HOW DOES HE DO THAT?

During his press conference on Tuesday, June 23rd, President BO was asked about his health care reform plans.
President BO referred to the so-called "Public Option."

"...As one of those options, for us to be able to say, here's a public option that's not profit-driven, that can keep down administrative costs, and that provides you good, quality care for a reasonable price as one of the options for you to choose, I think that makes sense."

QUESTION: "Wouldn't that drive private insurance out of business?"

MR. OBAMA: "Why would it drive private insurance out of business? If -- if private -- 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."

Are you intelligent enough to understand what he tried to slip by you in that statement?

In his very carefully crafted snide way, President BO compared a non-profit plan with the for-profit plans offered by insurance companies.

Now even I can get that a for-profit company cannot effectively compete, product-for-product with a non-profit company, particularly one subsidized by tax dollars.

Yet many of you will fall for that idea.

President BO was forcing into the conversation the ideas that there is something intrinsically wrong with a profit making enterprise by suggesting that their contention that they should be able to compete if they are ideologically correct, and that they are idiots for believing that the government can't run anything.

The evidence demonstrates that indeed the government does NOT know how to run things.

From Amtrack to the Women's Bureau, when the government runs the entity, it is the essence of inefficiency, cost overrun and waste.

But, of course, that will not be the case with government Public Option health care, because...well, just because President BO says so.

To help you understand, suppose you run a business that costs you $1.00 to produce the product, $1.00 to land the product, $1.00 to pay taxes, utilities and rent and $3.00 to pay your employees.

It costs you $6.00 to get that product to the customer.

If you sell it for $7.50 your business makes $1.50 for its stockholders and others to divide up as a reward for the risk they took investing in your business.

Then suppose a "non-profit" business comes along with the same product and does not pay the taxes, pays no rent, and does not have to pay anything to investors, therefore can ready the product for market for only $3.50.

Clearly they can sell the product for $3.50 or anything under the $7.50 you have to sell it for, because they do not have to make a profit.

Furthermore, they have unlimited financial resources that you don't have, because they can simply confiscate what money they need from the "customers" at will.

How would you feel about the non-profit "company" horning in on your business?

Would you just chalk it up to market competition?

Would you just say, "Oh, well," close up shop and slink away?

Would you choose to stay in business, losing "market share" with every passing moment because the same product is so much cheaper for the customer to buy from the non-profit?

At how many dollars in losses would you decide that you couldn't make a go of it in that business?

Yet President has persuaded millions that that is a good thing for the government to do when it comes to insurance companies and health care.

How does he DO that?