Tuesday, August 25, 2009

An Analogy concerning Obamacare


This is from my DH:
An interesting explanation of the Public Option from Brad Kuhnhausen in the Salt Lake Tribune:
Nancy Pelosi's House bill would set up the public option to compete with private insurance kind of like how an alligator competes with a duck. Let's use an analogy: Let's say that progressives are tired of grocery stores making profits off the bellies of hungry people. (Let's face facts; food is even more of a basic, necessary "right" than health care.) How would the public store work, based on the public option health care model?
Well, farmers would be required to sell produce to the public store at 20 percent below the price they sell to private grocery stores. So would paper and cleaning supply manufacturers. There would be no state sales taxes collected in the public store, unlike the private grocery store. A presidential-appointed "Grocery Choices Administration" agency would determine what products could be stocked in all private and public stores. (After all. we don't want people to make bad nutritional choices caused by those greedy for-profits.) Even better, your friendly public store will give you a sliding scale discount at the register (up to $88,000 income per year). Finally, the public store is prepared to stay open no matter how much money it loses. How long would your neighborhood grocery store stay open to compete against that?
It is the same with the Pelosi version of the public option. The private insurance companies just cannot compete over time. They will take their investments, and good-paying jobs, and go home.

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