Explaining why he believes a public option would not crowd out and ultimately eliminate private insurance, Obama said, “My answer is that if the private insurance companies are providing a good bargain, and if the public option has to be self-sustaining…then I think private insurers should be able to compete. They do it all the time. I mean, if you think about it, UPS and FedEx are doing just fine, right? No, they are. It’s the Post Office that’s always having problems.”
What was amazing about the statement was that in comparing the USPS to his proposed plan, and comparing private insurance companies to FedEx and UPS, he was making the argument of how inefficient and wasteful ObamaCare would be and how it would not be able to be successful if allowed to compete “head’s up” with private insurance companies. He was, in fact, agreeing with opponents of ObamaCare and saying the plan wasn’t sustainable in the open market.
In August, we mentioned the staggering losses of the USPS and the affect that might have on the USPS itself.
On February 9, 2012, Postmaster General Patrick Donahoe issued a statement saying the losses for the USPS during the first quarter of the fiscal year (October 2011 – December 2011) were $3.3 billion dollars. Projected out over the course of the year, that is over $10 billion in losses.
The USPS continues to look aggressively at closing post offices, ending Saturday delivery and ways to handle benefit and pension commitments.
One way to cut costs that is now in the works is the closing of half of the USPS mail distribution centers. The closings will result in the loss of 35,000 jobs.
Predictably, the Postal Workers Union is not happy about this.
The American Postal Workers Union (APWU) has expressed strong opposition to such proposals, with Union President Cliff Guffey characterizing Donahoe and Congressional Republicans as attempting to balance the USPS budget “on the backs of public servants.”
How Republicans and not Democrats are being blamed for the financial woes of the USPS is beyond us. We can only think “partisan politics,” but that is not the real reason for this post.
The point is that we see how Obama comparing the USPS to the public option in ObamaCare shows the massive failure of ObamaCare. If we look at what has happened with the USPS, we see a system too big, too cumbersome and too entrenched to react to the free market. Even though the USPS has codified competitive advantages within the market, it cannot compete with FedEx and UPS without either massive subsidies or regulating the free market enterprises in order to bring them down to the level of the USPS.
Either way, the comparison and the subsequent events have highlighted Obama’s failure to understand the free market system. Given that failure, it is hard to understand why anyone would continue to support ObamaCare. At the very least, Obama has shown a complete failure at understanding the market system.
For example, our friend William Teach over at the Pirate’s Cove highlights Obama’s proposal to raise taxes on companies, and specifically on oil and gas companies.
If you remember, Obama announced as part of his campaign style budget that he was going to push for corporate taxes in line with peer nations, which would have put the rate at about 20%. Well, his love of high taxes didn’t quite allow him to get there
(Washington Post) President Obama on Wednesday plans to propose a major overhaul of the nation’s corporate tax code, an election-year gambit that is likely to draw a contrast over a key policy issue with the Republicans vying to replace him.
Obama will propose lowering the nation’s tax rate to 28 percent. At the same time, however, he will seek to increase the amount of revenues raised overall through corporate taxation by eliminating numerous deductions and loopholes that save companies tens of billions of dollars a year on their tax bills, according to a senior administration official.
So, we can see that the idea is simply to create a situation where corporations are paying more tax directly to the Central Government, rather then reducing the rate which would incent companies to spend more of the money they keep, spreading it around to workers and through the economy. Typical.
Energy costs are the one thing that affects us all. Whether it is additional costs to a loaf of bread because the farmer has to pay more to drive a truck, the mill has to pay more to grind the flour, the baker has to pay more to heat his ovens, the truck driver has to pay more to deliver the loaf of bread to the store, the store has to pay more for energy to heat and light its buildings and finally, we have to pay more in gas to get the loaf of bread, energy costs affects us all.
That simple fact hasn’t dissuaded Obama from attacking corporations and specifically energy corporations. He continues to falsely and demonstrably believe that raising taxes helps the economy. He believes in spending more despite not having results from the massive spending bills or a way to pay for the spending.
The upcoming election is going to be about the economy, amongst other things. Obama and the Democrats will try to say how Obama’s plans and strategies have helped the country when all evidence says the opposite. They will try and wage a campaign of propaganda rather than facts.
Each and every time they tell you of the success of his plans, think “United States Postal Service,” as that is his model and shining light for a “successful enterprise with government support.”