Wednesday, June 24, 2009

A Little Lemonade Logic

OK, President Obama cannot understand why people fear that a government run insurance plan will run private plans out of business.

Has this community organizer ever ran a business? Has he ever had to meet payroll and comply with federal, state, county and city regulations, from which these entities exempt themselves? Hmmm... didn't think so.

Imagine two competing lemonade stands, one a privately funded business run by Susie and the other a government funded plan run by Bob.

Susie has to buy her lemons, sugar, cups and water from union suppliers. She also paid a hefty fee for a permit. She must charge enough to repay the loan she had to obtain at high interest to start this business. Any help she hires must be paid prevailing wages for her area. She must budget for advertising, rainy days, and a fluctuating lemon cost.

Bob on the hand has few of these concerns. He is fully funded by the richest source in the world. If they run out of money, they will borrow from China, raise taxes and/or print more. He doesn't have to worry about permits and regulations because he is exempt. His suppliers have all been threatened by the US Government largest consumer in the world to discount their supplies to him by a huge margin. If he needs help, he can just whistle. His backer has a surplus of people on the payroll who can be transferred over to his lemon stand to help out. Don't worry, they won't be missed.

After Bob's lemonade stand cuts prices and lures all of Susie's customers away by offering free ice and other inducements, Susie will fail. She will fold up her business and disappear.

Customers will soon be dismayed by the reduction in services at good ol' Bob's stand. And the cut back in hours he is open will inconvenience many. But soon it will get worse, Bob will disappear! His stand will be moved to a central location the better to serve a maximum of customers. And you will have to make appointments weeks, months, years in advance!

And for all this you'll find your cost rising and your benefits slipping away.

And Bob will have all your most private information. He'll tell you quit smoking and leave off extra pie and cut out Aunt Bessie's family dinners entirely. Then you may get another sip of lemonade someday. Good luck sucker. He's got you sucker!

Home » News » Politics
Obama Says It's 'Not Logical' to Fear Government-Run Health Care
Wednesday, June 24, 2009
By Fred Lucas, Staff Writer

White House ( - President Barack Obama said it is “not logical” to think that a government-run health care program competing with private health insurers would eventually drive the private firms out of business.

The concern expressed by many Republicans and some private insurers has been one of the leading arguments against the president’s plan to establish a “public option” health care program.

At a White House press conference on Tuesday, Obama said: “Why would it drive private insurance out of business? If private insurers say that the marketplace provides the best quality health care; 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.”

© Janet Crain

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1 comment:

keyboard.jockey said...

They just can't help themselves they have no class. John Kerry Turns Sandford's affair into a Palin Slam...that's really stretching to hit a target that doesn't even present itself. They must be scared to death of Governor Sarah Palin.