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Originally Posted by Strem2  Even in this depression/recession they just posted record profits. Please, argue if you want, but please try to connect to a fact once in a while. |
I was basing the statement on the hypothesis, that insurance companies have been dishonoring their contracts. It is the last resort i believe, before a bankruptcy. A very bad call though because it makes doing buisness in the future harder.
However, if the insurance companies have been honoring their contracts, and at the point of renewal the insurance company found it untenable to resume buisness then this company would be in its every right to do so. Then it makes sense they would be earning money.
Where you go wrong i think, is the belief that insurance companies can insure you regardless. But because a persons health, or lack of it, lies increasingly within his own control, many, if not most health risks, are actually uninsurable. You have been misleaded if you believe when you sign up with an insurance company and pay x amount each month you are set for life, thats not what insurance is.
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Originally Posted by Strem2 This is where market forces will come into effect. The insurance companies that want to survive will have to offer fair service. |
I will repeat myself. The criterias government sets up makes it impossible for insurance companies to survive, because they force insurance companies to participate in "overinsuring".
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Originally Posted by Strem2 I love the way you make stuff up.... Have you thought about writing fiction? |
You have to consider all the different scenarios. As Henry Hazlitt puts it;
"The art of economics consists in looking not merely at the immidiate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for the one group but for all groups."
There is a posibility that forcing insurance companies to insure the uninsurable will lead them to eventually operate at a loss, which, since government has been making the decisions for the companies, will lead to government eventually bailing them out.
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Originally Posted by Strem2 - What? You don't think they should provide the service that people are buying? Don't go into the business. |
The regulation is not about making insurance companes honor their contracts, companies have been doing that for years. It is about changing the role of insurance companies from measuring risks, to simply just cover anyone who gets ill. Unsustainable situation. Without getting into too much detail, that is basically subsidizing the ill and unhealthy which means you get more of it.
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Originally Posted by Strem2 What are you suggesting here? Please, be specific. I thought you were the one saying that people can do very well without a government? How can people be good and people be bad? |
People will vote for someone elses money to be spent on themselves. So why give them the oppertunity?
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Originally Posted by Strem2 Can you give one example here? Henry Ford? Thomas Edison? Jesse James? How about Bernie Madoff? Are you saying that selfishness is always good and should always be rewarded? |
Selfishness is constant, its part of us all. Its why creating an institution that can control other people is a bad idea.
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Originally Posted by Strem2 How about the centralized power of IBM, FORD, GM, General Electric, Standard Oil? Are these all bad, or all good? |
Since companies under free market conditions draw their power from the consumer, it is their number 1 priority to satisfy him/her.
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Originally Posted by Strem2 They no longer have a monopoly on force. There are now private armies that you, or anyone else with enough money, can buy. Blackwater is one.... |
I still dont have the option to not pay taxes. If i refuse to pay, they will keep escalating violence used against me until i am in jail or dead.