Friday, October 16, 2009

The Obama health insurance scam --- a must read for patriots!

If you don’t believe that the Republican party leadership works in concert with the Democrat party leadership to protect the financial interests of unscrupulous big business, as distinguished from honorable businessmen, then you need to brush up on your history starting with the trusts and monopolies of the late 1800’s early 1900’s. If you do this and follow the path forward you will stumble upon the very actions of Congress which have resulted in today’s lack of competition in the purchase of health insurance policies. I will spare you the colorful historical details and hit the highlights for brevity’s sake but it is important to note the obnoxious nature of monopolies was well known to our founding fathers. For example, the Maryland Constitution states in clear language “that monopolies are odious, contrary to the spirit of free government and the principles of commerce, and ought not to be suffered.”

During the late 1800’s there was constant outrage being expressed by the people concerning unfair business practices engaged in by monopolies and trusts which led to Congress adopting the Sherman Anti-Trust Act of 1890, adopted to allegedly “protect trade and commerce against unlawful restraints and monopolies”. But the Act, when brought before the Supreme Court, was found to be ineffectual, probably adopted to calm the people rather than effectuate its stated goals.

With the heat still on and both political party leaderships promising to address the issue, the Clayton Act was passed in 1914 to supplement and strengthen the Sherman Act. Keep in mind the alleged goal of Congress during this time period was to deal with monopolies, fight unfair trade practices, and promote competition. Well, isn’t that what Congress is still panhandling with regard to health insurance, that competition is needed in the industry to bring down prices?

Moving forward, to the mid 1940’s a criminal indictment was handed down charging 27 individuals with violations of the Sherman Anti-Trust Act. Some of the specific allegations were conspiracy, price fixing, restraint of interstate trade and commerce, and monopolizing trade and commerce. Please, keep these charges in mind because they are very pertinent to our current situation. Anyway, the defendants in the case claimed they were not required to conform to the standards of business conduct established by the Sherman Act because “the business of fire insurance is not commerce.'“ But the Supreme Court decides the insurance business is in fact commerce and subject to the Sherman Anti-Trust Act and Congress’s regulations. See SOUTH-EASTERN UNDERWRITERS ASS'N, Decided June 5, 1944

Less than a year after the Supreme Court decision is handed down, Congress passes the McCarran-Ferguson Act of 1945 providing that the “business of insurance, and every person engaged therein, shall be subject to the laws of the several States which relate to the regulation or taxation of such business.” In other words Congress decides to relinquish its constitutionally assigned duty to regulate commerce among the States, but only with regard to the insurance industry. But, by handing this power over to the various State Legislatures it allows them to engage in practices which would otherwise be indictable under the Sherman and Clayton Acts, and the various State Legislatures decide to engage in such practices e.g., adopting discriminatory laws which work to stifle competition from out-of-state companies (restraint of interstate trade and commerce).

The power of a State Legislature to impose discriminatory law upon out of state business entities doing business within their state is immediately tested in Prudential Ins. Co. v. Benjamin (l946). The South Carolina law is upheld by the Supreme Court. The law imposed an annual tax of 3 percent of the premiums of out of state business entities conducted in South Carolina which is not imposed on instate business entities. In fact, the Court in handing down its decision ignores the very intentions for which Congress was granted power to regulate commerce among the states, which was to put an end to the various states imposing discriminatory law upon out of state commerce and enshrine free trade among the States into our federal Constitution!

But what is most amazing, when one realizes it, the defendants in the SOUTH-EASTERN UNDERWRITERS ASS'N case were charged with conspiracy in price fixing, restraint of interstate trade and commerce, and monopolizing trade and commerce. Well, with Congress’s behind-the-scene deal making in 1945 [AKA conspiracy] the McCarran-Ferguson Act was passed and paved the way for the various Sate Legislatures to “legally” engage in price fixing, restraint of interstate trade and commerce, and monopolizing the insurance industry within their borders, which are indictable offenses under SOUTH-EASTERN UNDERWRITERS ASS'N .

And who is the victim in all this? Mary and Joe Sixpack who live in a particular state and now find it difficult, if not impossible, to purchase affordable health insurance which they may otherwise be able to afford if allowed to purchase their insurance from and out of state company.

And what is the solution offered by Obama and the controlling political party leadership? Their solution is to create a massive nationwide government monopoly, engage in restraint of trade and competition among the States and price fixing, all of which has been found to be indictable offenses in SOUTH-EASTERN UNDERWRITERS ASS'N !

The lesson which ought to be learned from this historical view is, there are those who will always work to stifle free trade among the people in order to gain an overwhelming advantage and control over the people. Whether they wear a $1000 business suite, or their name starts with Senator or Representative, their evil is to interfere with the people’s inalienable right to engage in free trade with their neighbors.


We are here today and gone tomorrow, but what is most important is what we do in between and is what our children will inherit and remember us by.