President Obama:

if you take some of the profit motive out, maybe if you are reducing some of the administrative costs, that you can get an even better deal, that’s going to incentivize the private sector to do even better. And that’s a good thing. That’s a good thing. Now, there have been reports just over the last couple of days of insurance companies making record profits — right now. At a time when everybody is getting hammered, they’re making record profits, and premiums are going up. What’s the constraint on that? How can you ensure that those costs aren’t being passed on to employers or passed on to employees

You can do that with price controls, of course, which don’t really control prices as much as they reduce supply and quality, and create black markets. But given Obama’s track record on quasi-nationalization of the banking and auto industries, he just might favor an outright takeover of the American insurance industry. Only a college professor, with all the realism and business knowledge of that ilk, could believe the tripe about the efficacy of “reducing administrative costs” and limiting the “profit motive.” Damned fool.

This entry was posted on Thursday, July 23rd, 2009 at 7:13 pm and is filed under business, Democrats. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.