August 11, 2009

DAY 204

Gaffe in Portsmouth: Government-option will work like the Post Office!

Not really sure what’s worse here, that the president dissed the Postal Service, or that he committed the ultimate Washington gaffe by telling the truth.

During his health care town hall in Portsmouth, N.H., President Obama attempted to assuage fears about the government ruining free market health care by telling the audience that FedEx and UPS are doing fine, while the Post Office isn’t. Hey, why not just tell us that government-provided health insurance will be like going to the DMV?

From the American Spectator:

Meanwhile, at another point of today’s town hall meeting, Obama was pushing back against the idea that the creation of a new government-run plan would drive private insurers out of business, and he said that UPS and FedEx were doing fine, but “it’s the post office that’s always having problems.” Oops!

The gaffe arose from the inherent contradiction of those arguing for the introduction of a government government-run plan. On the one hand, Obama and other supporters of the idea argue that we need to have a strong government plan to create more efficiency, drive down prices, and “keep private insurers honest.” Yet at the same time, they have to make it appear weaker to push back against those of us who argue that it will threaten private insurance and move us toward a single-payer system. So then you get statements in which Obama, in the course of arguing for a government-run system, takes a shot at the government-run post office.

From the White House transcript:

Now, I recognize, though, you make a legitimate — you raise a legitimate concern. People say, well, how can a private company compete against the government? And my answer is that if the private insurance companies are providing a good bargain, and if the public option has to be self-sustaining — meaning taxpayers aren’t subsidizing it, but it has to run on charging premiums and providing good services and a good network of doctors, just like any other private insurer would do — then I think private insurers should be able to compete. They do it all the time. (Applause.)

I mean, if you think about — if you think about it, UPS and FedEx are doing just fine, right? No, they are. It’s the Post Office that’s always having problems. (Laughter.)

This can’t be good for those pushing the president’s reforms. Democrats are wondering why the American people are so up in arms about the possibility of government-run health care, and the president says not to worry about private insurance because the government is bad at running things.

Note this recent news about the Post Office:

The Postal Service lost $2.4 billion in the latest fiscal quarter, in addition to $2.3 billion in the first half of the fiscal year that began Oct. 1. Despite billions in cost reductions, the Postal Service projects a $7 billion loss for the year.

The service has said that it will not be able to make legally required contributions to finance future retiree health benefits. The prepayments are a major drain on cash flow.

Just don’t get sick on Sundays (or Saturdays), and don’t expect your care to arrive on time.

Sources:

The White House, Aug. 11, 2009
REMARKS BY THE PRESIDENT IN HEALTH INSURANCE REFORM TOWN HALL
The American Spectator, Aug. 11, 2009

Obama Lies on Single-Payer, Disses Post Office

The Washington Post, Aug. 11, 2009

The President and the Postal Service

The New York Times, Aug. 6, 2009

Senators Weigh Postal Service’s Future

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