Friday, March 26, 2010

Health Care Reform - the Protection Racket

The Federal government is compelling it subjects to buy insurance. They have given the hoi polloi a choice to buy health insurance; not just any insurance but officially approved, US Government certified insurance OR pay a repressive fine. All of this backed up by muscle of the closest this country has to a secret police - the IRS. Basically you buy the government's protection for your health or they take what you have and pay themselves. The leg tingling, media is swooning with the originality of this concept. But this is not a new design. This is the classic "protection racket" that goes back to the very first gang thug that walked into a place of business or private home and demanded that the owner buy "health and fire insurance" to protect the establishment from burning down with the owner in it. Once the proprietor purchases mafia health and life insurance, the collector comes back every week to demand another premium payment. Their is no fixed rate, each extortionist determines the victims "ability to pay" and charges accordingly. In addition to the premium, the collector will also occasionally charge additional "penalties" and interest if the victim resists in any fashion. Does this sound familiar?
The classic "protection racket" is actually less insidious than health care reform. In the classic model, the collector only demands protection for the victim's own property. But in the health care reform the victims will not only have to pay for their own protection, but will also be compelled to pay the insurance for the "less fortunate". You are considered "fortunate" if the government has left you with any means to pay.
The current administration laughingly assures us that this way, at least, the law abiding citizens no longer have to worry about the profits that the insurance companies were making. They have an excellent point here as anytime the government (or the mob) becomes involved in a business, profits vanish! Wouldn't it be better to "worry" about the insurance companies' profits than bear the yoke of government protection.

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