Government run Public Option Health Insurance : my 2 Cents Worth (now 26 adjusted for inflation)

Public option insurance would be good for many reasons, but should not be government run, directly or indirectly.

Anything government run has no profit motivation or fiscal accountability. Looking historically at almost any government operation, their solution has been to endlessly staff and supply themselves rather than self challenge their own productivity and expenses.

We’ve now set bad examples for the AIG’s and GM’s of our economy, former members (emphasis added) of the private sector, for they’ve been allowed to do the same thing.

What these companies and government have in common is that they know at the end of the day, at the end of their fiscal year, their bad choices and inefficiencies will not matter. Someone will simply write a check to cover it all and make it all right.

In the case of the government, they will “borrow” from another fund such as Social Security with lip service intent and promises to pay it back, and/or will endlessly print more paper money, and/or will raise taxes. All these approaches to balancing the books with unfunded hidden liabilities will have catastrophic economic results and end in a day when the piper will have to be paid.

What makes this kind of business plan even more dangerous is that the government can outspend any legitimate private sector competition, which does have to make a profit or at least break even. If government is allowed to compete in yet another area that should really be private, it will be self-fulfilling that the government will be the last man standing, having driven out legitimate and competing private sector companies.

The Department of Navy once operated under Zero Base Budgeting whereby you did not spend anything, unless you had a legitimate and real source of funding. That program should be dusted off and made the cornerstone of all government operations.

We need less government and government spending, not more. We need legitimate competition to private sector insurance companies in form of public option insurance, but not government run.

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