Audio Clips

24 June 2009

Obama: Liar or Ignorant?

The Hill is reporting today on Obama's press conference yesterday in which he was asked repeatedly to explain why having a public health insurance system would be a benefit when compared to the current private options. His response is enlightening.

Why would it drive private insurance 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.
Wow. Where to start? First off Mr. Obama, please show me a successful government agency. Secondly, the reason that the government is a threat to private industry that it competes with is that the private industry does not have the taxing power of the government standing behind it. Does anyone believe that the US Post Office would still be in business if it actually had to compete with UPS and FedEx and couldn't get subsidized by the Congress? Would Amtrak still be around if it didn't get subsidies from government?

The reason that a government-backed company can push out a company that provides better service is simply because they can undercut the private companies in price. The only reason they can do that is because they can receive subsidies from an all-powerful taxing force. That is an unfair advantage for any company. I certainly wouldn't want Blue Cross to be able to take money out of my paycheck to make up for losses incurred in its business model and yet this is exactly what will happen with a publicly-financed health insurance option.

This very same thing has happened repeatedly with the post office and the post office is asking for help again. Whenever they get in trouble they just go to Congress and ask them to "appropriate some money" (i.e. steal from taxpayer wallets) to help them out. Do you honestly believe that US Healthcare Inc. wouldn't do the exact same thing?

Either Mr. Obama is completely ignorant of economic facts (something that appears more and more likely) or he is lying to the American people simply to push a personal agenda. I would rather give him the benefit of the doubt and hope that he is not a liar.