Is Auto Insurance the next Obamacare

With all the buzz and controversy about President Obama's health care overhaul, could auto insurance be on the horizon? Most states already mandate all registered auto owners maintain insurance on their vehicles. Health care has been a hot topic since ex-president Bill Clinton's wife, current Secretary of State Hillary Clinton, made it a public issue back in 1995. Now it is on the table to have the Federal government take full control and mandate to individuals and businesses what is acceptable and authorized.

If the current Obama Administration takes control of our health care industry, what's to stop them from extending that control to auto insurance? We have seen their grip on two of the largest industries in America, banking and automobile manufacturing. If Obama wants to take over the private auto insurance industry, he is poised to to do so with little Congressional opposition.

Health insurance carriers are arguing that if the Federal Government gets into private under 65 health insurance, competition will be destroyed. How can a private company compete against a government? I am not a college History Major, but I do remember in the '80's when our steel industry was suffering against he Japanese steel market. Japanese steel manufactures perfected a better smelting process that was cheaper than the American steel producers could match. Due to a huge investment by the Japanese government into Japanese steel plants, American steel producers lost their competitive advantage. After American firms figured out what was happening, it was too late. Japan subsidized the process to make their manufactures more competitive on the world market. How could U.S. steel manufactures compete against a Foreign government? The U.S. Government felt the best way to protect the American Steel industry was to subsidize it, as well. This was competition against a foreign government.

I use this example to illustrate that if we revere Capitalism in this country, then what our own government is doing is the complete opposite of free market capitalism. Federal government is not an equal player in the capitalist model. The health insurance industry will be reduced to one or two carriers that, before long, will require federal money to stay in existence. With government money comes government dictation (Fannie Mae and Freddie Mac sound familiar).

If the Federal government can conquer the health insurance market, it will give them a model to use for the auto and home insurance markets. Insurance is a way of transferring risk from the individual or business to a company, not a government. If that was the case, every government in the world would administer their country's insurance needs. We have allowed our federal government to administer and regulate our Medicare system. It was setup in conjunction with our Social Security Administration in order for our elderly and disabled to have access to adequate monetary funds and health care. If we allow the government to continue down this road, we will open the door the government to control all of our insurance needs regardless of need or want.

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