Tuesday, March 9, 2010

Every Solution Should Create the Next Crisis

Yesterday, Mr. Obama lambasted insurance companies for raising premiums and making profits "as long as they can get away with it."  Hmmm... I always thought that in free market capitalism, that was a good thing -- Adam Smith and the invisible hand and all that.   But once again, Mr. 0 rails about big evil companies making profits at the expense of the poor little guy.

Why doesn't he just bite the bullet and ban all evil companies and all evil profits forever?  People, rise up against Walmart, your oppressor!  Let the government run everything for the good of all, in a true economic democracy!

"Dr. Zhivago, your house had enough room for thirteen families.  This is more just, comrade, don't you think?"

Anyway, I have been trying to make sense of where Mr. Obama and the Congress are going on this health care debate, but no real plan exists right now as far as I can tell. (There may be one being passed around in Congress, but who knows?)

But it appears that any future plan probably would have these pieces:

  1. An edict that insurance companies will no longer be allowed to deny coverage for pre-existing conditions, and could no longer drop coverage for any reason.
  2. People who do not have insurance from their employers would have an option to choose from a large number of plans provided by insurers, but presented to them by the government.
  3. The government would provide some subsidy for poor people.
  4. The cost of premiums would be controlled by the government. If an insurance company wanted to raise rates, they would have to apply to the government and extensively justify why.

This plan is consistent with the Cloward-Piven Strategy of forcing political change through orchestrated crises.  The Strategy says to set up impossible entitlements, then when they fail, set up even more impossible things that the society must provide.  Thus crisis follows crisis, each one larger than the last.  And each one involving more and more government.  In the end the capitalist system fails, and is replaced by socialism.

The insurance companies will have no control on who they insure, so their costs will skyrocket. They will also have no control on how much they charge for premiums, so their income will not be able to go up. This impossible situation sets up the crisis.

As the insurers try to cut back more and more as they go under, politicians will say things like, "These companies do not care about the health of Americans.  All they care about is their own profit."  "Their selfish greed is killing Americans."  "This shows how the free market cannot be allowed to dictate our healthcare."  Scandalous stories will be told of people being denied care in violation of the law, backroom deals to prop up the companies, and various financial shenanigans.  Private health insurance collapses in a heap.

Then the government steps in with full harmonized medical care.  Everyone will get the same care, and it will be illegal to go outside the system -- punishable by fines and jail.  (Remember the "health crimes" in Hillary's bill?)  As the limitations and inefficiencies of a socialized approach become evident, more and more people will clamor for more and more benefits. The largest organizer groups with the most money will get what they want, but discontent will grow.  The overall level of health care will fall.  Doctors will leave and start other businesses, or just retire early.  There will be a health care shortage.  Elective surgery will be scheduled years in advance, then just eliminated.    The government will pass new laws offering more and more benefits.  The cost of health care will become the second largest budget item after interest on debt.

And another step toward a glorious progressive future will be complete.

As Mr. 0 says, "We are going to fundamentally transform America."


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