I’m an Eli Lilly and Novo Nordisk investor, and it’s great to see how their GLP-1 weight-loss drugs can help to get one of our biggest problems worldwide under control. However, we should use them in a smart combination, or otherwise the costs will crash the healthcare system (“How Ozempic and Wegovy Could Break the Healthcare System,” Cover Story, Sept. 21).
Medicare and other insurers should pay for them, but only as a first step for those who, for example, already have high blood pressure and have to take medicine to control it. Medicare should also implement a healthy-life bonus system for all others who want the drugs. If patients do their workouts and are also changing their eating behavior by adjusting it to their metabolism, then it’s going to be an affordable success and will help many people.
It can’t be that people without diabetes take this drug for the rest of their lives. It isn’t affordable for the healthcare system. Every drug has long-term side effects, and we shouldn’t support a pill just so patients can get their next pizza slice without guilt.
Chris Frauenknecht Chur, Switzerland
Social Security Fix
**Reimagining Social Security's Solution** --------------------
The proposed bipartisan solution to fix Social Security by investing $1.5 trillion of government funds in equity index funds is deeply misguided. Equities come with inherent systematic risks that are factored into their valuations. The resulting risk premium is what contributes to equities generally earning higher returns than bonds. Believing that history guarantees equities will always outperform U.S. Treasuries in the long run, and therefore carries no real risk, is a fallacy. It's akin to assuming I can never be involved in a car accident simply because I've been driving for 45 years without incident.
Old Dogs Can Learn New Tricks
Teaching new techniques to long-standing institutions is a challenging task ("German Auto Makers Are Pouring $406 Billion Into EVs. The Race Is On," International Trader, Sept. 22). Both American and European auto manufacturers are burdened by legacy issues, aging workforce, and robust labor unions. Innovation tends to arise from leaner, owner-operated firms. It's no surprise that Tesla has emerged as the leading market player in luxury electric vehicles in the U.S. and Europe, and very likely in the mass markets too.
Addressing the Issues with China
China presents its own unique set of challenges that need to be acknowledged and addressed.
China's Growing Influence: Is it a Cause for Concern?
As the global economy continues to evolve, companies face tough decisions when it comes to investing in China. However, it is crucial to consider the implications of such investments. By delving into China's economic landscape, it becomes apparent that investing in this country has far-reaching consequences that extend beyond mere financial gain.
China's President Xi Jinping, the Chinese Communist Party, and the Chinese military greatly benefit from foreign investments. It is important to acknowledge that every investment made in China contributes to the strengthening of these entities. This has raised concerns among many analysts and experts, causing them to scrutinize the potential risks associated with investing in the country.
The Chinese Communist Party exercises substantial control over various aspects of the nation's economy. Through its policies and regulations, this party determines the direction and objectives of China's industries, commerce, and trade. Consequently, by investing in China, businesses inadvertently support the Chinese Communist Party's agenda.
Another crucial factor that cannot be overlooked is the Chinese military's involvement in economic activities. The Chinese military occupies a prominent position within the nation's economic landscape. With substantial control over key industries and sectors, the military benefits from foreign investments, further enhancing its position of power.
It is understandable that businesses are enticed by China's vast market potential and lucrative opportunities. However, it is imperative to weigh these benefits against the potential long-term consequences associated with supporting entities such as President Xi Jinping, the Chinese Communist Party, and the Chinese military.
As we navigate this complex economic landscape, it is essential for companies to make informed decisions. This requires thorough research and careful consideration of not only short-term financial gains but also the broader implications of investing in China.
Embracing Responsible Investment Strategies
In light of these concerns, businesses must adopt responsible investment strategies that mitigate the risks associated with supporting entities that may compromise democratic principles or pose geopolitical threats. This entails finding a balance between profit-seeking and upholding ethical values.
Companies should consider engaging in thorough due diligence before entering the Chinese market. This includes assessing the potential influence of the Chinese Communist Party and the Chinese military in the sectors they plan to invest in. By conducting detailed research and seeking expert advice, businesses can make well-informed decisions that align with their values and mitigate potential risks.
In conclusion, the decision to invest in China entails more than simply financial considerations. It is a choice that can have profound implications, not only for businesses but also for wider geopolitical relationships and global security. By embracing responsible investment strategies, companies can navigate these challenges while preserving their integrity and minimizing potential risks.
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