. Mathematically, the Gini coefficient is defined based on the Lorenz curve and isn’t always easy to grasp, so I wanted to share the video below that goes a long way to clearly explain how the concept works with all the nuances it implies. 

Tomorrow, we discover what the index is up to recently! 

Blue Banana?

If you’re a botanist, you’re probably thinking about the blue Java banana, also called “Ice Cream banana”, a variety known for its silvery-blue skin when unripe and its creamy, vanilla-like flavor and consistency when ripe, but that’s not the point of this question. 

The answer is about the economic "Blue Banana", a banana-shaped corridor in Europe stretching from northwest England to northern Italy, representing a densely populated, heavily urbanized, and industrialized region. It’s considered Europe's economic backbone, containing a high concentration of major cities, financial centers, and a dense network of transport and trade routes. 

The term "economic blue banana" was coined by the media in 1989, inspired by a French geographers’ study led by Roger Brunet, conducted for the French government, in which he identified this powerful urban and economic corridor called the Dorsale européenne (European backbone).  

That region included major cities like London, Brussels, Amsterdam, Cologne, Frankfurt, Zurich, and Milan. It covered areas including northwest England, the Benelux countries, the Rhine-Ruhr area in Germany, Switzerland, and northern Italy. 

The whole area was said to be a major contributor to Europe's economy due to its high density of industrial production, financial services, and trade. It also had a significant share of the European population and featured dense infrastructure and interconnected economic networks. 

This study was conducted during a time of rapid urbanization and industrialization in Western Europe, which created this "economic backbone". Later iterations of that originally banana-shaped region was extended into a fork covering the French south-east and going all the way to Barcelona, Spain. 

So, if you didn’t know or remember about that story, keep in mind that all bananas aren’t yellow, or edible! 

An unwelcome inflation surcharge…

A few days ago as I was looking at my French retirement check, I was impressed that it’s going up every month in 2025 in spite of its rather very small amount in Euros, but I’m now getting 13% more over the time Trump has been in office! 

What does that mean? It simply signifies that the United States Dollar has gone down in value and with it the wealth of our Nation since Donald Trump has begun to uncontrollably play with tariffs. 

Since subtle but significant weakening of the dollar is likely to add soon to the inflation caused by tariffs like the 15% levied against imported goods from the European Community and also any other country’s currency that has similarly risen against the greenback. 

What we have not heard yet from so-called economists, is that these foreign exchange fluctuations won’t be felt right away as most importers are hedging against such currency fluctuations for a few month, but soon enough it will add to a wave of inflation created by these foolish custom duties!

A response to “Surfing the Debt”

An old friend of mine responded very eloquently to my previous blog, by saying that for him, investment consisted more in following a process than using a strategy. Strategy often implies forecasting and reacting to external forces (markets, central bank policies, macro trends), while Process is about discipline, consistency, and focusing on what’s controllable—like asset allocation, risk tolerance, and re-balancing. 

This echoes the thinking of many seasoned investors and behavioral economists: you can’t control the wind, but you can adjust your sails. He then distinguished between “Extra Wealth” and Savings. Extra wealth is truly surplus—not earmarked for emergencies or lifestyle needs, it’s capital that be invested and exposed to market risk without jeopardizing one’s well-being. 

Savings however are the very important safety net. That’s were cash, bonds, stocks, and real estate—all with cash flow—come into play in a classic income-oriented approach. It avoids speculative assets and prioritizes predictability, liquidity and tangible returns mirroring the philosophy behind many retirement portfolios and endowments, in other words that cash flow is king. 

In his plan, there’s no room for speculation and avoiding assets like gold, crypto, oil, and currencies is a deliberate choice to sidestep assets that don’t produce income, are often driven by sentiment or macro shocks and are both volatile and hard to value. Finally there’s a constant re-balancing activity which consists in maintaining the strategic target between cash, bonds, stocks and real-estate following market ups (sell) and down (buy). 

By doing this, my friend is reducing emotional decision-making, avoiding overexposure to any one asset class and practicing a form of systematic contrarianism. A conservative and emotionally intelligent way to delineate financial roles.

Surfing the US Debt?

It’s not without apprehension that I wonder what investors should do when faced with the unsustainable US government debt our Trump Congress recently endorsed and what are the best strategies, if any, available at the moment? 

When I stare into the “black hole” of unsustainable US government debt, I remind myself to adapt with foresight instead of panicking. For one thing, I should make sure to diversify beyond traditional assets by looking at gold, commodities and carefully watching currency debasement.

Since cryptocurrencies aren’t my cup of tea, I’ll pass on these ones. In terms of equities, I should prefer to go global and reduce my exposure to US risk by investing instead in international markets with stronger fiscal positions. 

There and in the US, I should favor industries that benefit from fiscal spending (defense and AI) while avoiding those sensitive to interest rate hikes. As for cash positions, I should prioritize shorter duration bonds and pass on long-term treasuries as these might be vulnerable to rising rates. 

Another good strategy might be to consider exposure to currencies from countries with lower debt-to-GDP ratios (Northern Europe, Switzerland, Australia). 

My portfolio should be flexible enough and move beyond the classically recommended splits. More equities, real estate, and alternatives might hedge me against fiscal realities. Bottom line is that I should think long-term, act proactively and look for tax-efficient investing: Rising debt may lead to higher taxes, another good reason to use tax-advantaged accounts and strategies. Finally staying informed is key by watching debt-to-GDP trends, interest rate shifts, and policy changes. 

The tipping point may be gradual, but preparation is essential!

 

A super-moral businessman-statesman

Under Biden, the US economy was pretty good, but this started to drastically change with Trump. With his focus on social issues like canceling Diversity-Equity-Inclusion (DEI), going after antisemitism for no good reason, harassing trans and other non-conforming ‘sexes’, our born-businessman has wandered and let the economy down. 

Just consider this: Trump’s election has not been good economic news, so far, in spite of the suggestions that the man is a “seasoned deal-maker”. His on, off, and on again tariffs, are creating deep and lasting incertitude in the business community, leading the United States dollar to have its worst first six months of the year since 1973, as Donald Trump's economic policies have prompted global investors to sell their greenback holdings, threatening the currency's “safe-haven” status. 

The wealth loss sustained by the US and the result of that uncertainty, as between November 1, 2024 (just before the election) to date, the US dollar has plunged 7.5% against the Euro. Causing its current $29.18 trillion GDP to lose $2.19 trillion in world value! This policy of widespread tariffs will continue to be a net negative for the US economy, leading to higher costs for consumers (inflation), reduced overall consumption, and a dampening of business and investor confidence due to increased uncertainty in trade policy. 

Next, a promised deportation of millions of undocumented individuals will be an economic shock characterized by a significant reduction in labor supply, lost consumer demand, decreased tax revenues, and widespread price increases, ultimately leading to a contraction in GDP and a lower standard of living for many Americans. 
Economic models on similar scales of deportation often project billions or even trillions of dollars, that haven’t yet been accounted for, in lost GDP over time. 

Finally, the significant reversal of climate change policy by the Trump and his fellow MAGA Republicans will likely have cascading negative effects, from increasing domestic environmental and health challenges to severely complicating and potentially derailing the global effort to combat climate change, leading to more severe and widespread climate impacts worldwide and more financial cost to humanity!

Global economy

During our last mini-vacation, we had (bad) sushi in more than one place. Generally run by Chinese these eating establishment offer quantity at the obvious expense of quality, presentation and taste. 

Not only that, every time we eat sushi we order a Japanese beer. More often than not it happens to be Sapporo, sometimes it's Kirin and one time during that trip it was Asahi. 

The beer was okay and after a cursory look at its label, my eye got stuck on an innocuous be highly revealing detail: “Product of Italy”. Wow! I couldn’t believe my eyes! 

A fast searched on Google denied that fact, but a second one with is photo as a backup, confirmed that Asahi Super Dry wss also brewed in Italy due to Asahi's acquisition of Peroni Brewery in 2016. 

This allows them to produce the beer locally for European markets (and evidently US) for obvious production cost reasons. According to Kirin, the beer is brewed using the same recipe and ingredients as in Japan, maintaining its signature "Karakuchi" (dry) taste. 

This goes a long way in showing how futile and out of step with reality Trump’s tariff battle is and that the global economy is here to stay...

Trump challenged by arithmetic…

With his big mouth, Donald Trump has built an image of someone who knows what he’s talking about while in fact he knows absolutely nothing about Economics 101. 

Take his recent spat with Walmart. With arbitrary extra tariffs imposed on importers, the giant retailer will have to pay its suppliers more for the products it sells, so it likely will need to increase prices to maintain its profit margins and keep its stock value where it needs to be (something smart Trump would want to stay high). 

If one could assume that all industrial products will have to be built in America, it’s going to be harder to grow all the bananas and avocados we eat inside our country. 

I’m a convinced globalist and Trump’s idea of transferring all manufacturing in his country is a pipe dream, considering that our economy creates three-third of its GDP through consumption. 

I predict that his idea of tariffs will be the rope Trump and his sycophants are in the process of hanging themselves with, as he stubbornly hangs on to his “magic” economic concept of import duties. If you’re MAGA, give your fearless leader a calculator and tech him how to use it!

An expensive trip to Salt Lake City

On December 30, 2024, our local Firefighter ambulance company came to my home as I wasn’t feeling good, misdiagnosed me as having a heart attack and took me to the cardiac center of one of the main hospitals in Salt Lake, 33 miles down valley. 

Fifteen minutes into the ride, I was back to being myself and feeling good, but it was too late, the two paramedics on board and the driver were committed to take me there. 

I had just fell on my butt and hit a muscle that triggered a painful reaction from my sciatica nerve, but no one, from the medical guys in the ambulance to the specialists that told me I didn’t have a heart problem weren’t able to tell me that my sciatica nerve was the problem. 

I investigated the cause and found it myself. At the Fire Brigade’s request, I was asked for my insurance information in early January, gave it to them and my insurance paid them on February 12. Well, a few days ago, I received a bill asking me for $3,886.74! A pretty expensive trip to the hospital! 

Fortunately my insurance paid $979.65 of that and I only had to fork another $290 to satisfy our Fire Department. This said, the negotiated cost was only one quarter of what someone without insurance would have to pay. 

Once more, talk about highway robbery!

An expensive birthday present!

Recently, I gained access to the bill I generated following my 14 hour stay at the ICU of a major cardio-vascular unit in Salt Lake City, around New Year’s eve and my birthday. 

While my copay was just $360, the total bill amounted to $28,037 that was negotiated down to $8,704 by my insurance. 

This means that if I had no insurance, I would be liable for the full, non-negotiated amount just under $30,000, which seems to sound like highway robbery compared to an actual “street price” just 31% of that. 

So, I’m asking myself, “what gives?” and if everyone gets paid for the work they did, the hospital room and the drug or tests they performed on me, where would the remaining 70% go if I wasn’t insured? 

Just profit for the hospital, that would then sell the bill to a collection agency should the patient be unable to pay it? 

At any rate, the optics are bad as that huge amount doesn’t look any good on the paper my bill was printed on…

The high cost of American healthcare (part 2)

Yesterday, as I stumbled upon that study by the OECD “Our world in data – 2023” and featured it later in my blog, I was shocked at the disparities between healthcare costs and life expectancy per country. 

I was especially stunned at the high cost of healthcare in the US that stands out, for no good reason, with a lesser outcome, and appears to be a murky issue with multiple contributing factors. High administrative costs seem to excessively burden the US healthcare system, with its jungle of insurance companies, providers, and government agencies. 

This complexity leads to high administrative costs, including billing, claims processing, and paperwork. Further the US healthcare lacks cost transparency as prices are often opaque and vary significantly across providers and regions, making it difficult for patients and payers to understand and compare costs. Also, doctors often order unnecessary tests and procedures to protect themselves from malpractice lawsuits, driving up costs.

Then, there are the elevated doctors and surgeons salaries that are generally higher than in many other developed countries. This is due to factors such as high medical school debt, malpractice concerns, and the competitive nature of the healthcare market. The same is also true for nurses, technicians, and other healthcare professionals that also receive higher remunerations. 

Excessive pharmaceutical costs further burden the overall cost, as the US has some of the highest prescription drug prices in the world. Lack of price controls and the nefarious influence of pharmaceutical companies on politicians contribute to that situation. Unlike many other countries, the US government lacks the will to negotiate drug prices with pharmaceutical companies as they target and bribe members of congress. 

At his point the insurance middleman impacts the costs even further, with significant administrative costs associated in processing claims, managing networks, and marketing their products. Being for-profit businesses, insurance companies aim to generate more profits for their shareholders. This along with limited competition, lead to higher premiums for consumers. 

It's important to note that these are just some of the factors contributing to the high cost of healthcare in the US. The issue is complex and multifaceted, and there is no single solution, but that’s where Musk should start working to make a big dent in the US debt!

An attention-getting book about growth

A few weeks ago, I finished reading “Growth, a history and a reckoning” by Daniel Susskind. Let me admit that I’m very much interested in the subjects of growth and sustainability, and the cover of the book caught my eye! 

The first part of the book was well constructed and quite informative. I liked the history of growth, that is the thousands of years of stagnation that preceded the industrial age (even though, the advent of fossil fuels and turning points like the Renaissance period, weren't even mentioned) all the way to the “hockey stick” shaped growth that followed. 

It explained the creation of GDP as a measure of growth and the single-minded quest for ever higher numbers of that magic unit. The author undermined the mantra that “We can’t have infinite growth on a finite planet”, or the need for “degrowth” that would lead to recession, or preserving the planet for coming generations, countering that the world of ideas is infinitely vast and would be magic band-aid. 

Clearly Susskind can’t imagine a world without traditional growth as we know it. Instead, it seems to me that addressing overpopulation, repairing the damages done to the planet, repaying countries’ staggering debt and substituting quality for quantity in a reasonably spread timeline could begin to move the needle in the right direction. 

Well, I’m not an economist, I’m just a retired, old skier...

The art of being a hypocrite

The other night, I was watching “America at the Crossroads” on PBS News. Judy Woodruff, a former anchor on that channel, was interviewing Jamie Dimon, arguably one of the most powerful bankers in the world and CEO of JPMorgan Chase since 2006. 

I don’t like Chase, having been a good client for decades with that institution and, for no good reasons, refused to keep my safe deposit box there. I subsequently changed banks for the better. Mr. Dimon was asked questions about the US economy and its political climate by Woodruff and he made all the hypocritical answers I was expecting from him. 

His pedigree is impressive though. He was on the board of directors of the Federal Reserve Bank of New York during the late 2010s, and since has been a board member of the Business Roundtable, the Bank Policy Institute, and Harvard Business School. Dimon was also included in Time magazine's 2006, 2008, 2009 and 2011 lists of the world's 100 most influential people. 

As of February 2024, Forbes estimated his net worth at over $2 billion and last year he earned $36 million. That’s right $3 million a month, almost a hundredfold his bank tellers’ salary that range from $33,910 to $41,018. This said, Dimon was the first to acknowledge during the interview that he was concerned about the societal inequalities in America (a reassuring thought!) 

During the interview, he lists a lot of things the US government should do to address this deepening inequality, barely mentioning the need to tax a tad more fellows in his socioeconomic category, mentioning the Buffett Rule that would require millionaires and billionaires to pay the same tax rate as middle-class families and working people. 

That rule, inspired by the billionaire Warren Buffett, was proposed by Obama in 2011 and would have applied a minimum tax rate of 30 percent on individuals making more than one million dollars a year, only directly affecting 0.3 percent of taxpayers. 

Besides that, Dimon said that Democrats should stop demonizing Trump who had “some good ideas” while it was president, disregarding the man’s criminal record and his devastating influence on American society. In conclusion, a Teflon interview with a smooth Teflon guy who doesn’t want to upset his livelihood and really doesn’t seem to care about who is behind our Country’s rudder...