Song of Truth Foundation

The issue:  Over Regulation that is just wrong - out of stupidity or on purpose.  We just saw something that many may have missed.  One week ago McDonalds said in a memo that they could not meet the health care regulations and therefore might stop insurance for 30,000 workers.  Washington Obama-land went berserk since their answer is always that anyone who objects to their wishes is both stupid and evil.   Well then McDonalds claimed they did not do that.  But this week McDonalds and 30 other companies and one union are given health care waivers.  Why?

Well, it seems that at the bottom is one single of those regulations in that 2500 page nonsense that says that insurance companies must return 85% of the money they take in to the people and only keep 15% for expenses.  On Fox, Juan Williams talked about the evil insurance companies that just cannot stand to lose profit !!!!  Really?  How many companies has he and his friends run - to be such an expert?  Well industry unlike the government cannot run at a loss.  They cannot print money.  I have never run an insurance company, but I was high up enough to know the profit and loss from 3 corporations.  One was a $30 billion a year Fortune 500 company, one a $20 million a year engineering startup, and one our family retail business.  All three needed to retain 50% or more to pay payroll and expenses.  Capitalistic pigs?  Best case profit was 5% after bills were paid.  So investors some years sort of just kept pace with inflation for their money.  In the worst years, all lost money.  I am also aware that for many retail outlets the markup is 50%.  Huh?  That means that the cost of sales for many things equals the cost of the goods they are selling.   (if any liberals are reading this, 50% is higher than 15%... no, honest).

Now I have never run an insurance business, but let us look at this.  If they only can keep 15% for costs, that money must cover commissions for sales of policies, cost of buildings, rental (rental is quite high in plazas - I know - I have paid it), utilities, taxes, admin salaries, 1099 contract salaries, insurance for them and their employees, payroll taxes (there are 10 as I recall - 5 for employees, five for companies), supplies, travel,  legal fees, long before anyone can think about profits.  Well, what is our starting point here?  We know that right now government pay is twice that in the private sector, about $123,000 for government to $61,000 private.  So if government says salaries in the private sector are too high, like Juan Williams, they are either stupid or heartless or both.  Then the government wants to regulate their "margin" meaning the money that can be used to pay bills.  Then the government says that insurance companies cannot turn anyone down.  Then the government says they will raise taxes, they want cap and trade so utility costs double, and also card check so their employees can unionize and demand twice as much money and half the work.

Anyone in those liberal cubicles that ever worked a day in their lives figure if this works or not?  It appears the answer is no.  They may have a system that is impossible.  How many of the regulators had to actually control a Profit and Loss statement and make payroll and taxes?  Let me guess:  zero.  So why would this bull in a china shop get it right?  And this is just one page of 7500 Obama regulations done by people who both hate industry, the private sector, and want it dead.

On the other hand, maybe this is on purpose.  Kill industry so they cannot even pay their bills.  And then roll out the public option.  Either way, this may mean the death of health care followed by the death of US industry if these regulators continue this.   I cannot believe how much this upsets me.