Big Pickles

Pi Approximation Day.

Labels: comics, math

This is a complex and nuanced issue, so I just want to zero in on one talking point that I disagree with. The health care industry is fighting hard against a public option because they complain that the government does not compete on a level playing field. There is some truth to this, but I don't think it's entirely accurate.

First of all, consider one industry where the government offers a "public option" that competes directly alongside private companies: the carrier industry. When you go to ship a package, you can choose between several private companies like UPS or FedEx, along with lots of smaller local carriers, or you can go with the United States Postal Service. Everyone knows the difference in price and quality that this choice offers. The postal service is a little cheaper and sometimes not as fast or convenient, but for most people it's good enough most of the time. When you need more speed or reliability, you look at the private carriers.

Does the USPS compete on a level playing field with the private carriers? Not really. They can operate at a loss--and have several times over the years--without going out of business. But this has never threatened the viability of the private carriers. Rather, it establishes a benchmark of quality and price that the private companies need to exceed in order to maintain a competitive advantage. The government being what it is, this benchmark isn't too tough to beat.

No, the private carriers are usually much more concerned about the competition they receive from each other. UPS isn't trying to get you to switch from USPS, they want you to switch from FedEx.

As the above article indicates, this is the kind of competition that's lacking in the health insurance industry. Because so many health insurance markets are near monopolies, a public option wouldn't be introducing unfair competition--it would be introducing competition, period. The distinction is meaningless to the insurers, of course. However you define it, a public option will subject them to a level of competition they will consider onerous. But I think it makes all the difference in public perception. Most people probably wouldn't have a problem asking health insurers to compete for business in the marketplace the same way UPS and FedEx do. (In fact, most people probably assume they already do.)

Amusingly, the toilet on the International Space Station really did break down. It's fixed now.

Twitter ties it all together.

Labels: science, tv