A Defense of Capitalism and The Insurance Industry

Dear Carrie and Others, that Work in Insurance:

I wanted to address an issue that might have made you curious for some time. In my statements about equal access to the same health care, it might seem to suggest that Insurance Companies are to be judged negatively. That would be quite unfair and inaccurate. Here is the why? The root of any form of Insurance is based on the notion of Probability – mathematical probability. In a capitalist nation, why should an insurance company be forced to pay out, ever, for any person more than they know they will collect in premiums. That makes no sense!

One might say, but Bruce, are you in favor of capitalism? I’ve been critical of greed and corruption but that’s natural. It undermines all the good that capitalism can do. Of course, with my science background, I know that climate change and the human cause of that is supported unanimously (or close to that) by every scientist with any qualification to comment on that). I won’t go off on that tangent. Instead, I am going to prove my powerful support for capitalism.

Anyone who knows me will testify to my overwhelming fascination with technology, the technology of computers and all other related science and engineering. We have exponential growth in processing power, coupled with the same exponential growth in storage technology, internet speeds – also graphics processing. A typical CPU will have about 4 computing cores in 2018. A GPU – graphics processing unit – will have 100s of capturing cores. Their processing capability is measured in 10s of Teraflops – that is 10 trillion floating point calculations per second. Where a smartphone or tablet has more power than a computer of 20 to 25 years ago, a GPU has the power of the fastest supercomputer in the world less than 10 years ago – one gaming or workstation graphics card has the same processing power of those supercomputers that filled entire large rooms.

That is just amazing to me. Why does this happen? Capitalism. They know that people who already have great computers will keep upgrading. Entirely new uses for computers or processors are being developed. There is an embedded computer in pretty much everything you plug-in, charge or use in transportation.

So, based on probability, insurance would be there in case something unexpected happens and you need financial assistance. That’s reasonable. But then they forced an insane idea on a seller of a product. They asked them to sell a product to someone when they knew they would lose money, pay out more than they were collecting. Insurance companies also need to make a profit just to be sure they could cover the unexpected costs when someone needed their help. Occasionally we all take a loss, but one clearly tries to avoid knowingly taking on large numbers of losses – common sense.

Then something evil developed. Any company seeking to make a profit could not be the ones to meet a need that any just and good society required.

This will be continued….