Set The Insurance People Free!

A wonderful development in the history of free markets is insurance.  By pooling risks, we can advance division of labor because loss is lessened individually when loss is shared communitarily.  When insurance was voluntary we had tremendous innovation and wealth expansion.

There is nothing in the left liberal progressive agenda, or in the right wing conservative agenda, in which government is the answer, that is not better handled at a lower price than by insurance.  Food safety is a matter of  standards set by insurance companies that have to pay out if someone dies.  Construction integrity, safety and efficiency is a matter of insurance companies deciding what they will or will not cover. Police and fire protection is better and cheaper when insurance companies provide it to arbitrage risk and make money on loss dropping faster than premiums.

The welfare and war-mongers work from the premise that being a government worker metamorphizes a person into a saint, and well worth the money.  Sadly this is not true.

Let's get back to housing for a second.  When my house was worth 1.7 million, the insurance company would only insure it for $850,000.  How come?  Because that is all it was worth.    The insurance companies, with their massive financial resources, are well aware of boom and bust cycles.  And being born in international trade, ocean shipping, the insurance industry has always refused to insurance anything more that it is worth, for the simple reason, over-insured property (or over-valued) is a moral hazard, begging for fraud.

Now, to advance the war-and-welfare mongers progressive agenda, insurance had to be hamstrung to be an ineffective provider, the government had to take a monopoly on insurance.  So far they have monopolized flood insurance, workmans' comp, social security and countless other plans.  Anything else in insurance is so highly regulated as to be ineffective, and a cause of antipathy misdirected from the insured to the captive insurers.

Now the evil money lenders have a problem.  Yes they bought and paid for the USA government, but the insurance companies, expert at statistics, have proved they were burned by the banks.  You and I have neither the skill nor money to establish this.  The insurance industry does.  The insurance industry also has massive amounts of money it invests in many industries, where the money is parked in case of disasters they need to cover with insurance.  They too can buy congressmen and presidents.

The banking industry, the insurance industry has proven,  burned the insurance industry (as well as everyone else, but we cannot prove it.)  The losses are big, and the insurance industry is big enough to fight back.    This federal fight will get interesting.  If the insurance industry allies with Ron Paul to bring the banks to justice, then insurers will be America's saviours.

A reward for taking on big banks, and defeating the evil cartels, might be to re-establish a free market in insurance, a big step in re-establishing freedom in USA.

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