Wednesday, June 24, 2009

Obama's Testy Press Conference.

He handles the press very well and easily points out the blatant absurdity of some of the positions which they advocate.

Q: Won't that drive private insurers out of business?

THE PRESIDENT: Why would it drive private insurers out of business? If private insurers say that the marketplace provides the best quality healthcare, if they tell us that they're offering a good deal, then why is it that the government -- which they say can't run anything -- suddenly is going to drive them out of business? That's not logical.


Steel Phoenix said...

I don't see this as absurd at all. Is the government plan designed to make a profit? I don't think so. If you have one business designed to make a profit and the other with no such desire, then the not-for-profit can provide lower prices for their services until the for-profit has to lower prices to the point where they don't make profit. If my business were suddenly forced to 0 profit by the government, I'd quit.

What happens when there is a large natural disaster and everyone wants to cash in at once? My guess is that the private company goes bankrupt under the strain (seeing how they are run like a Ponzi scheme) and the government variant just asks for 'funding'.

There is a natural predator/prey relationship between business and customer. Adding n a huge new government option reduces the number of customers available to the private insurers, thus forcing them to downsize. GM showed us how obligations can crush a company at this point, and it also causes a lot of job loss.

I'd be happy to see the insurance companies go out of business, but I'm not believing the government won't run some of them under.

Kel said...

I see your point SP. As you know I think it's disgusting that healthcare in the US is run for profit anyway, that strikes me as just immoral and wrong.

And I think Obama is formulating an argument to beat away Republican talking points. And the one he's come up with is very effective. Even if, as you say, he's comparing apples and oranges.