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Zero is soooo Confused

August 19, 2009

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Lets get to the root of Pres Zeros MAD drivel that he uses to dupe his stoned out socialist followers regarding Zerocare.  The mantra from the White House is that the 1200 page sleight of hand bill will help reduce healthcare COSTS. Hearing this at TownHall meetings all the dopes behind Zero nod their collective tinfoil hat heads in unison with the lapdog slobbering  media.  After hearing Zeros mantra 200+ times I realized that our rookie President is not as smart as we all thought.

In business COST would be defined as what it costs to produce a product.  PRICE would be defined as how much that product sells for. It seems that Zero and the socialist opposition has these terms confused. In zeros case this is easy to understand as until 2 years ago he was a struggling wannabe star who has never existed in the business world. He has never been responsible for a budget much less a profit.
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WalMart built their business model on reducing cost.  Sam Walton realized that transportation was a huge percentage of the COST of the products they sell. His model was to set up regional distribution chains that would reduce the cost of goods significantly.  He then went to suppliers and “bought” them by promising huge orders.  After trimming the COST of his product Walton knew he could then reduce PRICES and destroy the competition.  The rest of the story is history. The list of retailers that Walton steam rolled  is endless.

Business people know that in order to reduce PRICE you must first reduce COST – or you will go bust like Woolworths who was forced to chase WalMarts pricing without reducing COST. Zeros message is that his whacked out bill will reduce cost. HOW?  As Jackie Mason would say – “No one knows the answer to dis.”

What Obama is promising is a reduction of the PRICE of healthcare – not COST.  He is making hollow promises that the CBO has refuted time and again. No business people believe his rhetoric. One of the reasons that private insurance is so high is because Medicare and Medicaid force providers to reduce PRICE by 30-40% without reducing COST. They then do what any good businessperson would do – they charge everyone else 30-40% more for services, thus the high cost of private insurance. Let’s not forget that Medicare is bankrupt.

If the Democrats were interested in reducing the COST of healthcare their hair-brained bill would include serious Tort Reform and present providers with huge tax incentives for modern equipment and other investments. There are many free market ideas that can be implemented to reduce COST. Then providers would be in a position to reduce prices. Then maybe Insurance companies could reduce premiums. Sadly the Democrats have chosen to partner with drug companies who are having tingles up their legs dreaming of selling drugs to all of the currently uninsured and pursue a socialist system that is doomed to fail like Canada’s system.

If Mr Obama took some business classes at Harvard he would understand how ignorant he looks in the eyes of business people. He may also understand the outrage of the general public.  The man is our worst fear – a rookie with dreams of socialism.

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