Obamacare Lie #3: A government alternative will help competition

That’s a hoot!  Imagine you own a burger joint.  One day, the government decides your prices are too high, so it opens up a competing burger joint across the street.  This sounds innocuous but think about it.  The government burger joint doesn’t have to make a profit.  If it loses money, it can use its power to tax to make up any deficit.  The government could sell burgers for a penny and still not go out of business.  How is any business to compete with a competitor that has the power to tax?

But wait there’s more…  Not only does the government have the power to tax.  It can also regulate the competition.  So, the government could now mandate that all burgers contain one pound of beef.  Any burgers with less than one pound of beef are substandard and subject to severe government fines.  Will the government burger joint suffer?  Of course not. It sets the rules and can offset any extra costs with taxes.

The end result is the gradual loss of private competition.  This is what will happen when government starts competing against private insurers.  One by one, insurers will go out of business.