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Message Subject How much will health care cost you?
Poster Handle The Professor
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This bill needs to pass to stop these other insurance companies from ripping the american people off. Obama is trying to help us and everyone is letting the sheep brain wash them. Wake the hell up people.
 Quoting: Debbie 920271


I find it interesting that you classify those who oppose the monstrosity called Obamacare as sheep. I propose that you are the blind sheep dutifully following the voice of your shepherd. You are – or you pretend you are – concerned about the big bad insurance companies ripping of the ill and injured. I think it is more than mere coincidence that your shepherd Obama has been saying the very same thing. However, those who know that Obama is the worst liar in the history of the Presidency actually took the time to check out the facts. Guess what? The insurance companies were making a very modest profit margin, less than many U.S. Corporations.

Here is how Obama brain washes his gullible sheep: he tells the flock how much profit these giant companies make, but he neglects to tell them that although their profits are huge, their profit margins are, well, marginal. You see, Obama knows that those who comprise his flock aren't that bright and do not know the difference between profit and profit margin. Let me enlighten you, or rather let me try to enlighten you.

Do you remember when the price of gasoline had everyone complaining? The U.S. Congress blamed the evil oil companies who were making billions of dollars in profit. Unfortunately, many people jumped on the bandwagon and the oil companies were demonized. However, scattered voices of reason (mostly talk radio) proved that the oil companies were making less than 10% profit margin, that is for each gallon of gas costing $3.00 the oil companies made a profit of 30 cents. At the same time, various levels of government were raking in 50 cents and more in taxes on the same gallon of gas and there was no public outcry.

The reason the oil companies were making so much profit is that they were selling so fucking much gas. They were not ripping off anyone, but were in fact delivering a critical product at a very reasonable price. Let me break it down, way down, to your level. McDonalds makes a huge profit because they sell one hell of a lot of burgers; however, their burgers are inexpensive because their profit margin (profit as a percentage of sales) is small. Just suppose that McDonalds made a trillion dollars in profit this year (yes, I made this up) and there is a restaurant down the street that only made $100,000 profit. Further suppose that Mcdonalds charged you three bucks for a burger and the restaurant charged you five bucks. Where would you buy your burger, assuming taste and quality of both burgers were the same. Would you willingly pay more because the restaurant made less total profit but charged you more for a single burger? Who is ripping you off? Get real.

Now let's talk about health care. The insurance companies' profit margin is in fact reasonable, but Obama and his minions are not saying anything about profit margin. Instead, Obama talks about total profit as though money made by sheer volume of sales is a bad thing. However, prices are always cheapest (a very good thing) when profits are highest, assuming a reasonable profit margin. This is true because the corporation's cost per unit decreases as more and more units are sold. High corporate profits are a good thing for Americans because they keep costs down. This is true for oil companies, grocery chains, fast food services and health insurers. Now I have an MBA and I am sure you do not, but certainly you can understand this basic concept.

Caution: never condemn a company because it makes a lot of money as long as long as the profit is the result of high volume and not excessive profit margin. Now, do yourself a favor and find out how much profit margin was made by the insurance companies compared to other industries. Quit accepting everything you hear and check things out for yourself for a change.

Quit being an Obama sheep.

PS: Do you remember when Obama said that by insuring more people, the cost of health insurance would actually decrease for everyone? Well, at least your fearless leader got it partly right in that the more customers you have (the more gallons of gas sold) the cheaper the cost per unit. Thus, the higher the profit from increased customers, the lower the cost per unit. However, Obama is not that bright and failed to understand that an increase in the amount of customers reduces cost per unit only if the additional customers are paying for the product, which is not the case in Obamacare But that's another story for another time.
 
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