Wednesday, December 19, 2007

'We're Going to Regulate the Insurance Companies'

Hillary is showing her socialist core again.

Hillary slams health insurers
Despite her failure to solve the health insurance issue during her husband's presidency, Clinton said she is resolved to solve it as president.

"We're going to tell the insurance companies that they're going to have to change the way they do business," Clinton said. "You know, we regulate banks. We regulate utilities. Well, we're going to regulate the insurance companies."
One of the many things socialists such as Clinton never seem to grasp is that you cannot force a company to provide a product/service against their will.

Guess what the insurance companies will do the government starts telling them how to run their business?

They will either raise their rates to pass on the extra costs or just will not write the coverage.

If you understand elementary economics, what Clinton is proposing doing here will shift the supply curve of health insurance inwards and thus reduce supply, not increase it.

Reducing the supply of health coverage is the opposite of what she claims to want to do. Clinton also has been advertised as the smartest woman in the world, so you have to figure that she took Econ 101 along the way somewhere and should therefore understand the laws of supply and demand.

So, what we have here is a situation where Hillary Clinton is either stupid or lying to you.

It's one or the other.

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