Tag Archives: Jobs

Health Care CEO Misleads Using Numbers

Many opponents of health care reform are throwing numbers around, making it sound like the health care industry is barely profitable. They claim a 2-3% profit margin. It’s a half-truth –that 2-3% is, in fact, the percentage of total revenue, which is different from net return on investment. For example, CNN Business lists fortune 500 industries by profit margin of total revenue.

If I make $2 for every $100 I collect in revenue that’s 2%. But if I make $2 million for every $100 million I collect that also 2%.  If my operating costs are 20% of my gross profit (the insurance company average is about 17%), then in the former example my net profit is $1.60, a 400% return on my $0.40 investment. In the latter example it would be $1.6 million, also a 400% return. In both I keep 80% of the gross. In other words, the health care industry’s revenue is ginormous, and its operating costs are low. There’s tons of wiggle room for profit even with having to pay out medical claims.

No one would stay in any business with a 2-3% net return on investment when CD bank rates are 2.85% for a 5 year certificate. With those numbers a business might as well invest its money and do nothing. The real numbers show that the health care industry’s return on share holder equity is 16%. Not a bad return at all. But if you accept the profit margin lie, then the health care companies must be operating at a major loss, which we know isn’t true.

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Conservatives And The History Of Teleprompters

Watch the video and you’ll see David Keene, the chairman of the American Conservative Union, call the teleprompters in front of him “this new technology”. The teleprompters here are glass panels on poles angled so as to reflect the projected words from below. Well, here’s a picture from the 1980’s of Ronald Reagan speaking before British Parliament. Anything look familiar?

One of the reasons conservatives fail so miserably is because they’re not living in the same reality as the rest of us. And they think they’re being clever. How pathetic.

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Sarah Palin, The Anti-Intellectual

Like George W. Bush, Sarah Palin (I keep typing “plain” mistakenly) is an anti-intellectual. She comes across as completely incurious about economic issues and about international politics in general. She obtained her first passport only last year. And she spouts mindless uninformed opinions on important scientific issues; for example, mocking the use of fruit flies in genetic research. A periodic reading of the science section of a news magazine would have educated her on the basics. Slogans like “Joe Sixpack”, “Hockey Mom”, and “Joe The Plumber” aren’t a substantive political platform, they’re advertizing jargon. You Betcha!

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Sarah Palin, Not A News Hound

Is it me or does Sarah Palin sound here like she could be George Bush’s equally dumb sister? I don’t know how to interpret her answer to Katie Couric’s question. Does Palin not read newspapers or news magazines, or does she not remember any of the titles of her favorite periodicals? Either way, it doesn’t look good on  camera. Her style is more appropriate for an unctuous saleswoman than a Washington politician. I can picture her now trying to sell me an insurance policy or a time-share in Miami Beach.

If I didn’t already know her belief in creationism, then I would have guessed. It follows that Curious George, the monkey, must be a Democrat, or at least a libertarian, because ultra-conservative, Christian Republicans don’t seem to give a rat’s ass about the wide world outside their bubbles of ignorance.

P.S. Check out how defensive McCain gets when Palin’s qualifications are questioned.

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