Why would private insurance companies go out of business, if private insurers say that the marketplace provides the best quality health care; if they tell us that they’re offering a good deal, then why is it that the government, which they say can’t run anything, suddenly is going to drive them out of business? That’s not logical.Either Obama doesn't know the meaning of the word "logical" or he simply can't form a logical argument. Or possibly he can't think logically beyond a single level of complexity. Either way, let's have a look at what's wrong with his argument, which goes like this:
Claim 1: Private health care companies (and presumably their proponents) are worried that a "public option" will put them out of business.
Claim 2: Private health care companies (and presumably their proponents) say the government can't run anything [competently - I assume he means this - ed].
Claim 3: Private insurers (and presumably their proponents) believe they can run their own companies in a competent manner.
Conclusion: If the government can't run anything competently, but the private insurance companies can run their own businesses competently, then the private insurance companies will not be driven out of business by a government run "public option" health care plan.
So, seems logical right? All of us dopes who are worried about the private insurers being run out of business are either stupid or fear mongering. Our worries are illogical!
See, only a dyed-in-the-wool liberal could think that this argument was "logical." The problem, and it's a very simple and obvious problem, is that the government doesn't have to run its businesses competently in order to drive private companies out of business. Heck, government-run businesses don't even have to make as much money as they spend. The key word here is "subsidized!" No matter how poorly the government entities are run, no matter how bad their service, they won't go out of business!
How does one compete with that? Now, in the UK, they have this sort of split up. The wealthy can afford the good stuff, but the rest of the people can only afford the government run crap. And it is total crap. But they don't have a choice. They pay for it, and they might as well use it, since it's "free."
You know, some people will go a long way for anything that is free. I once saw a line that had to be an hour or more long, went around the corner, for a free ice cream cone at Baskin Robbins. Now think about the new public option "Obama Cone" shop that is opening up next door. They'll have "free" ice cream every day. How's the Baskin Robbins supposed to compete with that? The ice cream might suck, but hey, it's free, and you can bet there'd be a line around the corner.