Since Barack Obama has been president the government has taken over auto companies and banks. Now our democrat leaders hope to give the government the biggest industry yet – healthcare. They say private insurance companies are only interested in profit, and thus, incapable of managing healthcare needs and priorities. In other words, Uncle Sam’s business model can outperform Sam Walton’s in meeting the needs of people.
Sam Walton was the founder of Wal-Mart. The first store was opened in 1962 and grew by providing American made products at the lowest prices. Today, Wal-Mart employs over 2 million people full-time and of the top 10 richest people on the planet, half are the sons and daughters of Sam Walton. Sam was, like private insurance companies, most concerned about profit. Walton knew the way to riches was to meet the needs of his customers.
I am not happy with the performance of insurance companies. I completely disagree, however, that the federal government can do a better job of meeting the healthcare needs of people than profit seeking companies. Who do you think could provide the best services most effectively and repeatable over a broad spectrum of locations, economies, etc. – Uncle Sam or Sam Walton?
I fear government control of healthcare. Government managed programs and services are marked by inefficiencies, higher costs, waste, and corruption. Obama tells us that Medicare fraud alone costs us $500 million.
The following points should help clarify why I think a profit seeking company can do a better job than government.
- If the federal government runs a program poorly, there are no consequences. A government program can’t go bankrupt.
- Private sector managers routinely cut costs to produce a profit. Government managers have no pressure to reduce costs. In many cases it would be stupid to do it, considering their budgets would then be lowered the next year.
- Without a profit motive there is no incentive to improve services. At Wal-Mart you are welcomed by greeters. When going to a government facility you are greeted with arrows directing you to the correct line. Neither greeters or arrows are a guarantee of great service, but it does speak volumes as to who is trying hardest to please the customer.
- Profit is fueled by innovation, new ideas, and improved ways of doing things. There is no innovation in government bureaucracies, just new layers of paperwork and procedures.
- Federal pay is tied to longevity not performance. In the private sector if you don’t perform you don’t endure.
- Federal employees are never fired, unless they are caught committing a crime. When Jack Welch was the CEO of GE he required each department to cut or move 10% of the least productive employees every year. There was accountability. You will never see this in government.
Most democrats want a single-payer system. That means insurance companies would eventually be eliminated and government would be the only option. I think democrats really believe that government would care about people more than private companies. That may be true, but even abusive parents love their kids. The government systems usually become flawed and impossible to change or eliminate.
I will take my chances with capitalism, with companies who are seeking profit. At least they know that to grow and generate more profit they have to please me. The government is about mandates, laws,and standardization of care. No thanks.
If the big issue is the uninsured, make a law that insurance companies have to insure them and then pay for it. Next issue, please.
Tags: beaurocracy, Government, Healthcare, profit, publlic option, Sam Walton, Uncle Sam
Awesome article! The consternation I see is that you present the perspective of reason. Regrettably, few in our gov’t know what reason is. Further, still fewer would know how to apply it if they were to know it.
Keep up the good work.
You get a chance, email me personally.
Grant
Of course, the real reason that the Liberals want to take over the health care system is for the increase in power that would give them. Obama has certainly been clear lately that he wants to change the economic system of America to be the same as the European’s system of Socialism with complete control of the people by the government.
I see “control” as the real reason for Obama’s actions and behind all of the Liberal’s behavior. Obviously, the Liberal elite, Harvard educated types, believe that they are much smarter than the rest of us and better suited to make decisions about anything and everything.
But even that, implies that the Liberals are acting in what they believe is our best interest. I believe that the real reason behind all of the Liberals actions is just plain “Power”. They are simply power hungry people who are obsessed with having power over others.
An indication of that is Nancy Pelosi’s actions right after her swearing in as the Speaker of the House. She raised one of her arms skyward and yelled, “POWER”. I was shocked to see her be so open about this.
Great article, Bill. Keep up the good work. The fact that you are putting out this blog and letting the people know the truth is a blessing for our country. I hope I get to see you again sometime.