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Foreign investors of all stripes jump ship with the first sign of contagion, unrest, and declining fortunes. In this respect, FDI and portfolio investment are equally unreliable. Studies have demonstrated how multinationals hurry to repatriate earnings and repay inter-firm loans with the early harbingers of trouble. FDI is, therefore, partly pro-cyclical.
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A quote from the Labor Department shows that the healthcare industry accounted for 1 in every 5 new jobs created this year. Office-based physicians accounted for over 4 million jobs in this country. The world of healthcare is a major economic contribution to this country, and we can’t forget that. Congress will most likely re-examine this issue after the November elections, along with a lot of other healthcare related issues, including the plan to make a 27% cut to Medicare physician payments.
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